The Hindu Business Line : AP plans to cancel land to IMG Bharata

IN a significant development, the Andhra Pradesh Government plans to cancel allotment of 450 acres of land to IMG Bharata and for five other projects in other parts of the State made by the previous regime.

The Government is also contemplating options on how to extricate itself from the situation it is in with regard to allotment and registration of 400 acres already made to IMG Bharata and other issues relating to handing over of maintenance of seven stadiums and sports infrastructure.

Addressing a press conference here on Wednesday, the State Finance Minister, Mr K. Rosaiah, said this move follows a decision taken by the Group of Ministers (GoM) constituted by the State to study the issues relating to 61 land allotments of five acres and above.

It may be recalled that a Cabinet committee — headed by the State Finance Minister, including the Ministers of Revenue, Roads and Buildings, Major Industries and Tourism — was constituted soon after the present government assumed office.

Mr Rosaiah said that the GoM is in the process of deciding on other issues relating to IMG Bharata. IMG, a US-based professional sports services provider, through its Indian subsidiary, IMG Bharata, entered into an agreement to manage sports events and create world-class infrastructure including a golf course and tennis academies.

The Finance Minister alleged that while relatives of the former chief minister sold a 3.3-acre site for about Rs 3.3 crore, it was difficult to understand how IMG Bharata was offered land at Rs 50,000 an acre. Further, they were entrusted with the task of managing seven stadiums, with the Government agreeing to forego all revenues from gate collection and TV broadcasting fees, while agreeing to pay Rs 2.5 crore towards maintenance. The 45-year lease for maintenance of these stadiums was entered into with Mr Billy Rao and Mr Prabhakar Rao.

The State Government is treading this issue cautiously, as a similar cancellation of land to Duncan McNeil, which had planned a World Trade Centre in Hyderabad, resulted in the company filing a suit claiming loss of Rs 394 crore.

Of the 61 cases entrusted for review, Mr Rosaiah said 45 proposals were cleared, six cancelled and decision on five of them has been deferred. Among those cancelled are a site at Greenlands for hotel project, land for Sagar Sugars, Indian Barytes and Chemicals Ltd., IMG and Nizam Sugars.

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