TAKING cognizance of the report published in ‘The Hitavada’ about the legal notice served to Forest Development Corporation of Maharashtra (FDCM) by Essel Group for termination of joint venture agreement signed for development of Gorewada International Zoo, the auditors empanelled by Comptroller and Auditor General of India (CAG) have taken a serious note of the issue. Sources said that, if the auditors encounter any exceptions in implementing the project and other related procedures, they may rap FDCM and Maha Vikas Aghadi (MVA) Government.

 

EsselWorld Leisure Private Limited (ELPL), a subsidiary of Essel Group, in the legal notice to FDCM, categorically stated that, the issues raised by it were neither redressed nor responded to with any concrete plan of action. Despite aggravated non-cooperation by the FDCM, ELPL continued to incur expenses in good faith in the interest of the ambitious project, sources said, adding that, there was alleged material breach of commercial and financial understanding between them as joint venture partners. Though the MVA Government earlier made statements that the Law & Judiciary Department had given green signal to terminate the agreement with ELPL for allegedly flouting the tender conditions, the impasse continued. Left with no option, the ELPL served the notice to FDCM asking for termination of the agreement for its failure to rectify defaults in the project, sources added. The notice stated that, the lawful dues on account of expenditure incurred for the joint venture were not repaid to ELPL.

 

This led to not just erosion of trust, but also caused severe financial loss to ELPL on various counts. Moreover, none of its invoices to the tune of Rs 80 lakh and GST thereon submitted recently were even considered for payment, sources said. FDCM and ELPL had signed an agreement to form a joint venture company (JVC) to implement Rs 452 cr Gorewada International Zoo Project. FDCM Esselworld Gorewada Zoo Private Limited, a JVC, was then incorporated on November 14, 2018. The JVC was set up under public private partnership (PPP) mode of financing, with Government stake at 51 per cent and Essel 49 per cent. Development of 28.37 ha non-forest land for commercial purposes was one of the major components of the entire project. Due to the apathetic attitude of the MVA Government, ELPL had reiterated its desire to get disassociated with Gorewada International Zoo Project. It had also called upon the FDCM to settle all its outstanding claims at the earliest by terminating the joint venture agreement dated September 6, 2018, concession agreements of February 13, 2019 and March 28, 2019 for tourism infrastructure complex.