The Times of India: Hyderabad: Sunday, May 13, 2012.
The ongoing G S Gupta-DLF controversy has another chapter of illegal dealings to it, this time involving a government body that broke its own rules. In reply to an RTI query, the Hyderabad Metropolitan Development Authority (HMDA) has revealed that it re-leased an already leased out property (to G S Gupta and DLF) in Moosapet (Kukatpally) to 11 parties and raised a revenue close to Rs 53 lakh. The temporary leases were granted between April 2009 and December 2011.
The land measuring up to 24 acres and 23 guntas (it was later remapped to be just about 15 acres) was in August 2008 rented out to DLF SPBL Developers Private Limited, a joint venture between DLF and a G S Gupta firm, by HMDA for the development of an integrated agriculture project. The lease, as per the agreement (a copy of it is in STOI's possession), was for a period of 33 years wherein the lessee would have to pay a monthly rental of Rs 39.64 lakh to HMDA. The joint venture company, however, failed to pay a single penny.
"It could be for this reason that HMDA decided to re-lease the land to other parties. But this is in violation of norms as a land already allotted to one party cannot be leased to a second party without the termination of the first agreement," explained an expert from the industry. In this particular case, HMDA terminated the lease only in 2011.
The illegal allotments were made for various purposes, including fairs, circuses, exhibitions, school events and other commercial shows. While all the leases were short-term, spanning not more than two months, the HMDA collected rentals ranging anywhere between Rs 10,000 and Rs 8.6 lakh. The temporary lessees were given about three-four acres from within the property allotted to the joint venture. As per the lease deed between HMDA and DLF SPBL Developers, the 'lessor' (HMDA in this case) "shall not be entitled to assign, sell or convey in any other manner the scheduled property to any third party during the term of the present lease".
M Ashok Kumar, estate officer of HMDA, brushed aside the issue and said that the leases were only "temporary allotments". Passing the buck on to the serving commissioners of the development authority, he said, "Whoever was the head of the department during those years decided to raise revenue through such allotments. We were anyway not receiving any rent from the joint venture." The estate officer also added that several official communications demanding the lease amount were sent to the original lessee prior to renting out the space to third parties. The department, that recently got the land, plans to auction it soon.
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