Kochi, february 27, 2008: A meeting of the Board of Approval for Special Economic Zone (SEZ) of the Union government here on Monday postponed a decision on according SEZ status to the proposed Smart City in Kochi.

A decision on the proposal was postponed in view of a complaint of forcible displacement by a person who had been evicted for the Smart City project. The Board set aside the matter pending clarification from the State government.
Report sent

District Collector A.P.M. Mohammed Hanish has sent a report to the State government explaining that the eviction in question was legitimate and the person was compensated as per the agreed terms.

The State government is expected to forward the report to the Centre shortly. The Board will hold its next meeting in mid-March.

The delay in awarding SEZ status had raised concerns that it would have a cascading effect on the project. It was feared that this would delay the preparation of a master plan by the Dubai Technology and Media Free Zone Authority (TECOM), promoters of Smart City.

However, a senior official of the State government said there was no basis for such apprehension.

“The SEZ status and master plan are totally unrelated and, therefore, it would not in any way hinder the progress of the project,” he said.

He said the State government was determined to fulfil the commitments on its part.

‘Officials’ inability’
Moreover, it was not the complaint of the evictee, but the inability of the officials who represented the State before the Board to convey the facts that led to the postponement of the decision, it is learnt. Besides, it is feared that the indecision on waiving stamp and registration duty, which comes to around Rs.12 crore, for the registration of the land would prove costly.

As per the existing provisions, the land should be registered within 120 days from the date of signing the lease agreement. However, a top source said the apprehension of the agreement getting cancelled for want of a decision on waiver of stamp and registration duty was unfounded.

He said a clause in the framework agreement on the project clearly stated that in the event of a disagreement or delay in exempting registration and stamp duties, TECOM should register the land by paying all the required duties and can claim a refund once a decision was taken.

Source: The Hindu