Maharashtra, Sept. 15 -- The Revenue Department of the Government of Maharashtra has formed an Special Investigation Team (SIT) to probe the allotment of land to Premier Automobiles in 1960s. The automobile manufacturer which is now under liquidation had been allotted 174 acres of government land in Kalyan Taluka, located on outskirts of Mumbai, between 1962 and 1965. Back then Maharashtra state had just been formed and the government was in desperate need of industry and eager to offer job opportunities in far flung areas.
The order to form a nine miner SIT was passed in a meeting chaired by Maharashtra State Revenue Minister Chandrashekhar Bawankhule on August 19. The minister was hearing a complaint regarding transfer of government owned Gurcharan (cattle grazing) land parcels in multiple villages in Kalyan taluka, Thane district to Premier Automobiles, which shut down several years.
Premier Automobiles was founded in 1940s by prominent industrialist, Walchand Hirachand of Solapur, Maharashtra. It produced one of the first Indian made cars in 1947. In 1960, after Maharashtra was formed, there was very limited industrial activity in our state. Hence, with a view to create employment in far flung area of Kalyan, the state government asked Premier Automobiles to expand its manufacturing setup and create infrastructure like housing for its workforce. The Kalyan taluka plant worked as a feeder to Premier's existing plant in Mumbai. It also had vast tracts of land used for housing the workers and employees.
In 1990s, after liberalization, Premier Automobiles could not compete against foreign competition and went into big losses. In 1997, it stopped manufacturing its iconic Premier Padmini. Unable to sustain, combined with labour problems, Premier sold its land parcel to various parties to pay off govt dues and other creditors. Out of 174 acres, 57 acres was acquired by Runwal builders, 55 acres by Lodha Group and 41 acres by Sundarniwas Properties. Various govt bodies also own 13 acres.
The SIT has been given 30 days to inquire into five aspects - examination of original status and transfer of land to Premier Automobiles; conversion of land parcels from Class II to Class I; validity of 7/12 extracts and mutation entries; sale transactions to third parties; and recommend action against those, if found responsible.
The order has caused commotion in the industrial circles. Many are questioning if setting up plants in Maharashtra is sensible anymore.
At a time when one arm of Maharashtra government is desperately trying to bring industry to the state and even signing deals with foreign investors at the World Economic Forum, the probe into Premier land allotment has come as a shocker to many. The fact that it comes good 60 years after the deal is even more surprising.
Published by HT Digital Content Services with permission from Millennium Post.