More trouble for Subhash Ghai as CAG raps AP government over land allotment

HYDERABAD: Filmmaker Subhash Ghai's Whistling Woods International Limited (WWIL) is facing trouble in Andhra Pradesh as well with the Comptroller and Auditor General rapping the state government over allotment of 20.10 acres of prime land to the institute in total violation of the rules.

Ghai, who suffered a setback in the Supreme Court over a similar land deal in Maharashtra, is locked in a legal tangle in the AP High Court as well over the land allotment.

The CAG in its latest report on land allotments in AP, related to the Y S Rajasekhara Reddy government tenure, found fault with the allotment of land for WWIL "in violation of AP Ancient and Historical Monuments and Archaeological Sites and Remains Rules 1960," which prohibits alienation of lands forming part of historical sites.

Based on a writ petition filed by a private person, the AP High Court had in January 2010 suspended the state government's order (dated August 19, 2009) virtually gifting 20.10 acres of land to Ghai.

The case is pending disposal even as the state government is set to review the allotment in the light of the High Court order as well as the CAG's observations, official sources in the Revenue Department said.

The land allotted to WWIL in survey Nos. 173 and 178 at Ibrahimbagh village under Golconda mandal in Hyderabad district was adjacent to a protected monument (Premamati Mosque).

"While the market value of the land was assessed by the Hyderabad district Collector at Rs 4.84 crore per acre, the government allotted the land at Rs 2 crore per acre. The lease rent was fixed at 0.2 per cent of the market value at which the land was allotted (Rs 2 crore per acre) for the first three years."

"The allotment was made through APIIC for establishing a world-class training institute of film, television, animation and media arts. This was followed by a lease agreement in October 2009, between APIIC and WWIL for allotment of 17.01 acres to WWIL for a tenure of 66 years, renewable for a further period of 30 years," the CAG said in its report.