NAGPUR : Even before Maharashtra Airport Development Company ( MADC ) goes ahead with sending termination notices to non-starters in Mihan-SEZ, some of the investors have already approached it with requests to get their money back. On Sunday, it was decided to slap termination notices to 43 companies which were allotted land in the special economic zone (SEZ), but had not gone ahead with any development on the site. Companies like IT major HCL have sent a request to the MADC last month saying that it can develop the project only in a part of the land and wanted money back for the rest. HCL was among the early investors which had got the land in 2006-07, when RC Sinha, the retired IAS officer from the state, headed MADC. Sinha resigned abruptly in 2009. If HCL has to be given back the money, it will be a huge drain on the MADC resources. HCL was allotted 140 acres of land within Mihan-SEZ apart from 30 acres outside. Out of this, it wants to set up the project only in 50 acres of land within the SEZ. HCL was allotted land at a rate of Rs44 lakh per acre. In case it has to be paid back, MADC will have to shell out Rs40 crore for the remaining SEZ land and another Rs24 crore for the non-SEZ plot. This may be close to MADC’s yearly income from selling land in the SEZ, said a source. HCL is ready to get the money back in phases, the source said. Leela Ventures, which was allotted 3 acres of land for Rs60 lakh an acre, has also sent a letter seeking refund, apart from one more company calling up the MADC. Sources, now working out details of the termination notice, say that many of the old agreements with investors does not have a specific termination clause. However, even as there is no termination clause , the agreements between MADC and the investors specify that the project has to be completed within three years. There is a provision to get extension also. But only those who had started the work had sought an extension. Many in the list have not even bothered to apply for an extension, the source said. The termination clause could have cleared doubts over repayment of money and other aspects, say sources. The termination clause was included only in the later deeds signed over a year ago. Majority of the companies to be issued a termination notice had taken the land during Sinha’s regime, say sources. The matter may now have to be put up before the MADC board, which will decide the future course. The investors will first be given a chance to submit a plan for starting their project indicating a specific time frame. On failing to do so, the allotment may be cancelled, said another source. Among the 43 companies which will be issued termination notice, around 20 have paid fully for the land. Among the bigger ones which have not paid entirely include Wipro Limited. The company has been allotted 117 acres of land in the SEZ. However, it has made only 20% of the payment, a source said. Only the land proportionate to the amount paid was allotted to such investors, say sources, Though the master plan shows the entire land as allotted. Most of the companies which did not start the work cited global recession of the 2008 as the reason. Among those who have started the work include Mahindra Satyam, TAL, Infosys, and TCS. IN A NUTSHELL No termination clause in old agreements with investors Deeds signed during RC Sinha’s regime Deeds specify time frame for completing project Many non-starters did not bother to apply for extension despite a provision MADC may first ask the non-starters to submit a fresh plan Refund of money to investors may be a huge drain on MADC funds

