Friday, February 10, 2012

The Bombay High Court on Thursday indicted former Chief Minister Vilasrao Deshmukh for irregularities in a joint venture for the allotment of 20 acres land to film director Subhash Ghai's film training institute Whistling Woods!

The Bombay High Court on Thursday indicted former Chief Minister Vilasrao Deshmukh for irregularities in a joint venture for the allotment of 20 acres land to film director Subhash Ghai's film training institute Whistling Woods!

"The decision was taken by the then administration to encourage education in the filed of entertainment. Bollywood is the capital of entertainment in the country," Mr. Chavan stated.

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The Bombay High Court on Thursday indicted former Chief Minister Vilasrao Deshmukh for irregularities in a joint venture for the allotment of 20 acres land to film director Subhash Ghai's film training institute Whistling Woods. The court stated that the agreement signed between Mr. Ghai's company Mukta Arts and the Maharashtra Film, Stage and Cultural Development Corporation (MFSCDC) is "illegal, arbitrary and without authority of law".In a scathing order against former Maharashtra chief minister Vilasrao Deshmukh, the Bombay high court on Thursday said he misused his position to allot 20 acres at Film City, Goregaon, to film producer Subhash Ghaifor just Rs 3 crore a decade ago. The Mumbai collector said the market value of the plot, where Ghai's institute Whistling Woods stands, was Rs 66.21 crore in 2000.

Dealing with two PILs against the deal, a division bench of Chief Justice Mohit Shah and Justice Girish Godbole quashed a joint venture pact between Maharashtra Film Stage and Cultural Development Corporation on October 24, 2000, and Ghai's company, Mukta Arts.In quashing the agreement, the judges were particularly harsh on Deshmukh, who is now the Union science and technology minister. "The role played by Respondent 7 (Deshmukh) in the entire transaction is deprecable. As highest functionary of state executive, (he) must be held to be aware of the legal provisions regarding public property," they said. "(Deshmukh) has clearly misused his official position as CM and it is certainly not acceptable that a chief minister will personally sign an agreement as a witness, though such agreement is completely illegal and does not have any support or authority even in the form of a resolution," they said.

Congress today said law will take its own course in the wake of the Bombay High Court judgement in the land allotment case in Mumbai allegedly involving Union Minister Vilasrao Deshmukh. Party spokesperson Renuka Chowdhury told reporters that law is universally applicable to all, but noted that in one para of the judgement, it has been said that there was no personal gain for Deshmukh, who was the chief minister at that time. "We will see the judgement," she said. The High Court has asked film maker Subhah Ghai to return to Maharashtra government the 20-acre land allotted for his film institute, making a scathing indictment of Deshmukh for "misusing his official position" as chief minister in showing "undue favours." The court, however, said there is no need for a CBI probe in the land deal since there was no material to indicate that its sale at reduced prices was a quid pro quo to get the then chief minister's actor son (Riteish Deshmukh) established in the film industry.

On Thursday, the Bombay High Court held that the joint venture agreement signed between Mr. Ghai's Mukta Arts and the Maharashtra Film, Stage and Cultural Development Corporation (MFSCDC) in 2004 for the director's film school Whistling Woods International was "illegal, arbitrary and without authority of law". The court also stated that Mr. Deshmukh had extended "undue favours" to Mr. Ghai.


"Mukta Arts has been directed by the court to immediately surrender 14.5 acres of the 20 acres land to the State government. The rest of the 5.5 acres land, on which the institute has been constructed, can be retained by them till May 2014, for which they will have to pay rent at the market rate. The condition of delay has been put only to prevent any loss to the students, who have already enrolled for courses at the institute," Bhushan Mahadik, advocate for the petitioner, toldThe Hindu.

he State government will fulfill all its responsibility, Maharashtra Chief Minister Prithviraj Chavan said reacting to the Bombay High Court's order indicting senior Congress leader Vilasrao Deshmukh for "misusing his official position" as former Chief Minister and while allotting land to film maker Subhash Ghai for his film institute, Whistling Woods International.

However, Mr. Chavan chose not to comment on Mr. Deshmukh's role. Addressing mediapersons before his road show in the city on Friday, ahead of the upcoming corporation elections, Mr. Chavan said, "I cannot comment on Vilasrao's role without reading the court order. But our commitment for a clean government still stands."

"The decision was taken by the then administration to encourage education in the filed of entertainment. Bollywood is the capital of entertainment in the country," Mr. Chavan stated.

However, Mr. Chavan chose to take credit for the court decision, by emphasising on the governance of the United Progressive Alliance (UPA). "It is because of the Right to Information (RTI) act, implemented by the UPA, that such things are coming into public light," he said.

The division bench of Chief Justice Mohit Shah and Justice Girish Godbole was particularly severe on former chief minister Vilasrao Deshmukh during whose tenure the controversial allotment of the land, in Filmcity, took place.

"Respondent 7 (Deshmukh) has clearly misused his official position as the chief minister, and it is certainly not acceptable that a chief minister of the state will personally sign an agreement as a witness, though such agreement is completely illegal...," the bench said, adding that Deshmukh had clearly extended undue favours to Mukta Arts.

Stage & Cultural Development Corporation (MFSCDC) and Ghai's production company had entered into the joint venture for setting up of Whistling Woods. The agreement for the 20-acre plot, which was valued at only Rs 3 crore by the state administration, was signed in Deshmukh's presence in May 2004. Five agriculturists from Latur and Osmanabad, and two Goregaon residents had later challenged the allotment in separate petitions.

On Thursday, the High Court directed Mukta Arts to "surrender" the land. "Here is a case where all norms of transparency and reasonableness have been given a complete go by. The present case is a classic example of arbitrary, unreasonable and illegal decision of permitting use of available land owned by the government without any authority of law," the division bench said.

In a minor relief, the court allowed the company to retain 5.5 acres, on which Whistling Woods stands, till July 2014. It granted the reprieve because students have enroled in courses at the institute that will end only in May 2014. However, Mukta Arts has been asked to pay annual rent of Rs 5.3 crore from the date the land agreement was struck till it returns the remaining 14.5 acres.

One of the petitioners had alleged that Deshmukh favoured Ghai to boost his son Ritesh's film career. The court rejected this accusation. It, however, faulted the former chief minister in almost every other aspect. Deshmukh had said that he endorsed the land agreement "at the spur of the moment".

Rejecting his defence, the court observed: "Being the highest functionary of the executive of the State, he must be held to be aware of the legal provisions regarding public property. The defence of innocence cannot be accepted, and we decline to accept that defence that just as token of goodwill at the spur of the moment respondent no 7 (Deshmukh) signed the joint venture."


"The court has also directed Mukta Arts to pay rent on the entire property from the year 2000 onwards at the prevailing market value and to also pay interest on the rent at six per cent simple interest," Mr. Mahadik said.

The court stated that Mr. Deshmukh, as the then Chief Minister, misused his official position and illegally signed on the agreement papers, giving undue favour to Mr. Ghai's institute. It said that all norms of transparency had been bypassed in the case.

Rajendra Sontakke and four other agriculturists from Latur and Osmanabad districts had filed a public interest litigation in the court in 2009 alleging that Mr. Deshmukh had "grossly abused his power" for allotting the land to Mr. Ghai.

"We had filed the petition stating that the land which was actually owned by the Maharashtra government, was given to Mukta Arts without the government's permission. There were no competitive bids for the same. Even the board of the MFSCDC had not given an approval for the MoU [Memorandum of Understanding]," Mr. Mahadik said.

"Still, very significantly and for no ostensible and bona fide reason, the ex-Chief Minister as the Chief Minister signed the agreement below the signatures of the parties to the agreement, underneath a handwritten endorsement made by him saying 'signed before me'," he said.
The petition stated that the value of the land was wrongly calculated as Rs.325 per square metre by the MFSCDC, whereas the prevailing rate notified by the Mumbai municipal corporation in that year was Rs.3,900 per sq. m.

It stated that even the Comptroller and Auditor General had raised queries about it but it was told that the agreement will be renegotiated. "However, the existing agreement has not been rescinded till date. Action has not been taken against the officials responsible for the undervaluation," the petition stated.

"The court has directed the State government to appoint an expert committee to look into the valuation of the construction on the land. That consideration price will either be adjusted in the rent or will be payable by the government," Mr. Mahadik said.

The petitioners had also sought interrogation by the Central Bureau of Investigation in the matter on the grounds that the deal may have been struck to promote Mr. Deshmukh's son Ritesh Deshmukh in the films. It is however learnt that the court dismissed this plea.

"The court has stayed the order for six weeks so that they can appeal in the Supreme Court. But they will not be able to take any new admissions in the period for any course which runs beyond May 2014," Mr. Mahadik said.

Vilasrao Deshmukh indicted over land allotment to Whistling Woods

The Hindu - ‎33 minutes ago‎
The Bombay High Court on Thursday indicted former Chief Minister Vilasrao Deshmukh for irregularities in a joint venture for the allotment of 20 acres land to film director Subhash Ghai's film training institute Whistling Woods.

Bombay HC slams Vilasrao Deshmukh- Subhash Ghai land deal

Times of India - ‎21 hours ago‎
Bombay high court on Thursday said Vilasrao Deshmukh misused his position as chief minister to allot 20 acres at Film City, Goregaon, to film producer Subhash Ghai for just Rs 3 crore. MUMBAI: In a scathing order against former Maharashtra chief ...

Vilasrao Deshmukh misused post: HC

Daily Pioneer - ‎Feb 9, 2012‎
Validating the severe strictures passed earlier by CAG against a State-run body on a questionable land deal, the Bombay High Court on Thursday indicted Union Minister Vilasrao Deshmukh for "misusing his official position" as Chief Minister to allot 20 ...

HC blows the whistle on Vilasrao Deshmukh, Subhash Ghai

Daily News & Analysis - ‎14 hours ago‎
By Urvi Mahajani | Place: Mumbai | Agency: DNA The Bombay high court (HC) on Thursday raised serious questions about the role played by former chief minister (CM) Vilasrao Deshmukh in setting up Whistling Woods International, a film training institute ...

Chavan silent on Deshmukh's indictment

The Hindu - ‎4 hours ago‎
The State government will fulfill all its responsibility, Maharashtra Chief Minister Prithviraj Chavan said reacting to the Bombay High Court's order indicting senior Congress leader Vilasrao Deshmukh for "misusing his official position" as former ...

Bombay High Court indicts Vilasrao Deshmukh in land deal

Economic Times - ‎20 hours ago‎
The court indicted Union science and technology minister Vilasrao Deshmukh for "misusing his official position" as chief minister by showing "undue favours" to Ghai. However, the court said there was no need for a CBI probe into the land deal since ...

Blow for Vilasrao, Ghai land allotment scrapped

IBNLive - ‎Feb 9, 2012‎
In a setback for Congress leader Vilasrao Deshmukh, the Mumbai High court has ordered that the land given to Subhash Ghai's Mukta Arts in 2006 be taken back. http://ibnlive.com/livetv.

Deshmukh's role deprecable: HC

Hindustan Times - ‎22 hours ago‎
7 (Vilasrao Deshmukh) has clearly misused his official position as chief minister of a State," the division bench of Chief Justice Mohit Shah and Justice Girish Godbole observed, while disapproving the chief minister's counter-signing the agreement.

Court raps Vilasrao Deskhmukh for land deal with Subhash Ghai

NDTV - ‎Feb 9, 2012‎

Mumbai: Recent photographs of Vilasrao Deshmukh show him beaming at the lavish wedding of his son, actor Riteish, to co-star Genelia D'Souza. Bollywood's biggest and most beautiful were in glitzy attendance. But today's picture is considerably more ...

Govt to comply with High Court 'expectations' in land case: Prithviraj Chavan

Economic Times - ‎6 hours ago‎
Chavan was reacting to media queries related to the HC's indictment of then Chief MinisterVilasrao Deshmukh for the allotment of 20-acre land of Film City in Mumbai's Goregaon to Ghai for his film institute, Whistling Woods.

HC asks Ghai to return land to govt, raps minister Deshmukh

IBNLive.com - ‎Feb 9, 2012‎
PTI | 06:02 PM,Feb 09,2012 Mumbai, Feb 9 (PTI) In a scathing indictment of union ministerVilasrao Deshmukh, the Bombay High Court today held him responsible for "misusing his official position" as chief minister to hand over 20 acres of land to ...

India Bollywood director Subhash Ghai 'to return land'

BBC News - ‎11 hours ago‎

The high court also criticised federal minister Vilasrao Deshmukh for showing "undue favours" in allotting the land to Mr Ghai at a reduced price. Mr Deshmukh was the chief minister of Maharashtra when the 20-acre plot of land was allotted to Mr Ghai ...

HC scraps land given to Ghai's film institute, raps Vilasrao

Hindustan Times - ‎22 hours ago‎
The Bombay high court on Thursday ordered filmmaker Subhash Ghai to return the 20 acres allotted to his film institute in Goregaon in 2000 and said then Maharashtra chief minister Vilasrao Deshmukh "misused his official position" to allow the deal.

Law to take own course in land allotment case: Cong

IBNLive.com - ‎2 hours ago‎
PTI | 09:02 PM,Feb 10,2012 New Delhi, Feb 9 (PTI) Congress today said law will take its own course in the wake of the Bombay High Court judgement in the land allotment case in Mumbai allegedly involving Union Minister Vilasrao Deshmukh.

Court scraps Ghai-Deshmukh land deal

Indian Express - ‎10 hours ago‎
The court said that the deal to allow Ghai to set up his film institute -- Whistling Woods International -- was illegal and arbitrary. The court also indicted the then Maharashtra chief and current central minister Vilasrao Deshmukh for misusing his ...

Institute venture was misinterpreted: Ghai

Firstpost - ‎3 hours ago‎

The High Court, in response to a PIL by Rajendra Sontakke and others, yesterday ruled that allotment of land to Whistling Woods by the state (when Vilasrao Deshmukh was the Chief Minister) was without "authority of the law", and amounted to abuse of ...

HC orders Subash Ghai to return the institute's land

Times of India - ‎4 hours ago‎
The division bench of Chief Justice Mohit Shah and Justice Girish Godbole was particularly severe on former chief minister Vilasrao Deshmukh during whose tenure the controversial allotment of the land, in Filmcity, took place. "Respondent 7 (Deshmukh) ...

Mumbai edit: Discretionary power cannot become arbitrary power

Daily News & Analysis - ‎15 hours ago‎
The Bombay high court has come down hard on former Maharashtra chief minister Vilasrao Deshmukh, now Union minister for science and technology, for his role in the setting up of Whistling Woods, a film training institute, by Mukta Arts, which is owned ...

Ritesh Deshmukh's Father Under Fire for "Gross Abuse of Power"

Gather Celebs News Channel - ‎Feb 9, 2012‎
Vilasrao Deshmukh, the father of Bollywood star Ritesh Deshmukh, has come under fire in India for a "gross abuse of power" related to the land which is occupied by a film school. Whistling Woods International is a high-tech film school run by Bollywood ...

Land row: Ghai to move SC against Bombay HC order

IBNLive - ‎12 hours ago‎
Filmmaker Subhash Ghai has claimed that there was no foul play in the land deal during theVilasrao Deshmukh government. http://ibnlive.com/livetv.

Court questions land allotment to director Subhash Ghai- NewsX

NewsX - ‎Feb 9, 2012‎
Maharashtra Chief Minister Prithviraj Chavan has admited to discrepancies in land allotted to Subhash Ghai under former Chief Minister Vilasrao Deshmukh. The Bombay High court has ordered film maker Subhash Ghai to return the piece of land meant for a ...

Filmmaker Ghai lands in trouble

Deccan Herald - ‎22 hours ago‎
... to surrender the land on which his acting institute Whistling Woods International Film School is built, tacitly also putting Maharashtra's former chief minister (now Union Science and Technology Minister) Vilasrao Deshmukh also in docks.

Court orders Subhash Ghai to return 'illegal' 20-acre land that is home to his ...

Daily Mail - ‎22 hours ago‎

The court observed that Union minister Vilasrao Deshmukh had "misused his official position" while allotting the land to Ghai. 'It is not acceptable that a former CM signs an agreement which is illegal. Deshmukh has extended undue favours to Whistling ...

Ghai to return Filmcity land

Deccan Chronicle - ‎13 hours ago‎
However, the HC order is looked upon by many as a scathing indictment against former chief minister and now Union minister Vilasrao Deshmukh. The HC directed Mr Ghai to hand over 14.5 acres of the total 20 acres of land to the state with immediate ...

I am in a soup, government is in a soup, says Subhash Ghai

NDTV - ‎7 hours ago‎

The verdict delivered yesterday has, in many ways, far more serious implications for union minister Vilasrao Deshmukh, who signed off on the deal with Mr Ghai. In May 2000, Mr Deshmukh was Chief Minister when his government entered a joint venture with ...

Subhash Ghai asked to return land given for film institute

NDTV - ‎Feb 9, 2012‎

The court was hearing a public interest litigation (PIL) filed by Rajendra Sontakke and four others from Latur and Osmanabad districts alleging "gross abuse of power" by former Chief Minister Vilasrao Deshmukh in allotting the land.

Subhash Ghai to appeal to SC against Bombay HC order

Indlaw.com - ‎7 hours ago‎
The land was allotted to Subhash Ghai in 2000 by former Maharashtra Chief Minister Vilasrao Deshmukh during his tenure. As per the court order, Ghai will need to return back 14.5 acre of open land that was allotted for building his film school.

Bombay HC orders film director Ghai to return land

Newstrack India - ‎Feb 9, 2012‎
The court also asked Ghai to pay Rs 5.3 crore annually from 2000, from the time Mukta Arts entered into a joint venture with the Maharashtra Government headed by then chief ministerVilasrao Deshmukh. The court order comes in response to a case filed ...

Court asks Subhash Ghai to return land given for film institute

Deccan Chronicle - ‎Feb 9, 2012‎

The studio and the institute were built on 5.5 acres of land and Ghai was allotted an additional 14.5 acres of surrounding land for expansion in 2000 by then chief minister Vilasrao Deshmukh. The court directed Ghai to immediately hand over 14.5 acres ...

Court orders filmmaker Ghai to surrender institute land

gulfnews.com - ‎13 hours ago‎
The HC bench verdict follows a public suit filed by five agriculturists from Latur and Osmanabad districts who alleged that then chief minister Vilasrao Deshmukh had abused his power while allotting land to the filmmaker. "In the interest of justice, ...

Fingers at 15% political commission

ZEESHAN JAWED
*

Calcutta, Feb. 9: Some of the political hands that allegedly nurture and feed off the amorphous entity called "the syndicate" have been named by disgruntled operators from within.
Several syndicate members have told The Telegraph that a hefty commission to Trinamul Congress satraps is one of the main reasons forcing them to short-change contractors in New Town.
The conversations — some of which are on tape — threw up the names of some Trinamul leaders who the syndicate members said were directly or indirectly associated with the chains that monopolise the supply of building materials.
The syndicate members would not have spoken to the newspaper under normal circumstances. However, brewing discontent over the commission appears to have prompted some of them to step forward and speak up but on condition of anonymity as they fear for their safety.
For the sake of convenience, the 3,000-hectare township has been divided into three regions — Bhangar, New Town and Rajarhat — to ensure that syndicates do not fight among each other.
One name that cropped up was that of Arabul Islam, the former MLA of Bhangar. "Arabul-bhai charges 15 per cent on every consignment of construction materials that the syndicates dump at construction sites within the Bhangar block," said a man who identified himself as a close aide of the former MLA.
According to the person in his mid-fifties, the rate chart for the construction material is prepared keeping in mind the profit margin of the syndicate members and the commission. In exchange for the commission, the syndicate members are given protection from police and big promoters in Bhangar.
The South 24-Parganas block, which borders Rajarhat, is part of the upcoming township. It includes the 50 acres each the erstwhile Left Front government had allotted to Infosys and Wipro. The formal handover was held up because of protests from landowners over inadequate compensation.
Arabul had then led the agitation against the Left government's "land grab". The same leader, however, played a different role after the change of guard at Writers'.
"The government is building a road to connect the project sites to the Rajarhat Expressway. Arabul-da is overseeing its implementation so that no disgruntled landowner can hinder the work," said a close aide.
Another aide of Arabul — also an active member of the same syndicate — said the former MLA was eyeing the contract to supply materials to the proposed Infosys office in Bhangar. "He is our leader and we do not do anything without his consent," said the aide.
The aide, however, added that resentment was building up among some syndicate members over the demand for commissions. "Giving him such a big share leaves us with very little. But he has assured us that he will sit with us and negotiate the percentage after settling certain party-related issues in Bhangar," said the aide whose syndicate has over 30 members.
Several contractors have complained of dwindling quantity and quality of materials being supplied. The syndicate members claimed that they have to cut corners to accommodate the demands for commission and protect their share of the pie.
Contacted, Arabul denied not only his involvement but also the very existence of syndicates (see graphic).
Another leader whose name figured in the conversations was Sabyasachi Dutta, the MLA of New Town and vice-chairman of Bidhannagar municipality.
In the past, whenever this newspaper contacted Dutta, he had always denied having any knowledge about syndicates and their arm-twisting tactics in New Town. Today, the MLA said all he tried to do was to ensure there was no law-and-order problem and he wanted villagers also to progress (see graphic).
"He controls all the syndicates in New Town. Whenever we have any problem we just need to give him a call and he would be there by our side," said an aide who was previously associated with the CPM but switched sides after the 2008 panchayat elections that marked Trinamul's rise in what used to be a CPM fortress.
According to the aide, Sabyasachi has a political interest in retaining control over the syndicates. "All the boys are either our supporters or party workers. Sabyasachi-da has to run the party in New Town. If the party does not allow us to run syndicates, we will never associate ourselves with Trinamul. Sabyasachi-da understands this very well and gives us shelter if we run into any trouble with the police or builders," said the aide.
Another aide in Bhangar recalled how "100 of them" met Sabyasachi in November when there was confusion over territorial demarcation between syndicates. "He suggested we should oppose anybody who tries to stop us from supplying. According to him, that was the only way to solve this problem," said a syndicate member.
At least one minister's name was also mentioned by some syndicate members. Purnendu Bose, labour minister and Rajarhat MLA, does not get directly involved in matters related to syndicates.
"Several of his close associates like Babai Bose are very powerful in Rajarhat and they control the supply of construction materials," said a syndicate member.
Some syndicate members suggested Trinamul functionaries down the ladder also control the levers. They cited the name of Prabir Kar , Trinamul block president in Rajarhat, as an example. "His men conduct business in Rajarhat," said an aide.

http://www.telegraphindia.com/1120210/jsp/frontpage/story_15117142.jsp

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