DRT order on Cancer Care Trust to be challenged
DISTRICT ADMINISTRATION will challenge Debt Recovery Tribunal (DRT), Jabalpur?s order to auction the 10-acre Nazul land leased out to Cancer Care Trust at appellate tribunal in Allahabad.india Updated: May 28, 2006 14:33 IST
DISTRICT ADMINISTRATION will challenge Debt Recovery Tribunal (DRT), Jabalpur’s order to auction the 10-acre Nazul land leased out to Cancer Care Trust at appellate tribunal in Allahabad.
The appellate tribunal for Madhya Pradesh and Uttar Pradesh DRT is in Allahabad. Administration took decision to file appeal against DRT order after seeking legal opinion from Additional Advocate General Ashok Kutumbale.
According to Kutumbale, the lessee cannot mortgage the government land without prior permission of lessor and that government land cannot be auctioned but can only be transferred through a set procedure. In a letter to DRT Commissioner V Haider, district administration denied its involvement in the whole matter saying it was not a party to the appeal filed by Bank of Baroda (BoB), which bankrolled Trust’s activities.
The Trust auctioned the 10-acre land (survey number 498) at Pigdambar in Rau this March to highest bidder Raman Foundation at a throwaway price of Rs 2.71 crore though the total assets are valued at more than Rs 25 crore.
According to administration, the present market value of the land is Rs 10 crore. This is in addition to hospital building constructed on the land, which costs Rs 2-3 crore and hospital equipments including radiotherapy cobalt machine that cost Rs 15 crore.
The disposal of government land, according to Revenue Book Circular, can take place through permanent lease, temporary lease, granting annual license and through no claim agreement.
But the Trust projected it as a free hold land, as it did not mention that it was a leasehold government land in the auction notice. The DRT too didn’t take into account this aspect, sources said.
Raman Foundation, set up by a millionaire from Mumbai in the memory of his deceased son, yesterday took possession of some of the Trust’s equipments worth Rs 70 lakh from Robert Nursing Home. The Foundation representatives who met administrative officials at collectorate have shown interest in starting a cancer care hospital on the Pigdambar land.
Countering them, Nazul Department said that they could take the Trust’s hospital building and its equipments but they have no right over the land, as it belongs to the government.
The administration took possession of the land on May 5 leased out to Trust in 1991. The Trust had constructed a building and began to operate from there to help cancer patients financially and medically.
In 2001, the district administration cancelled lease for breaching the agreement. The Trust moved Board of Revenue against the order. While the matter was mired in adjudication, Trust took huge loans from BoB on pretext of extending its services.
The loan, along with interest, today stands at more than Rs 3.50 crore. When the Trust could not pay the dues, the Bank filed a case at DRT, which directed the Bank to auction the Trust’s property and recover the sum.
As a result, the 4.68 acre-land was auctioned this March. On learning about it, District Collector Vivek Aggarwal asked Tribunal to stop the process stating that the land belonged to government.