Ahmedabad, 12 June 2012

The inquiry commission set up by the Gujarat government on August 17, 2011 and headed by retired Supreme Court judge Justice M B Shah to probe 15 charges of corruption and favouritism levelled by Gujarat Congress and independent complainants against Chief Minister Narendra Modi and the Gujarat government conducted its second hearing yesterday. The inquiry commission was set up after Shaktisinh Gohil and Arjun Modhvadia of the Gujarat Congress wrote a memorandum to the President of India detailing 17 alleged instances of corruption and favouring along with details, 2 of which have not been included since they relate to matters subjudice.

Three individuals, Gautam Thakar of Citizens for Democracy, Prakash Shah of PUCL and Suresh Kaundinya, have made written submissions before the inquiry commission. Out of the three, only Gautam Thakar, represented by advocate Dipak Kiratsata, has appeared in person so far.

Senior counsel Bhaskar Tanna along with Mahrook Kerravala and Kartikeya Tanna of Tanna Associates Advocates are appearing on behalf of the Gujarat government.

In the first hearing conducted last week on June 4, Thakar raised questions on how the Adani Group was allotted huge quantities of land in the Mundra area at low rates ranging from Re 1 to Rs. 32 per square meter and how such prices were determined. Mr. Tanna responded that the government allotted land after going through a scrupulously followed three-stage elaborate process involving the appropriate district Collector, Chief Town Planner and the State Evaluation Committee.

A copy of such allotment by the government to Adani Group to develop the Mundra port and Mundra SEZ along with details of pricing mechanism was provided to Thakar in the second hearing yesterday.

On the question of allotting land without auction, Mr. Tanna argued that such policy has been in vogue since 1956 pursuant to which crores of square feet of land have been allotted, much of it in fertile agricultural land, by successive Congress governments. It is difficult to understand how the Congress leaders are now finding fault with allotment of land in the low-tide and muddy area around Mundra.

Mr. Tanna also explained the Special Economic Zone (SEZ) policy of the Central Government and Gujarat Government which encourages private groups to make high-capital investment at high-risk high-return and with a low gestation period. For example, the Adani Group has taken the risk of reclaiming much of the land under sea and has been able to develop the low-tide Mundra zone.

Though the inquiry commission is hearing all 15 charges contained in the Gujarat Congress’ memorandum to the President, Gohil and Modhvadia have not appeared before the Commission instead urging the appointment of Lokayukta to hear these charges. However, Mr. Tanna informed the Commission that in their memorandum to the President of India (Insert), Gohil and Modhvadia have written that “even if anybody is appointed in the said post (Lokayukta), would not be able to deliver any effective result” due to the advisory power of the Lokayukta under the Act which, incidentally, was enacted in 1986 during Congress rule.

The Commission has already commenced an ‘inquisitorial inquiry’ under which the Commission requisitions appropriate records and files to inquire into the allegations and prepare its report.

The current phase in the Commission’s hearings deals with questions pertaining to allotment of land. It was learnt that the other allegations shall be taken up later.

The next hearing has been fixed for Wednesday, June 20.