The Hindu Business Line : CBI to probe IMG Bharata land deal

In a significant development, the Andhra Pradesh Cabinet today decided to promulgate an ordinance that would enable the State to cancel the land allotted to IMG Bharata - a sports management company - by the previous Naidu regime.

Further, the Cabinet decided to refer the matter to the Central Bureau of Investigation (CBI) to probe into issues relating to the land allotment to this company and the benefits offered to them.

Caretaker Government

Briefing presspersons here after the State Cabinet meeting, the State Information Minister, Mr Mohd Ali Shabbir, said that the IMG Bharata was allotted about 850 acres of land in two places - at Serilingampally and Mamidipally respectively at Rs 25,000 per acre.

"These transactions have taken place at the time of the caretaker Government in February 2004. In the first instance, the sale of land by a caretaker Government is illegal and even then after more than two and a half years, the private party (IMG Bharata) to which the land was sold, has not taken any developmental activities with regard to sports development for which the land was sold to them," according to a statement circulated after the Cabinet meeting.

Fraudulent Claims

According to the Government, IMG Bharat claimed that it is a subsidiary of IMG East and also claims that it is part of family of IMG International, Florida. But there is nothing on record to prove this.

The Internet details of IMG International family does not contain the name of either IMG (Bharata) nor that of IMG (East). Thus, the claim of IMG (Bharata) is fraudulent one. It does not have any experience or any international connection with regard to development of sports infrastructure.

In order to protect the Government property, the Government now proposes to promulgate an Ordinance referred to as AP Government Property (Preservation, protection and resumption) Ordinance 2006.

With the help of this ordinance, these transactions, which the Government claimed are "unconscionable and against public interest," are proposed to be annuled.

The Naidu Government had entered into an agreement with the IMG in August 2003, and handed over a mandate to them to manage sports complexes and promote sports events.

ASSIGNED LANDS

In a related development, the Cabinet has decided to bring in another ordinance to amend the Andhra Pradesh Assigned Lands (prohibition of Transfers) Act, 1977.

The Minister said that the land allotted to beneficiaries is either not being used for the purpose it is meant or being sold to third parties. In such a situation, the Government would be able to acquire such lands.

In other decision, the Government has permitted AP Transco to mobilise Rs 975 crore to meet fund requirements. The State would provide the necessary guarantees.