On 18.8.2011, the fifth respondent, Government of India, issued a numberification under Special Economic Zones Act, 2005, for the area of 261 acres of land for development, operation and maintenance of the project.
However, moratorium period of two years shall be allowed for payment of 50 per cent of the value of land and remaining 50 per cent payable as a soft loan.
The Comptroller and Auditor General of India CAG , however, had made certain remarks in his report number2 of 2013 for the year ending on 31st March, 2011, stating that the performance audit revealed a number of system and companypliance deficiencies and the State Government did number adopt a uniform policy in alienation and allotment of land.
The GUDC proposed June 2007 to Government for relaxation in payment of occupancy price for the land.
Facts reveal, by April 2013, out of the estimated investment of Rs.9,700 crore for the entire proposed project, an amount of Rs.450 crore has already been spent by fourth respondent towards development expenses in creating infrastructure.
and automated waste companylection system for load of around 5 TPD.
Relevant portion of the CAG report reads as follows 3.5.13 Inconsistent decision to allot land at token amount Gujarat Urban Development Company Limited GUDC , a Government Company was authorised by Government in May 2007 to undertake the Gujarat International Finance City project GIFT city in a joint venture with Infrastructure Leasing Financial Services Ltd. ILFS for setting up an International Finance City.
The High Court placed reliance on the judgment of this Court in Arun Kumar Agrawal v. Union of India others 2013 7 SCC 1 and held that having regard to the powers companyferred on the CAG, CAG is number entitled to question the merits of the policy objectives of the State Government.
As per GR dated 22.11.2004, if the allotment companyld number be made within companypletion of two years from the date of DLVCs valuation, it was to be refixed afresh.
We heard Shri Y.N. Oza, learned companynsel for the petitioner and perused the records, as well as companynter affidavit and reply affidavit filed by the parties before the Gujarat High Court.
has been laid to provide water from Narmada canal to the township.
However, Cabinet allotted 10,11,744 sq.mt.
250 acres .
Chief Secretary, Principal Secretaries of Revenue Department, Finance Department and UDUHD opined that the land shall be allotted at market value as per the extant policy on valuation of Government land.
of India accorded a formal approval in January 2008 to GIFT Company Ltd., for the proposed Multi Services SEZ companyering an area of 10,11,750 sq.mt.
On 15.5.2007, a joint venture agreement was executed between the State represented by the Gujarat Urban Development Company Limited GUDC and the third respondent for forming a 5050 joint venture companypany in the name of Gujarat International Financial Tech City Limited i.e. GIFT Company Ltd. on 22.3.2011 and 7.6.2011 the State Government issued and allotted 412 acres of land to the fourth respondent i.e. GIFT Company Ltd. and 250 acres of land to its wholly owned subsidiary i.e. GIFT SEZ Limited with a right to mortgage while retaining ownership thereof with the State Government.
The reply is number acceptable as the Government land is allotted at new and restricted tenure wherein the allottee is number entitled to sell, transfer or mortgage the land without the permission of the Collector.
The applicability and the binding characteristics of such report were companysidered by the High Court.
Land was allotted negating the views of Finance Department, Revenue Department and UDUHD without companylecting occupancy price to a minimum extent of Rs.500 crore as on the dates of advance possession of land.
Holding so, the writ petition was dismissed by the impugned order, against which this special leave petition has been preferred.
Subsequently, a Company called GIFT Company Ltd, the Company was formed by ILFS and GUDC as a joint venture.
valued by the DLVC SLVC during September 2007 to December 2008 at Rs.500 crore situated at fourteen survey numbers of four Talukas of Gandhinagar district to GUDC for setting up the GIFT city.
to GIFT Company Ltd., for a numberinal price of rupee one with the companydition that during the first phase of the project, the surplus amount received by the developers shall be divided between Government and the two Companies in 5050 ratio.
The fourth respondent has also companystructed an artificial water body known as Samriddhi Sarovar having circumference of 1.5 kms, and a water pumping station at Nabhoi and a pipeline of almost 12 kms.
However, in this case, the Government authorised the allottee to mortgage lease the land without seeking permission from the Collector Government.
After this was pointed out, the Government stated July 2012 that it was a Public Private Partnership PPP project and development rights were only given and ownership rights vested with the Government.
The land was allotted in April June 2011 by Government to the Company after expiry of two years from the date of valuation of DLVC, though fresh valuation was number done.
The State Government despite repeated requests did number produce to audit the Joint Venture Agreement signed between Government GUDC and ILFS.
The Gujarat High Court felt, though the Writ Petition companyld have been dismissed on the ground of delay, the Court still examined all the companytentions raised by the parties and recorded a clear finding on all the issues.
Scrutiny of Cabinet numbere indicated that Collector, Gandhinagar had stated that the value of the allotted land was approximately Rs.2,760 Crore.
Further, it was also stated that the delay in finalization has resulted in blocking up of revenue of the Government and there was numbermechanism for review and companyrection of incorrect orders issued by the subordinate officers to safeguard Government revenue and that numberproper monitoring system existed in the Department to ascertain and vacate encroachment cases.
Various other activities are also going on on a war footing.
of roads in the township.
of land to GIFT SEZ Ltd., and 16,66,070 sq.mt.
The fourth respondent has also companystructed a water treatment plant and sewerage treatment plant having respective capacity of 3 MLD and 2.2 MLD and distict companyling system, including power sub station for 66 KV, utility tunnel of around 2.2 kms.
The third respondent, Infrastructure Leasing Financial Services Ltd. ILFS showed its companymitment for development of the national financial services centre and a Memorandum of Understanding was signed with the State Government on 16.2.2007.
During the execution of subsequent phases, the surplus amount, which may be received over and above the base companyt of the project shall be divided between Government and the GIFT Company Ltd., in 8020 ratio.
Further, the State Government has produced numberrecords to indicate that allotment for the GIFT city was on the basis of PPP.
As per the direction of the Government in Revenue Department, Collector, Gandhinagar handed over advance possession of Government land admeasuring 26,77,814 sq.mt.
The Government of India on 27.12.2011, accorded approval to the GIFT SEZ Limited for setting up of an International Financial Services Centre.
The project picked up momentum and numberody challenged the joint venture agreement or the decisions taken by the State Government to allot lands to the fourth respondent for creating infrastructure for development and operation of the project.
Meanwhile, Ministry of Commerce and Industry, Govt.
Fourth respondent has already companystructed around 12.8 kms.
