Federation for People’s Rights (FPR) Secretary G. Sugumaran issued a press release on 17.12.2009:
The Union Government had filed an appeal petition in Supreme Court to recall or modify its earlier Judgment delivered in Puducherry Port Development case. In this context, Federation for People’s Rights (FPR) earnestly request the Puducherry Government to terminate the agreement entered with a private firm, in the light of the infirmities and gross violation of the statutory provisions in awarding the contract.
The Government of Puducherry evolved a plan to develop the existing port and entered in to a agreement with a private concern with an estimated cost of Rs. 2600 crores on 2005. The Government had transferred 153 acres of its owned land around the existing port site, to the private firm without obtaining prior permission from Ministry of Home Affairs (MHA), which is the competent authority as established by law. It also attempted to acquire the private lands in and around the Thengaithittu village.
As the people of Puducherry firmly believed that their fundamental basis for existence would be jeopardized on implementing the port project, they embarked into intensive agitation against the Government’s wrong decision. Following the agitation launched jointly by Political Parties and Social Movements, the Government announced that the port project would be kept in abeyance. It is worth to note here that FPR played a vital role in these struggles.
Following the Madras High Court and Supreme Court Judgments in the Port Project case, the Puducherry Government had determined to execute the project and announced the same in public.
At this juncture the Government of India, particularly the MHA has preferred an Appeal Petition in the Supreme Court of India to recall or modify the decision delivered earlier. The SC admitted the petition and had taken on file. In the light of this new development, the issue gains significance.
MHA had pointed out various Infirmities and violation of Rules and Regulations, Statutory Provisions of Puducherry Administration Act, Puducherry Rules of Business, Governance of UT Act and Constitution of India.
The Government had violated in the bid process, selection of bidder, terms of contract, disproportionate quantum of lease amount, constitution of governing body, etc. The Ministry of Economic Affairs, Ministry of Finance, Ministry of Home affairs, Planning Commission have recorded the violation of the rules to the core and undue favoritism shown to the private firm, which has been found guilty by the SEBI authorities. Besides the terms of contract has caused huge monetary loss to the Exchequer. The matter has been taken cognizance by the Central Vigilance Commission (CVC) which is yet to receive its reply from the Puducherry Government.
Further, it has been pointed out by the Government of India that handing over of 153 acres of state owned land to private firm is beyond the jurisdiction of Puducherry Government, as the power vest only with the MHA.
The lease amount has been fixed as 3.06 lakhs per annum for the above said land payable to the Government by the private firm. As per the normal procedure in practice in the states like Andhrapradesh, is that the lease amount should be 2% of the fair market value of the land. Hence, the lease amount to be collected figures around 14.5 crores. Hence, the Government has shown undue favour to the private firm causing substantial loss to the Government.
The Honble Minister for Port Mr. E. Valsaraj is behind all the illegalities and favoritism, and he should own responsibility for the whole affairs. We also request the Government to come out with a white paper in this regard.
Hence, the Government should take steps to terminate the said illegal agreement, forthwith. If the Government is failing to rescind the said contract, FPR will be in fore front to moblise the people and organise struggles against the Puducherry administration.
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