HSIIDC sold lands to SMEs at almost 10 times higher costs than big industry: Manesar SMEs (Un-ease of Doing Biz in India - Ground Reality - Series I)
Updated: Jul 21, 2015 05:07:31pm
Manesar, July 21 (KNN) The small and medium entrepreneurs (SMEs), who were allotted the industrial land in Phase 4 of IMT Manesar at a “tentative cost”, have made a representation before the state government over HSIIDC constantly asking them to pay the enhancement cost even after CAG found that Haryana State Industrial Development Corporation (HSIIDC) sold land to them at much higher price than their cost.
CAG in their reports even asked HSIIDC to establish a connect between “Cost of developed land” AND “sale price” especially in view of their mandate being “No Profit/ No loss” for “Industrial land allotment”, the industrialists said in their representation.
The corporation has given them the time till August 7, 2015 to payment, failing which HSIIDC would go ahead with the resumption.
“We are not averse to paying enhanced costs to land owners as ordered by the courts BUT we do not want to pay the cost twice. We feel HSIIDC had already collected a much higher amount from us at the time of allotment in 2004 and are simply asking for the same again,” said the industrialists.
HSIIDC (earlier HSIDC) had acquired 657 acres of land in 2002 in Manesar for phase 4 of IMT Manesar. LAC valued the land cost to be Rs 2.25 Lac/acre to Rs 7.5 Lacs/acre and total acquisition cost paid to land owners was Rs. 3116 Lacs.
The land was developed by HSIIDC - Roads, Water supply & Sewers, ETP/STP connection etc. incurring a cost of Rs 2890 lacs.
In total 499.65 acres (Saleable area) of the land was sold and the cost of developed land/ Saleable area was around Rs 12 Lacs/acre.
According to the industrialists, HSIIDC sold - 231.3 acres of land to – Industrial plots at the rate of Rs 89+ lacs/acre; 142 acres of land to Techo Park at Rs 182 Lacs/acre; whereas 126.35 acres of land to Maruti Suzuki at Rs 19 Lacs/acre.
The industrialists have been raising the issue of sale price of plots being “Tentative” as per clause no. 2 of RLA of 2004.
“HSIIDC was aware of the “Land cost enhancement” issue and hence the cost at time of allotment was mentioned as Tentative,” Manesar based industrialist Sandeep K Jain, Managing Director, Solo Group told KNN.
Jain highlighted that HSIIDC collected Rs 488+ Cr in 2004 from Allottees, whereas the total cost of developed land to HSIIDC was Rs 60 crore.
Meanwhile, the surplus lying with HSIIDC since 2004 is 428 Cr, he stressed adding that the corporation is now relying only on clause no. 5 of the RLA to pass on the complete burden of enhanced cost awarded by the courts on to the Allottees.
The SMEs, who are already facing the brunt of slowdown and closure, have made several representations to HSIIDC raising their concerns but HSIIDC has been refusing to address their concerns since last 2 years.
“We have repeatedly represented to HSIIDC over last 2&1/2 years. Not satisfied with replies from HSIIDC, we were forced to go to court but were asked to go back to HSIIDC for their speaking order,” Jain said.
The industrialists, in their representation said, “We are not averse to paying enhanced costs to land owners as ordered by the courts BUT we do not want to pay the cost twice. We feel HSIIDC had already collected a much higher amount from us at the time of allotment in 2004 and are simply asking for the same again.”
“Industry is going through a bad phase with the economic slow down across the globe and is in no condition to incur this cost again. Many businesses have already closed down due to harsh treatment from HSIIDC and if enhanced cost is to be paid by 7th August, many many more will be forced to close down,” they mentioned in the representation.
Jain said that reality in Phase IV of IMT Manesar today is that even if someone wants to sell his plot – there is no buyer offering even the original cost plus enhancement and allottees will have no option but to sell their plots at a huge loss, in order to pay HSIIDC and relocate their running businesses.
Now the big question is that how did HSIIDC arrive at the Tentative cost of Rs 2200/ SQM in 2004 and why did HSIIDC sell land to Maruti Suzuki at Rs 19 Lac per acre and to other industry at Rs. 89 & 182 Lac per acre. (KNN/SD)
CAG in their reports even asked HSIIDC to establish a connect between “Cost of developed land” AND “sale price” especially in view of their mandate being “No Profit/ No loss” for “Industrial land allotment”, the industrialists said in their representation.
The corporation has given them the time till August 7, 2015 to payment, failing which HSIIDC would go ahead with the resumption.
“We are not averse to paying enhanced costs to land owners as ordered by the courts BUT we do not want to pay the cost twice. We feel HSIIDC had already collected a much higher amount from us at the time of allotment in 2004 and are simply asking for the same again,” said the industrialists.
HSIIDC (earlier HSIDC) had acquired 657 acres of land in 2002 in Manesar for phase 4 of IMT Manesar. LAC valued the land cost to be Rs 2.25 Lac/acre to Rs 7.5 Lacs/acre and total acquisition cost paid to land owners was Rs. 3116 Lacs.
The land was developed by HSIIDC - Roads, Water supply & Sewers, ETP/STP connection etc. incurring a cost of Rs 2890 lacs.
In total 499.65 acres (Saleable area) of the land was sold and the cost of developed land/ Saleable area was around Rs 12 Lacs/acre.
According to the industrialists, HSIIDC sold - 231.3 acres of land to – Industrial plots at the rate of Rs 89+ lacs/acre; 142 acres of land to Techo Park at Rs 182 Lacs/acre; whereas 126.35 acres of land to Maruti Suzuki at Rs 19 Lacs/acre.
The industrialists have been raising the issue of sale price of plots being “Tentative” as per clause no. 2 of RLA of 2004.
“HSIIDC was aware of the “Land cost enhancement” issue and hence the cost at time of allotment was mentioned as Tentative,” Manesar based industrialist Sandeep K Jain, Managing Director, Solo Group told KNN.
Jain highlighted that HSIIDC collected Rs 488+ Cr in 2004 from Allottees, whereas the total cost of developed land to HSIIDC was Rs 60 crore.
Meanwhile, the surplus lying with HSIIDC since 2004 is 428 Cr, he stressed adding that the corporation is now relying only on clause no. 5 of the RLA to pass on the complete burden of enhanced cost awarded by the courts on to the Allottees.
The SMEs, who are already facing the brunt of slowdown and closure, have made several representations to HSIIDC raising their concerns but HSIIDC has been refusing to address their concerns since last 2 years.
“We have repeatedly represented to HSIIDC over last 2&1/2 years. Not satisfied with replies from HSIIDC, we were forced to go to court but were asked to go back to HSIIDC for their speaking order,” Jain said.
The industrialists, in their representation said, “We are not averse to paying enhanced costs to land owners as ordered by the courts BUT we do not want to pay the cost twice. We feel HSIIDC had already collected a much higher amount from us at the time of allotment in 2004 and are simply asking for the same again.”
“Industry is going through a bad phase with the economic slow down across the globe and is in no condition to incur this cost again. Many businesses have already closed down due to harsh treatment from HSIIDC and if enhanced cost is to be paid by 7th August, many many more will be forced to close down,” they mentioned in the representation.
Jain said that reality in Phase IV of IMT Manesar today is that even if someone wants to sell his plot – there is no buyer offering even the original cost plus enhancement and allottees will have no option but to sell their plots at a huge loss, in order to pay HSIIDC and relocate their running businesses.
Now the big question is that how did HSIIDC arrive at the Tentative cost of Rs 2200/ SQM in 2004 and why did HSIIDC sell land to Maruti Suzuki at Rs 19 Lac per acre and to other industry at Rs. 89 & 182 Lac per acre. (KNN/SD)
Loading...
){kind=link}