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More trouble for Maruti, industry body issues notice

gurgaon Updated: Jul 23, 2012 00:51 IST
Deevakar Anand
Deevakar Anand
Hindustan Times
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Even as Maruti Suzuki India Limited's (MSIL) Manesar plant has been locked out following labour unrest, the Haryana State Industrial and Infrastructural Development Corporation (HSIIDC) has served a show-cause notice on the firm for non-payment of enhanced cost of land it was allotted.

In a letter, accessed by HT, HSIIDC has asked the auto major: "Why proceedings should not be initiated against you for resumption of plot" over non-payment of Rs 235,40,26,584 as the enhanced cost for the land it bought for its plant here at the Industrial Model Township (IMT), Manesar.

This amount is just an interim payment as the apex court is yet to pass the final order in this regard. The Punjab and Haryana High Court had set the enhancement at R39 lakh per acre against which HSIIDC moved the SC.

HSIIDC had paid R4 lakh per acre to the farmer who moved court for a hike in the compensation. If the SC withholds the HC order, MSIL will have to foot enhancement cost of land to the tune of nearly Rs 1,000 crore as its plant is spread in almost 600 acres at IMT.

Like MSIL, more than a hundred other industrial units at IMT which bought land during the second phase of development at the industrial township have been served similar show cause notices by the HSIIDC in recent past.

Industrialists, however, say HSIIDC should foot the enhanced cost itself and not burden owners. "HSIIDC has earned ample money over the years. It should abstain from trying to pay through our nose," the Manesar Industries Welfare Association (MIWA) said in a statement.

However, the officials said according to the buyer-seller agreement between industrialists and HSIIDC, the enhancement costs have to be borne by the plot owners.