Academia Case

The NICE Road project is based on a Memorandum of Understanding (MoU) signed on 20 February 1995 between the Karnataka Government and the consortium of companies, namely Pune-based Kalyani Group, Pennsylvania-based SAB Engineering, and Boston, Massachussets-based Vanasse Hangen Brustlin (VHB). The consortium registered a special purpose vehicle (SPV) called Nandi Infrastructure Corridor Enterprises Ltd. (NICE), on 16 January 1996, under the Companies Act, 1956, for the development and implementation of the project. We are trying to understand anomalies in the "Framework Agreement (FA)" signed between NICE and Karnataka Industrial Areas Development Board (KIADB). One of the contentious issues pertaining to governance in this project is that the government, as per FA, notified 20,193 acres of land for acquisition under the KIADB Act whereas only 18,313 acres of land had been initially authorized. The additional requirement for 1880 acres land for this project is not properly and transparently justified in any public document. We are also analyzing certain public interest litigations (PIL) filed in this regard.

We are trying to understand different provisions of the KIADB Act 1966 under which land acquisitions were done. The land acquisitions were done for dual purpose, the development of a four-lane (convertible to six lanes) expressway (including peripheral road, link road, and attendant facilities in and around Bangalore) and five townships between Bangalore and Mysore. A Government Order (GO) No. PWD 32 CSR 95 was passed on 20 November 1995, authorizing acquisition of 18,313 acres of land (5,110 acres for expressway and 13,203 acres of township land.) We have found that the land requirement aspects of the project were not well-received, especially by those who had to give up their land. According to an estimate by Environmental Support Group (ESG), the project was likely to dislocate over 1,500 farming families due to direct displacement and up to 200,000 persons indirectly. Indirect displacement includes those who lost control over natural and environmental resources, and are thereby deprived of the traditional means of livelihood, to be distinguished from direct displacement where land, property, or employment is lost. We will also be legally analyzing this project with respect to forest conservation because one section of this expressway (peripheral road from Hosur) passes through the B.M. Kaval forest area. We have found that Benami land around the expressway corridor had led to increase in personal wealth of many individuals. Denotification/notification of land was allegedly done using political link contravening legal norms. We are trying to study these issues in greater detail.

Apart from this we will be discussing other governance issues that led to huge delay in the execution delivery of the project. We would also like to explore the lack of transparency and conviction that contravenes the norms of good governance.