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22 Apr 2024, Edition - 3205, Monday

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CODISSIA Industrial Park – Yet to seek permission for change in land use

Covai Post Network


Investors, banks led up the garden path and made to part with crores of Rupees in what is alleged to be a fraudulent activity.

Documents from the Tamil Nadu government expose the misrepresentation of the CODISSIA Industrial Park Ltd that its licenses were pending approval with the government.

Covai Post had earlier exposed the alleged irregularities in the CODISSIA Industrial Park Ltd, a private entity which collected funds from CODISSIA members for seemingly questionable investments. Under investigation by the serious frauds office, CIPL it seems has not even obtained basic approvals from state government to change the land use from agricultural to industrial.

Documents in possession of Covai Post show that the The State Environment Impact Assessment Authority has returned the application filed by the CIPL on 29.09.2015 for Kallapalyam citing lack of plans, approvals etc but was returned on 17.2.2017 due to the absence of these documents. This is the second time that the appeal for environment clearance is being returned for the same reason, the earlier on 22.8.2016.

Application for Mopperipalyam site was not submitted at all for environment impact assessment, the authority has said.

With most of the land located in and around the Kousika River basin it is a moot question if approval will be granted, sources added

Reports in a section of the press in December had quoted that the Directors had claimed that approvals were pending with the Minister concerned. But in reality, this is far from the truth, certain members of CODISSIA allege.

In this whole episode, the role of the consortium of banks that has lent a sum of Rs 155 crore to the company has come under scrutiny. Documents available with Covai Post indicate that the banks including the RBI have been informed of the shenanigans of CIPL and all of banks.

An incestuous relationship between CODISSIA and CODISSIA Industrial Park Ltd has ensured that the funds available with the Society are now being tapped to desperately keep the CIPL afloat, said Mr AV Karthikeyan, one of the founder members of CODISSIA and the complainant in this case.

A sum of Rs.3.87 crores of the Society funds has been diverted to the Company for the purchase of an encumbered agricultural land at roughly three times the cost for which the land was purchased from the funds contributed by members of CODISSIA, he alleged.

When the agencies were alerted, attempts were made by CIPL to cover up the omission and commission by fudging accounts and using different nomenclatures at different places and stymieing all attempts to obtain information, the complainant alleged.

The Executive Committee members who have invested in the CIPL are now also liable to be criminally charged under different sections of IPC, Societies Act, and TANPID Act, CODISSIA members under conditions of anonymity alleged.

Repeated attempts made by Covai Post to talk to the Directors of CIPL went in vain as they refused to comment.

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