PMO Orders Maharashtra To Probe Mahagenco Land Acquisition Irregularities
The Prime Minister’s Office (PMO) has directed the Maharashtra government in Mumbai to investigate alleged irregularities in a Rs 110-crore compensatory afforestation land acquisition by the Maharashtra State Power Generation Company Ltd (Mahagenco). The state government has subsequently demanded a detailed report from the power utility.
The action follows a complaint submitted by Chhattisgarh-based activist Naresh Chandra Gupta. The complaint concerns the acquisition of 214.869 hectares of private land required for compensatory afforestation to secure forest clearance for Mahagenco's Gare Palma Sector-II coal block in Chhattisgarh.
According to the complaint, several land valuation and certification records relied upon for the transactions carried only local-level revenue endorsements and lacked higher-level verification. Gupta also alleged that detailed historical title verification of the land parcels was not carried out before the purchase.
The complainant further raised concerns that some acquired land parcels were linked to interconnected entities and had previously been used as solvency assets in commercial contracts. Additionally, the complaint alleges that several land records contained identical site maps despite relating to different survey numbers, raising doubts about the authenticity of the documentation and whether proper ground surveys were conducted.
The Expression of Interest (EOI) process used to identify the land was also questioned. The complaint claims the notices received limited public visibility because they were published in low-circulation newspapers, restricting wider participation.
Mahagenco has denied all allegations of irregularity. The utility stated that suitable government land for compensatory afforestation was unavailable, prompting the identification of private land following advice from forest authorities.
According to Mahagenco, they procured approximately 530 acres of land at a total cost of around Rs 93 crore, rather than the Rs 110 crore alleged. The utility maintained that all acquisitions were completed through legally registered sale deeds after obtaining approvals from competent authorities.
Regarding the EOI, Mahagenco stated that the notice was published in government-empanelled newspapers in Raigarh and Raipur, as well as on the websites of Mahagenco and its consultant, resulting in four proposals.
The utility added that the land received a suitability certificate from the Divisional Forest Officer in Raigarh and a no-objection certificate from the district collector before purchase. Following mutation and transfer to the forest department, the land was notified as Reserved Forest by the Chhattisgarh government in December 2022.
State officials said the inquiry initiated after the PMO referral will examine the allegations, supporting records, approvals, and Mahagenco's response before reaching any conclusions.
