Cabinet sub-panel cancels land allotment to Kinetic Power

Committee reviews land allotments made to various projects by YSR govt. An expert committee would be appointed to look into the expenditure under ‘Megha Madhanam’ and get the accounts audited by a special officer.

January 04, 2015 10:09 pm | Updated July 08, 2016 07:38 pm IST - HYDERABAD:

Ministers Nimmakayala China Rajappa, Yanamala Ramakrishndu, Siddaraghavarao at the Cabinet Sub-Committee meeting at the Secretariat in Hyderabad on Saturday.Photo: By Arrangement

Ministers Nimmakayala China Rajappa, Yanamala Ramakrishndu, Siddaraghavarao at the Cabinet Sub-Committee meeting at the Secretariat in Hyderabad on Saturday.Photo: By Arrangement

The Cabinet Sub-Committee on Prevention of Corruption has resolved to uphold the decision of AP Industrial and Infrastructure Corporation to cancel the 814 acres allotted to Kinetic Power Private Ltd., for violation of norms.

The committee reviewed land allotments to various projects by the Y.S. Rajasekhara Reddy government and other issues of corruption here on Saturday under the chairmanship of Finance Minister Yanamala Ramakrishnudu.

Disclosing the decisions, Information Minister Palle Raghunatha Reddy said the previous government had allotted thousands of acres of land indiscriminately as part of quid pro quo and the allottees had violated all norms and changed shareholders keeping the government in dark.

The Kinetic Power Pvt Ltd., was given land near Krishnapatnam in Nellore district, he said.

It also decided to cancel allotment of 25,000 acres of land to the Vadrevu and Nizampatnam Port and Industrial Corridor.

The 8,844 acres allotted to Lepakshi Knowledge Hub in Anantapur district had also been cancelled in February, 2014 but the company went to court. The company which did not start any work, however, had mortgaged the land and raised Rs. 790 crore. The sub-committee decided to take legal opinion before recovering the land, he said.

The other decisions include representing to the High Court for reopening and reinvestigation of fraud committed by the excise syndicate that resulted in a loss of Rs.2,400 crore to the Exchequer. The government would take action against the accused and attach their properties under the Revenue Recovery Act.

An expert committee would be appointed to look into the expenditure under ‘Megha Madhanam’ and get the accounts audited by a special officer. The Congress government had sanctioned Rs.120 crore for the programme though it was proved that it was a futile programme and bills worth Rs.40 crore were pending.

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