A panel set up by the Department of Telecommunications has recommended that the government pump surplus land controlled by Tata Communications into a realty company, the first of three possible methods that had been proposed for the separation of the land from the company.
The three-member panel investigating the delay in the demerger of the 773 acres of surplus land after the privatisation of the company has also held the Tata Group responsible for the impasse. It has said the government must acquire 51.12 per cent stake in this realty firm and nominate majority directors in it.
In its report, the panel stated that from the beginning, the Tata Group?s approach was to resist the demerger on the pretext of various issues. Also, the company tried to push through other alternatives such as sale of surplus land by public auction, retention of surplus land by VSNL, etc.
The report also said that according to the agreement between the government and the Tata Group, alternative methods for the separation of the land need not be explored until it became apparent that demerger was not feasible.
Instead, the committee said, the government must compulsorily exercise the demerger option and house the land in a separate company. It further added that DoT?s earlier proposal for auctioning the land, as it would fetch maximum benefits to all shareholders, was not supported by any due diligence on record.
