LOA Vol 36 - Issue - 02 - 15 Oct 2012
Cabinet Approval Not Sought for Viper Project
By
Staff Reporter
On 28 March 2011, before the Viper Yacht
Marina and 30-room accommodation agreement was signed, there existed an office
memorandum issued by the Ministry of Finance, which categorically stated that
approval of Union Cabinet for sale or long term lease of land belonging to the
Government is required. This Order amends the Office Memorandum dated 25 June
2010 reiterating the provisions of Rules 28 and 278 of GFR 2005, which makes
express approval of Finance Ministry essential for sale, lease of Govt assets
or resources and makes the approval of the Cabinet in each case of sale or long
lease of land mandatory.
In the Viper Project, the ANI Admn is learnt
to have not sought the approval of the Cabinet and has ignored the Memorandum
and given the land for long lease to the Reacon-PMM Marina consortium, in clear
violation of the General Finance Rules.
In the Office Memorandum issued by the
Ministry with the approval of the Finance Secretary, it clearly states that
instances of violations have come to the notice of the government where land in
possession and control of the government is sought to be alienated through
means such as sale, lease and that it has been observed that the value of the
land has increased tremendously, especially during last one or two decades. In
this context, Cabinet Secretariat has informed that a policy with regard to
transfer or alienation of land held by the Government or statutory authorities
etc is being framed by the Government and that the Prime Minister has approved
that in the meanwhile all the Ministries/Departments would seek specific
approval of the Cabinet in each case of sale or long term lease of land
belonging to the Government.
In a correspondence to the PPP Division of
the Consultant, Satish Mathur, Secretary Tourism had clearly mentioned that the
proposal does not attract the provisions of Policy on PPP mode and had sought
them to ignore it.
However, overlooking the approval of Cabinet
is in clear violation apart from various other breaches by ANI Admn in the execution
of the Yacht Marina Project in Viper
Island .
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