Why Fadnavis Ordered An Inquiry Into Shinde Decision

'I am simply highlighting a wrongdoing. This is why my complaint has merit, and the chief minister has ordered an inquiry.'

The rift between Maharashtra Chief Minister Devendra Fadnavis and Deputy Chief Minister Eknath Shinde seems to be widening.

Topping off speculation that Shinde is in a sulk over being sidelined is the fresh allegation of wrongdoing by the administration during his term as chief minister.

Shinde's decision in 2022 to give a go-ahead to the City and Industrial Development Corporation of Maharashtra (CIDCO) to a Rs 900 crore (Rs 9 billion) project in Jalna is in the centre of the new controversy.

It was reported this week that Fadnavis has ordered a probe into the decision and asked CIDCO to submit a report on the Jalna project.

And the man who exposed the alleged wrongdoing is Santosh Sambare, the former MLA from Badnapur, Jalna district, on whose complaint Fadnavis ordered the probe.

"Jalna is an underdeveloped city with low purchasing power among its residents. In prime areas of Jalna, land is available at Rs 800 to Rs 1,000 per square foot. Why would anyone, in their right mind, buy land in CIDCO areas -- close to Jalna -- at Rs 5,000 per square foot?," Sambare asks Syed Firdaus Ashraf/Rediff.com.

Your complaint has created a rift between Chief Minister Fadnavis and Deputy Chief Minister Shinde.

Let me first clarify that this is not a political case. It is also not an issue between the CM and DCM as the media is portraying. I have only raised concerns about this project, and the media has given it a different meaning.

The political buzz is created by the media -- I have no concern with the political aspect of this issue.

So what was your complaint?

In 2018, CIDCO notified 247 hectares in Kharpudi near Jalna city. At that time, the chief minister of Maharashtra was Devendra Fadnavis, who directed CIDCO officials to conduct a financial and technical feasibility study through a third party.

Subsequently, Ernst & Young was appointed to assess the feasibility of the project. Their report, submitted to the CIDCO administration, clearly stated that the Jalna-Kharpudi project was not feasible.

EY, a reputable international company empanelled on the CIDCO board, provided a neutral and practical ground report, ultimately recommending that the project be de-notified.

Following this, in 2019, the project was de-notified based on CIDCO's board of directors' direction to the Maharashtra government.

What was the reason?

The reasons cited were water scarcity, poor connectivity, and low purchasing power among the people of Jalna.

EY's report explicitly stated that CIDCO should not proceed with the project. Consequently, the CIDCO board of directors advised the Maharashtra government to withdraw the project, which led to its de-notification in 2019.

What happened after that? How did the project get active again?

Despite the project's de-notification in 2019, the land mafia, in collusion with government officials and bureaucrats, managed to re-notify the project on the same land pockets that were previously deemed unfeasible.

Who were the real owners of the land where the project was to begin?

Two to three groups of companies or families started purchasing the land. Collectively, they acquired 400 acres from local farmers and others who were unaware that the project would be restarted.

They bought land from poor farmers at extremely low prices, intending to sell it to CIDCO at a much higher rate.

You are a former MLA from the Shiv Sena (Uddhav Balasaheb Thackeray). Is this not a political move by your party?

Let me clarify once again -- this is purely a case of malpractice, illegal activities, and corruption.

It involves purchasing low-cost land from poor farmers and then attempting to sell it at an inflated price to a government organisation like CIDCO.

My intentions are clean and honest; I am simply highlighting a wrongdoing. This is why my complaint has merit, and the chief minister has ordered an inquiry.

I have provided all legal and technical aspects of the Kharpudi CIDCO project to Chief Minister Fadnavis.

What exactly was the wrongdoing?

It is quite simple -- a group of people bought land at dirt-cheap rates in Jalna and are now attempting to sell it to CIDCO at a much higher price.

This is clear wrongdoing because a project that was deemed unfeasible in 2019 was suddenly declared feasible in 2022, right after these groups purchased land at the same location.

Despite multiple complaints, the land mafia was the first to receive compensation whereas not a single farmer received compensation in the initial phase.

How did the project get revived?

With illegal and malicious intent, the land mafia with connections to government officials and bureaucrats collectively planned to restart the project.

This time, they engaged another consultant company, KPMG, to conduct a feasibility study. Surprisingly, KPMG gave the project a clean chit.

Now, either KPMG is not telling the truth, or EY is not telling the truth.

This contradiction is why I have demanded that the CM take action -- either KPMG or EY should be blacklisted.

Since their reports are completely contradictory, one of them must be misleading.

Based on these feasibility reports, CIDCO is set to invest around Rs 900 crore in the project. The government must take corrective measures against these companies.

What is your view?

In accordance with the directive issued by Chief Minister Fadnavis in response to my letter, the CIDCO administration must conduct a thorough investigation into the entire matter.

This should include a detailed examination of the legal search reports of the land, an assessment of the prices at which the land mafia acquired the land, and an inquiry into the malpractices involved in the re-notification of the project.

If the project is not feasible, why should CIDCO show interest?

Jalna is an underdeveloped city with low purchasing power among its residents. In prime areas of Jalna, land is available at Rs 800 to Rs 1,000 per square foot. Why would anyone, in their right mind, buy land in CIDCO areas -- close to Jalna -- at Rs 5,000 per square foot?

So what is the solution?

I believe the government should appoint a third-party auditor, such as Deloitte or PwC, to conduct an independent feasibility study.

I am not opposed to CIDCO's presence in Jalna.

My only concern is that the project should be genuinely feasible for both CIDCO and the people of Jalna.

If the third-party report is negative, CIDCO should de-notify the project and recover the land acquisition payment from the land mafia.