Row between KMRL, Collector over Seematti land

Metro agency alleges pact between textile firm and Ernakulam Collector for higher compensation

February 14, 2016 12:00 am | Updated 09:13 am IST - KOCHI:

The viaduct of Metro passing through land owned by Seematti Textiles at MG Road in Kochi.

The viaduct of Metro passing through land owned by Seematti Textiles at MG Road in Kochi.

The stand-off between Kochi Metro Rail Ltd (KMRL) and the District Collector over the acquisition of 32 cents land belonging to Seematti Textiles on M.G. Road has taken a new turn, with the metro agency objecting to what it termed as an ‘agreement’ made between the firm and the Collector seeking higher compensation.

Rs. 52 lakh

In the agreement, the firm demanded compensation of Rs. 80 lakh instead of Rs. 52 lakh a cent that was settled upon prior to the commencement of metro’s viaduct works over the land.

“We are surprised that the agreement has significantly deviated from the standard clauses mentioned in agreements made with other land owners in the vicinity who surrendered land for the metro,” KMRL sources said and added that the matter has been taken up with Collector M.G. Rajamanickam and Principal Secretary (Revenue).

The details of the agreement were purportedly made known after an RTI applicant sought information on the same.

The changes made in the agreement from the general template may confer undue advantage to the firm, while compromising KMRL’s operational and financial interests (that is, the demand to pay Rs 25.6 crore instead of Rs 16.6 crore that was agreed upon). The compensation of Rs. 52 lakh a cent was approved by the State government after consideration by the State-Level Empowered Committee.

Extraneous provisions

Importing extraneous provisions into the agreement may confer a measure of legitimacy to the firm’s demand for higher compensation. This may also lead to other land owners demanding higher amounts as compensation, the KMRL sources said.

These extraneous provisions are unacceptable since they have the potential to detrimentally affect the interests of the KMRL and the government.

“We have requested the Collector to take corrective action and modify the agreement after deleting the ‘detrimental’ clauses.

Detrimental clause

Another detrimental clause is that land taken over from the firm can be used only for metro-rail purpose.

We object to the clause since the land was purchased directly and without pre-conditions.

The KMRL can use it for parking, additional revenue generation, etc., in line with practices followed by metros worldwide.

The Collector must cleanse the agreement of noxious clauses, KMRL sources said.

Revenue Department

Stating the Revenue Department’s stand on the issue, Revenue Principal Secretary Vishwas Mehta said the new Land Acquisition Act was aimed at preventing inordinate delay in taking over land. “Under this, the District Collector can follow a transparent process to decide the quantum of compensation. The department will take a call on the agreement with Seematti if it is referred to us,” Mr. Mehta said.

Collector’s stand

Responding to the issue, Mr Rajamanickam told The Hindu that he would forward his reply to the KMRL on Monday.

“The District Administration has not suggested higher compensation for the firm. Seematti has quantified their demand for higher compensation, citing provisions of the new Land Acquisition Act. I had apprised the KMRL officials of the implications of the new Act.

It is now up to the KMRL Director Board to discuss the agreement.”

He further said that it was mandatory that the land be used for metro purpose.

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