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Mega-projects probe: CVC summons UT Estate Officer, consultant firm

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Express News Service

Posted: Mar 04, 2009 at 0439 hrs IST

Chandigarh The Central Vigilance Commission (CVC) has summoned UT Estate Officer R K Rao and the Chandigarh Administration’s consultant company SBI Capital Markets Ltd (SBI Fincaps) to its office on Wednesday. The summons was issued with regard to its ongoing probe on the controversial mega projects, including Filmcity, Amusement-cum-Theme park and Medicity, approved by Administration.

Sources said the CVC has asked both — the estate officer and consultant — to explain how they evaluated the value of the land allocated for the projects and on what basis were the revenue models finalised.

According to senior UT Administration officials, Rao has directed Assistant Estate Officer Ashwani Kumar to appear before the CVC as his representative.

SBI Fincaps, a joint venture of the State Bank of India and the Treasury Bank, was hired by UT Administration at a total expense of Rs 38 lakh to advise them on the Filmcity and Amusement-cum-Theme park projects. The company had earlier worked for the Chandigarh Housing Board as consultants.

Interestingly, the consultants changed their land-evaluation reports thrice in 37 days. The reserve price for the same chunk of land (30 acres earmarked for Filmcity) was initially evaluated at Rs 25 crore on October 27, 2006; this was enhanced to Rs 75 crore on November 9, 2006. On November 16, 2006, the estimate was again revised to Rs 125 crore as the reserve price.

At present, development work on all the sites allotted for these projects stands stalled as all records, files and official notings have been seized by the CVC.

Other Admn officials likely to receive summons soon

“As the probe progresses, the former Home Secretary, Finance Secretary, Director (Tourism), Deputy Commissioner and even the present lot are likely to be summoned by the CVC,” said a senior UT Administration official.

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