The promoter of the Rs 2,250 crore (Rs 22.50 billion) Banagalore-Mysore expressway project alleged on Tuesday before the Supreme Court that former prime minister H D Deve Gowda and his son H D Revanna, a minister in the Karnataka Cabinet, were trying to scuttle the project for political reasons.
"All sorts of trouble and pressure was brought about on the company which was unable to execute the project," a bench comprising Justice Ruma Pal, Justice Arijit Pasayat and Justice B N Srikrishna, was told by senior advocate Dushyant Dave, who appeared for the promoter company -- Nandi Infrastructure Construction Enterprises (NICE).
NICE alleged that till now the state government has not rescinded the agreement for execution of the project entered in in 1997.
The counsel claimed that Deve Gowda had written a letter to his son Revanna, who is Karnataka's public works department and energy minister, against the project, and later a committee was formed to review the project. The committee said that 2,450 acres of land or any surplus land should not form a part of the project.
The company contended that for developing the township and providing interconnectivity these lands were required.
Dave alleged that Gowda was trying to scuttle every project and referred to the resignation of Infosys chairman N R Narayana Murthy from the committee that was working on the construction of the Bangalore international airport.
However, senior advocate, Anil Divan, appearing for the Karnataka government, objected to the allegation contending that Dave was going beyond the issue in question before this court.
Supporting NICE in its grievance against the state government, an industries association submitted that several projects have been pending since 1992 and they should be allowed to continue without delay.
"The father and son cannot stop the projects," senior advocate Mukul Rohatgi, appearing for the association said.
When the bench asked about the stand of state government on the expressway project, Divan said the government was in favour of the execution of the project if NICE did not ask for 2,450 acres of surplus land.
The Apex Court, which had allowed the authorities to go ahead with development of project with a condition that the land earmarked for the purpose would not be alienated, on Tuesday modified its order permitting the promoter to sell, alienate and mortgage land in its possession for the execution of the project.
The bench said that the alienation, sale and mortgage of land would be subject to the outcome of the appeals pending before it.
The Apex Court clarified that the prima facie issues raised in the appeals were considered by the orders passed by the Division Bench of the Karnataka High Court in 1998 and affirmed by it in 1999.
The bench listed the matter for further hearing on January 10.
The high court had quashed the government order constituting the expert committee and review committee to review the project and probe whether irregularities had taken place in allotment of land for the project, being executed by NICE.
The state had filed an appeal against the order for quashing the expert committee.