Post High Court directive, fate of 350-acre land given to steel company hangs in limbo
Kolkata: The fate of the 350 acres of land in West Midnapore, transferred to a private TMT bar manufacturing company for industry purposes by the state government, now hangs in limbo as the Calcutta High Court on Friday, besides injuncting the transfer of 11.28 acres out the total land, also directed that no equity can be claimed for the rest of the remaining land.
The 350 acres land in question is a portion of the total land which was purchased by the Prayag Group which was later found allegedly running a ponzi scam. The group had purchased land for a film city in West Midnapore. The state counsel submitted in court that the lands acquired by the group was beyond permissible limits and was hence assumed by the state, save and except four decimals. The division bench of Justice Joymalya Bagchi was hearing a matter where the depositors, who lost money in the ponzi scam, prayed for the return of the deposits. Earlier, the court referred the matter to a one-man committee formed to manage the immovable and movable assets of Prayag Group and formulate a scheme for return of the depositors’ money. The film city was part of immovable assets and went under control & management of this committee. The state is learnt to have prayed for release of 11.28 acres on the premise that a parcel of 350 acres of vested land was being developed for industrial purpose through WBIDC. It was contended by depositors that despite no order by the committee, the state illegally proceeded to transfer the land, including the 11.28 acres to a third party (TMT company).
The court observed that the state was duty-bound to obtain necessary permission for release of the land prior to its transfer.
“The land though vested constitutes proceeds of crime as it was purchased by Prayag Group through ill-gotten wealth from depositors,” the court observed. The court injuncted the transfer of 11.28 acres of land which is with the committee. Justice Bagchi also questioned how the state could transfer the land to the third party without any auction or tender process. The state was directed to file an affidavit. It was also directed: “Any action on the remaining property sold in favour of the third party shall abide by the result of the writ petition and no equity can be claimed by the third party or anyone claiming through him with regard to the transaction which is the subject matter of the litigation.” The state was also directed to file a report after making an inventory and assessment of structure on the vested land developed by Prayag Group. This needs to be done in consultation with SEBI.
