Matyas ex-chairman, Sinha in another cntroversy
The bureaucrat-turned-Maharashtra Airport Development Company vice-chairman and managing director RC Sinha, who resigned from Maytas following the multi-crore financial fraud, has landed in a fresh controversy.india Updated: Jan 14, 2009 19:25 IST
The bureaucrat-turned-Maharashtra Airport Development Company (MADC) vice-chairman and managing director RC Sinha, who resigned from Maytas following the multi-crore financial fraud, has landed in a fresh controversy. Sinha had sought diversion of Rs 250-crore, belonging to MADC for the development of Nellore airport in Andhra Pradesh.
This money was part of the sum earmarked for the multimodal international hub airport at Nagpur (MIHAN), the flagship project of MADC. Curiously, MADC had tied up with Indu Group to execute development of Nellore airport and only common factor in both the companies was Sinha, who is also the director of Indu Group.
The MADC was essentially formed to develop MIHAN and SEZ at Nagpur in 2002 by the state government as a special purpose company. The MADC was jointly formed with equity participation from City and Industrial Development Corporation Ltd. (CIDCO), Nagpur Improvement Trust (NIT), Maharashtra Industrial Development Corporation (MIDC), Maharashtra State Road Development Corporation Ltd. (MSRDC) and later Nagpur Municipal Corporation, too joined in. It was primarily formed to play a lead role in the planning and implementation of the MIHAN project, keeping in mind the key objectives. Besides, it was also to take up development of other airports in Maharashtra not belonging to the Airports Authority of India (AAI) and Indian Air Force (IAF).
Keeping this objective in mind, the state government had liberally funded MADC. However, its move to divert the fund to Nellore airport project has badly exposed misfeasance and brazen violation of MADC mandate. It has also bared shoddy handling of MIHAN project and undue and unwarranted interest of MADC, and especially Sinha in taking up projects in other states for companies in which he continues to be a director. The Indu Group claims to be an end solutions provider in infrastructure and real estate industry, based in Hyderabad.
The AP government accorded its approval to Nellore airport development project in second week of December last year and entrusted the job to MADC, along with its partner of the project, Indu Group. However, to avoid the bidding process, the project was sought to be executed under the government-to-government basis model. And, for this purpose, the Indu Group is partnering with MADC that had submitted a proposal for the airport. The MADC will hold 80 per cent equity while Indu will have remaining 20 per cent.
The MADC has to cough out an investment of Rs 250-crore to complete the project and it had promised to complete the work in 36 months. Had the Maytas-Satyam scam not surfaced, the AP chief minister was all set to lay the foundation stone of the proposed project middle of this month.
Sinha, however, was not available for comments.