The site in Visakhapatnam, famously called Daspalla Lands, is worth anywhere around ₹2,000 crore in the open market.
Published Oct 03, 2022 | 7:41 PM ⚊ Updated Oct 03, 2022 | 7:43 PM
Visakhapatnam beach road. (Wikimedia Commons)
The anatomy of how a proxy company owned by a YSRCP MP got to develop prime land in Visakhapatnam is making the Opposition cry foul, while public-spirited people are seeking a CBI investigation into it.
Ex facie, the way the ₹2,000-crore-worth 15 acres of Daspalla Lands in the port city slipped through the state government’s hands appears quite normal and innocuous. But the Jana Sena smells a scam and blames the government for allowing it to happen.
The Opposition parties and social activists argue that the government deliberately did not present a factual position in the courts, and intentionally delayed filing responses, which led to the most valuable land in a city that is tipped to be the executive capital of the state slipping through its hands.
While successive state governments fought in court over the ownership of the land with the members of the Daspalla family for more than two decades, the current state government apparently let go of it.
Now, a recent memo issued by the government citing a Supreme Court judgement has stirred the hornet’s nest.
“The apex court has disallowed the government’s petition, as a result of which this land, the value of which may run into an astronomical figure at today’s market prices, will be appropriated by some private parties. This is a highly disturbing development,” former Union secretary and retired senior bureaucrat EAS Sarma told South First.
“I am not sure whether the government ensured that all possible documentary evidence along with compelling arguments had been placed before the apex court to press its claim. I demand a thorough, independent enquiry into this, as the people have a stake in the land,” he added.
Sarma also wrote to state Chief Secretary Sameer Sharma, demanding a CBI probe.
“The government should order an investigation into this, preferably by an external investigating agency like the CBI, so that all the relevant facts may come to light without delay,” Sarma said in the letter written to the chief secretary.
Daspalla was an erstwhile princely state in Odisha, and its descendants own some properties in Visakhapatnam.
One of the descendants of the Daspalla family, Rani Kamala Devi, approached the state high court in 2000 claiming ownership of the land spread in town survey numbers 1027, 1028, 1196 and 1197 of the Waltair ward.
Devi approached the high court challenging an order issued by the state Commissioner of Survey Settlements & Land Records, which said the land belonged to the government.
Subsequently, the government put the land on a “Prohibitory List” under Section 22A of the Registration Act, which effectively disallowed registration of the land.
After a high court judgment in favour of Devi, the government filed a Special Leave Petition (SLP) in the Supreme
Court. The Solicitor General of India was engaged in this case.
The apex court dismissed the government’s SLP in 2012 on the grounds of delay and also on merits.
“There is a delay of 109 days in filing and 570 days in refiling the Special Leave Petitions for which the explanation offered is not satisfactory. That apart, even on merits no case is made out. The Special Leave Petitions are dismissed on the ground of delay as also on merits,” said the Supreme Court’s order.
A curative petition was also dismissed by the Supreme Court in 2014.
However, the then government had not removed the Daspalla land from the prohibitory list.
It was a memo issued by the CCLA office on 27 September this year to the Visakhapatnam collector — to take necessary action — that got the Daspalla Lands removed from the prohibitory list.
Fingers are now being pointed at the ruling party leaders as the Daspallas — who had won the case — had entered into a commercial agreement with a realty firm to develop the land.
A balance sheet of Vizag Coast Resorts LLP which is now called Assure Estates Developers LLP. (Supplied)
Opposition parties have been alleging that proxies of YSRCP general secretary and Rajya Sabha member V Vijaysai Reddy had entered into an agreement to develop the site, which has the potential to fetch thousands of crores of rupees.
“A March 2021 balance sheet of Vizag Coast Resorts LLP, which is now called Assure Estates Developers LLP, had shown that it received an unsecured loan of ₹4 crore from Avyaan Realtors LLP. Vijaysai Reddy’s daughter and son-in-law are the directors of Avyaan Realty. It is the same Assure Estate Developers LLP that had signed an agreement to develop these Daspalla lands,” alleged Peethala Murthy Yadav of the Jana Sena.
“Assure Realty signed the development agreement in June 2021, with pending registration, by paying around ₹9.5 crore. After some time, these lands are removed from the prohibitory list. There is something fishy if the dots are connected,” claimed Yadav, flashing the documents related to the balance sheet of Vizag Coast Resorts LLP.
S Arun Dev, the advocate on behalf of Rani Kamala Devi, said the Maharani of Daspalla and her son Digvijay Chandra Dev Bhanj are the lawful and rightful owners of the Daspalla Lands.
Despite that, the registration of the properties was stalled for a long time due to certain vested political interests.
“The Daspalla family members entered into development agreements with Assure Developers LLP to develop the Daspalla Lands. The agreement with Assure developers is purely at our will and based only on commercial consideration and without any pressure, coercion or threat,” the erstwhile royals said in a statement.
“It is informed that neither the Daspalla family nor other purchasers have any political affiliations with any political party or more particularly with Vijayasai Reddy or his family members and none of us was ever approached by any politicians regarding our lands,” they added.
“Any transactions of the Daspalla family and other purchasers of the land are purely their personal transactions and we request one and all not to involve our names or add any political colour to our land,” they said in the statement.
