KOCHI: Decks have been cleared to hew out parking space near the Kalamassery metro station, with the State government issuing an order maintaining that Apollo Tyres need to be paid only the land value that was paid (in 1962) along with interest for 62.22 ares of land required for the metro project and not the ₹46.33 lakh per are compensation fixed by the district administration in 2014 for the said land.
The order issued by Additional Chief Secretary Sheila Thomas (she retired on Mar 31) on March 31 says Apollo is not eligible for compensation as per market rate since the State government has acquired and assigned a total of 31.22 acres in 1962 and assigned it to what was then Premier Tyres Limited (PTL) for industrial use, on a 99-year lease. The government is thus exercising reversionary right over the land by paying only the land value paid by it originally with interest and the cost of improvements/depreciation as compensation. The Revenue Department must initiate steps in this regard, thus complying with the High Court order of December 2016, the GO says.
Back in 2014, the district administration had fixed ₹46.33 lakh per are as compensation for the said land. Following this, KMRL Managing Director Elias George wrote to Additional Chief Secretary (Finance) K.M. Abraham, saying that the government should take a careful, due-diligence scrutiny of the proposal to pay the firm the market rate as approved by the District Level Purchase Committee (DLPC) and the State Level Empowered Committee (SLEC), since PTL had paid a nominal rate for 31.22 acres assigned to it by the government on a 99-year lease. The compensation was not paid since Mr. George requested that ways and means clearance should not be accorded for making payments till the firm’s eligibility to receive payment at market rate is examined carefully and comprehensively by the government.
Mr. George shot off the letter after KMRL received petitions from members of the public that it was the government and not the firm that was entitled to compensation since the firm did not have the right to sell the leased land. The firm then approached the High Court, following which the court said the government must find out whether any reversionary right was vested with it even after assignment of land to PTL. It also directed the government to examine the matter and decide within a month after hearing the firm and KMRL.
Documents proved that the memorandum issued by the government in 1962 imposed conditions on the lease.
The March 31 GO directs the Revenue Department to initiate steps in this regard, thus complying with the HC order.
