16 Officials including 3 IAS suspended in NOIDA land Scam

Sixteen officials, including three senior IAS officers, were suspended on Monday for their alleged involvement in the irregularities in the allotment of plots to hospitality groups in Noida for building hotels for the 2010 Commonwealth Games.

The plot allotment for 14 hotels dates to January 2007, when the Samajwadi Party of Mulayam Singh was in power. The allotment was subsequently cancelled by Chief Minister Mayawati on July 31 that year.

An official spokesman said the alleged irregularities caused the exchequer an estimated loss of Rs.4721.14 crore. Apart from disciplinary action, Chief Minister Mayawati ordered criminal proceedings against the officials.

Among the officials suspended are the then chairman of the Noida Board, Rakesh Bahadur (now member of the Board of Revenue, Allahabad), the then Chief Executive Officer, Sanjeev Saran, and the then Additional CEO, K. Raveendra Naik. Orders have been issued for strict action against Devdutt, who retired as Commissioner of the Meerut Division. Eight officers of the New Okhla Industrial Development Authority have also been suspended.

More heads are likely to roll, as an internal inquiry has been ordered to spot the officials who allegedly delayed action against those involved in the irregularities. Ms. Mayawati has given the Industrial Development Department 15 days. Additional Cabinet Secretary Vijay Shankar Pandey told reporters that action would soon be taken against the officials responsible for the delay.

Incidentally, Chief Secretary Atul Kumar Gupta was the Industrial Development Commissioner in 2007, and in that capacity a member of the NOIDA Board.

Mr. Pandey said the land was allotted as commercial plots, in violation of the NOIDA Statutory Regulations, 1991, the Building Regulations of 2006 and the various provisions of the Industrial Area Development Act, 1976. The plots were allotted at the rate of Rs. 7400 per square meter against the revenue price of Rs. 70,000.

The allotment is part of the Government Order issued by the Tourism Department in June 2006 to promote investment in the tourism industry. The decision to implement the policy was adopted at the 135th meeting of the NOIDA Board.

Subsequently, plots were identified in sectors 96, 97 and 98 and advertisements issued in newspapers in October for allotment of 25 plots for building star hotels. Fourteen plots were allotted on January 12, 2007.

The allotment order was challenged in the Allahabad High Court on the ground that no tender was invited. After the allotment order was canceled by the NOIDA Authority in August 2007, the 14 hospitality groups filed a petition in the High Court.