Gujarat state exchequer faces loss of around 1200 crore
Reply to an application under RTI has disclosed that the state government of Gujarat has allotted Abad dairy's land for Re one per square foot on 35 years lease to the Mumbai-based S E Transstadia Private Ltd company for building a sports complex. This lease has resulted into loss to the tune of Rs 1,195.20 crore.
The state government had signed a Memorandum of Understanding (MoU) with the company in the 2009 Vibrant Gujarat summit.
The reply also revealed that a higher price was suggested for the land by the state revenue department. However, the state government overlooked the revenue department's suggestions by giving away the land at Re 1/- per sqft to the private company, which would now pay only Rs 2.57 crore for the land.