Friday, August 20, 2010

Cabinet goes soft on Emaar deal probe

HYDERABAD: The state cabinet went easy on the Emaar-AP Industrial Infrastructure Corporation (APIIC) housing project controversy on Thursday, with the chief minister asking his cabinet colleagues not to ‘publicly discuss’ the Emaar issue till the three-member internal committee of AIIC submitted its report.

The report is likely to be submitted to the government within a week. TOI had on Wednesday reported that the state government was not interested in delving deep into the issue and would settle for a probe by an internal committee instead of the CBI.

"The less talked about the issue, the better," the chief minister is believed to have told his colleagues admitting that the high command wanted to know about the scam and the potential damage it could do to the Congress in the state.

But on record, information minister Geetha Reddy said that the state government has instructed APIIC to constitute an ‘expert committee’ to probe irregularities committed by Emaar and its group companies. Addressing the media after the cabinet meeting, she said, chief minister K Rosaiah ordered APIIC to constitute an ‘experts committee’ to look into the matter. "Necessary action will be taken in accordance with the report," she said. The experts are internal officials of the corporation, not higher than the rank of general manager. "The internal panel is likely to look at the prices at which plots were registered and the market prices that prevailed at that time. If they find a dichotomy, Emaar MGF, the company that had been given the development rights might be asked to explain the difference and possibly even be asked to cough up the difference," an analyst said.

Meanwhile, in a bid to defuse the situation, Emaar group representatives have expressed a desire to meet the CM and talk to him, face to face. But the chief minister instead told them to interact with APIIC officials. Following Rosaiah’s diktat, Emaar officials met APIIC representatives but in the presence of ministers Geeta Reddy, Vatti Vasant Kumar and Botsa Satyanarayana.

Notwithstanding Rosaiah’s advice, the issue was raised by health minister D Nagendar and IT minister Komatireddy Venkat Reddy in the cabinet, who insisted that the government treat the matter with utmost seriousness as the high command was also asking about the facts. Both the ministers raised several doubts about the role of officials and the need for greater clarity on the issue as it had been widely reported in the media and allegations that government had been cheated of money.

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