Businesses in the red have no room on prime realty, Adityapur Industrial Authority Development Area (Aiada) has decided.
Autonomous body Aiada, which surveyed the health of 1,200-plus units under its command area, cancelled land allotment of 22 closed units early this April, in the new fiscal year.
Since then, the 22 have moved Jharkhand High Court, seeking relief from the Aiada axe. But Aiada hopes amendments underway in Jharkhand’s industrial policy (paragraph No. 12 specifically related to land allotment), will work in its favour. Then, Aiada will allot recovered land to fresh investors.
Aiada secretary Srivendra Singh said findings of their survey, conducted to determine which of the units were sick or virtually closed, helped them zero in on 71 units in April first week.
Singh said they slammed the 71 for “misuse of industrial land”.
“We served notices to 49 units to vacate Aiada land and cancelled plot allotments of 22 others. The first group of 49 units approached Aiada managing director A.P. Singh, but the 22, whose land allotment was cancelled, moved court against Aiada,” Singh said.
As matters now stand, the 49 units may or may not retain industrial land, but the 22 who moved court are certain to lose it, said Singh.
This decision is more about pragmatism than petty revenge, says Aiada.
Acute land crisis stopped Aiada from allotting new plots for four years on the trot. Aiada was also forced to say no to over 300 applicants. Since 2011, it stopped accepting applications for land.
To work out a solution, Aiada started a drive to identify sick or completely closed units to allot the industrial land to fresh investors.
In the process, though it seriously ruffled the feathers of Adityapur Small Industries Association (ASIA), an outfit that safeguards entrepreneur interests, Aiada still succeeded in identifying the 71 sick and closed units.
The Aiada secretary added the fresh industrial land allotment policy, now in its final stages, will help them strengthen their case. “Once the new industrial land allotment policy is introduced, we will be in a position to successfully and quickly contest cases pertaining to land possessed by 22 closed units,” Singh said.
A senior functionary of ASIA, however, disagreed.
He said though Aiada had wanted the owners of closed units to return the land, entrepreneurs should “get a second chance”.
“Entrepreneurs whom Aiada is targeting for land have devoted a lot of their time and energy to establish their production units. They must get another chance to revive their business. If Aiada did not prove sympathetic to them, Jharkhand High Court must,” the ASIA functionary told The Telegraph.
Whose side are you on, the Aiada or the ASIA?