Dubai-based Tecom, promoter of the Rs 1,500 crore (Rs 15 billion) Kochi Smart city IT infrastructure project, on Friday threatened to go to court if the state government failed to resolve contentious issues including that of "freehold land", within the next two months.
"The framework agreement very clearly states that 12 per cent of the land is freehold, which is outside the Special Economic Zone," Smartcity CEO Fareed Abdul Rehaman said.
"We are prepared to wait for only two more months till Feb 28, 2011 and a solution to the vexed issues including the 12 per cent freehold land of the project should be taken by the government, failing which we would be forced to take a legal route or go for arbitration as a last resort," he said.
The Tecom has been demanding 12 per cent freehold land out of the 256 acres acquired for the project at nearby Kakkanad. However, the government has maintained there would be no change in its decision of not giving the promoters the right of freehold over 12 per cent of the project land.
Making his government's stand clear, Kerala Fisheries Minister S Sharma, who is also the Smart City chairman, said that there was no question of giving Tecom the right of freehold over the land.
"That is the government policy," he said. To reach a solution, the state government had appointed NRI business man M A Yusuf Ali, NORKA Roots Vice Chairman and Director Abu Dhabi Chamber of Commerce and Industry to mediate with the UAE authorities, and who, according to Sharma, is expected to submit a report in 10 days. Smart city CEO Fareed Abdul Rehaman Fareed said his company was keen that things should work out.
"We do not want to ruin the relationship with any parties. There has to be a solution. It is clear in the framework agreement that if there is a dispute how to go about it. We would like to keep the legal route and arbitration only as a last resort," he said.
According to Fareed the project was also about foreign direct investment, creating jobs and development.
"This is not a personal issue. It is a project which would create jobs, bring in about $400-500 million FDI," he said. "Partnerships are like a marriage. If it does not go well.. We do not want to ruin a relationship with anyone," he said.
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Dubai-based Tecom, promoter of the Rs 1,500 crore (Rs 15 billion) Kochi Smart city IT infrastructure project, on Friday threatened to go to court if the state government failed to resolve contentious issues including that of "freehold land", within the next two months. 