The Hindu Business Line : Panel to probe HiTec City land deal with L&T

THE State Government will constitute a Cabinet sub-committee to probe the alleged irregularities in the allotment of land worth crores of rupees to L&T in the development of the HiTec City in Madhapur.

The committee will also examine various land deals struck during the Telugu Desam Government rule. It will look into the agreements with the L&T and submit a comprehensive report, the State Minister for Revenue, Mr D. Prasada Rao told the Legislative Assembly during Question Hour.

Responding to questions raised by Congress(I) leader Mr P. Janardhana Reddy alleging that the TDP Government allotted land at very cheap rates to L&T, the Minster said the Andhra Pradesh Industrial Infrastructural Corporation (APIIC) and L&T had formed a joint venture in 1996 to develop HiTec City over 158 acres of land. While APIIC held 11 per cent equity in the form of land, L&T held the rest 89 per cent in the joint venture.

The Minster said land was transferred to the joint venture company at the rate of Rs 62 lakh per acre with a 16 per cent increase every year. Of the 158 acres, L&T was allotted 20.70 acres at a cost of Rs 16.04 crore.

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