The Hindu Business Line : RDO orders ‘status quo’ on Dunlop land sale

Chennai, Aug. 17 An interim order following an RDO (Revenue Divisional Officer) enquiry into the sale of Dunlop India Ltd land here has stopped the company and the buyer, a Chennai-based developer, Mr V.N. Devadoss, from taking any action on a disputed portion.

The order has also questioned the right of Dunlop India to sell the land allocated to it by the Tamil Nadu Government in the 1950s specifically for the purpose of setting up a factory.

Dunlop India, a sick company since 1998, under the purview of BIFR, sold over 60.86 acres for Rs 24.34 crore to Mr Devadoss in 2004. Dunlop was then under the Chhabrias. Mr Devadoss, who is the Managing Director of VGN Group of companies with interests in real estate and construction, bought the land through an auction conducted by an asset sale committee constituted by the BIFR. Subsequently, in 2005-end the Kolkata-based Ruias acquired Dunlop from the Chhabrias.

In July, when the buyer initiated steps to develop the property, Dunlop’s present management opposed the move. Dunlop India maintained that over eight acres land was within the factory premises and that loss of the area would affect the operations of the factory. The company also suspended operations on August 7 citing the reason.

Govt order

The State Government then ordered an RDO enquiry into the issue following a complaint from the Ambattur Police Station. In the interim order passed on August 11, the RDO has said that ‘status quo’ should be maintained in the disputed portion.

The order pointed out that the State Government had acquired land under the Land Acquisition Act of 1894 and allocated the land to Dunlop India in 1956 and 1958.

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