E-Paper
AKVN, Bajaj Tempo sister concern tussle over prime land
THE AUDYOGIK Kendra Vikas Nigam (AKVN) and the Jai Hind Industries are face to face on the issue of possession of 60,000 sq metre prime land in Pithampur that the former had allotted to the latter way back in 1984 for establishing a factory, which the company failed to utilise as per agreement even after 21 years.
THE AUDYOGIK Kendra Vikas Nigam (AKVN) and the Jai Hind Industries are face to face on the issue of possession of 60,000 sq metre prime land in Pithampur that the former had allotted to the latter way back in 1984 for establishing a factory, which the company failed to utilise as per agreement even after 21 years.
While the AKVN - the State Government agency for developing infrastructure in the industrial growth centres - wanted to take back possession of the prime land due to its non-utilisation, Jai Hind Industries argues that the land belonged to them, as they had established some factories on it.
According to sources, AKVN had allotted 60,000 square metres land to Jai Hind Industries, a sister concern of Bajaj Tempo, on August 24, 1984, at a premium of Rs 3.96 lakh at the rate of Rs 6.60 per square metre. As per Clause-7 of the lease deed conditions, the company had to complete construction within two years of the allotment of land.
As per Clause-7 (a), the company was to utilise the entire land in five years and as per Clause-7 (b), if the company failed to utilise the entire land, it had to either surrender the excess land or pay 100 times of prevalent rate of rent.
As the company failed to fulfill these agreements, AKVN first cancelled the lease agreement on August 10, 1993. On appeal, the company was given one year’s time from April 29, 1994, which expired on April 28, 1995.
But, Jai Hind Industries could not utilise the land. On second appeal, the company was asked to complete the factory building by September 1995 and start production by September 1996. The company was asked to start the production of second phase in April 1997. In the meantime, the AKVN Board also accepted on June 21, 1996, the request of the company for two more years’ extension from 1997 to 1999.
After these extensions of lease, AKVN finally served a notice on Jai Hind Industries in April 1999 to surrender 58,200 square metre land that it could not utilise till that time. The company again requested an extension till April 2002, which was rejected by the AKVN and it took possession of 50,500 sq metre land on August 27, 1999.
But, the AKVN did not allot this land to any other applicants so far and when the AKVN representatives visited the site on January 2 to mark the site for wire fencing, some company representatives reportedly took objection and prevented them from marking the land.
According to sources, AKVN has so far not recovered even the 100 times equivalent of the prevalent lease rate from Jai Hind Industries, which will amount to several crores of rupees.
Jai Hind Industries director Sudhir Mehta said that the company was running a factory on the land. However, sources in the AKVN said that there are only some sheds on the land in which the company has stocked some material.
AKVN Managing Director Ashish Shrivastava said, “I will take action as per the law. As I was busy in some urgent work, I am yet to see the file regarding this land.”
