West Bengal government will soon decide on its next course of action on alleged irregularities in selling of land by Hindustan Motors, as the empowered committee of secretaries has submitted its report on the issue.
According to state industry minister Partha Chatterjee, the report would be sent to chief minister Mamata Banerjee for consideration.
A committee consisting of secretaries, one each from the land and land reforms department, finance and industry departments was formed to come out with a policy-decision on state's action on matter.
The transaction in question dates back to 2007. Hindustan Motors' Uttarpara plant that manufactures ambassador cars, had a total of 741 acres, of which the factory is built on 427 acres. The crisis-ridden company approached West Bengal government in 2003 to raise funds by selling the excess 314 acres of land for revival. Since the Uttarpara land had been vested with the West Bengal government, the company needed approval for alternative usage.
In 2006, it got an approval from the Left Front government to sell the land. HM had informed of a Rs 85-crore projected revenue from the sale of excess land.
However, government claims an internal audit of the state government as well as the state vigilance enquiry has found that HM had sold the land to Bangalore-based Shriram Properties for the development of an integrated IT township at a price of Rs 285 crore in 2007. The vigilance officials recently quizzed some former government officials in the land department who were at helm of affairs during the transaction.
The state also believes, the money was not ploughed back to the company. However, the company had earlier denied the allegations saying the money went to 'deficit financing' of the Uttarapara plant.