'Low price', Punjab Government's lease of Goa prime land to be cancelled
Ruchika M Khanna
Chandigarh, June 28
The Punjab Government has decided to cancel the tender allotted to a private company for the lease of a prime piece of land along the sea coast in Goa. The tender for development of the eight acres was allotted for 15 years for only Rs 1.13 lakh per month.
Notice being prepared
A cancellation notice is being prepared and will be issued to the concessionaire, JK Stores, after getting it legally vetted. The CM has given the go-ahead. Gurkirat Kirpal Singh, Secy, Tourism
Top functionaries in the state government told The Tribune that the Chief Minister Bhagwant Mann had said that a notice of cancellation be served on the company as the tender was allotted at a very low price. It was allotted to the concessionaire during the tenure of the previous government without taking prior approval of all stakeholders in the joint venture company that owned the land.
“A cancellation notice is being prepared and will be issued to the concessionaire, JK Stores, after getting it legally vetted. The Chief Minister has given the go-ahead for the same,” said Principal Secretary, Tourism, Gurkirat Kirpal Singh.
The land originally belonged to a private entity, but was taken by the Tourism Department for joint development when they started their time-share scheme more than two decades ago.
As part of this scheme, the Punjab Tourism Development Corporation had taken 25 properties across the country for making “Holiday Homes” in joint partnership with the owners. It had not only proved to be a loss-making scheme, but also remained dysfunctional.
Three companies that come under the Tourism Department (Gulmohar Resorts, Satkar Holidays and Punjab Tourism Development Corporation) had stake in the Goa property, with Satkar Holidays having the largest stake.
When bids were invited by the Punjab Heritage and Tourism Promotion Board for leasing this property, it was decided that post-facto approval would be taken from the three stakeholders. One of them, however, refused to grant approval for the lease of land after the tender was allotted to the concessionaire. The land was allotted for 15 years, further extendable by 15 years in case all stakeholders agreed on that.
Sources in the Tourism Department say that after the AAP government took over the reins of power in the state, it realised that the seafront regulations changes approved by the Government of India would be adopted by the Goa Government. This would allow the concessionaire to use more portion of the land than allowed earlier. The land falls in high-tide area and only a part of it could be used for construction, while its sea-facing portion was allowed for use only for growing paddy or raising an orchard. It was then decided to cancel the tender.
It may be mentioned that the state Vigilance Bureau is already inquiring into how the tender was allotted without approval being sought from one of the joint venture owners of the land. A preliminary inquiry is already on and record regarding the case has been summoned from the Tourism Department, it is learnt.
Valued at Rs 54 cr in ’13
A valuation of the Goa property was done by the government in 2013 and its value was assessed at Rs 54 crore. Now, the value might have doubled, an official source said. Leasing it for Rs 1.13 lakh a month was bound to raise suspicion, he said.
The scheme
- Under the time-share scheme, the Tourism Department started joint development of properties over two decades ago
- The Punjab Tourism Development Corporation took 25 properties across the country for making “Holiday Homes” in joint partnership with the owners
- Three firms that come under the Tourism Department had stake in the Goa property, which was leased out for 15 years for only Rs 1.13 lakh a month
