Minister Kumaraswamy continues attack on CM Shivakumar over Bidadi, NICE issues

Kumaraswamy renews allegations against CM Shivakumar

Union Minister for Heavy Industries and Steel HD Kumaraswamy has intensified his attack on Karnataka Chief Minister DK Shivakumar over the NICE toll road and Bidadi Township project, leveling fresh allegations of a benami takeover attempt and government collusion.

Speaking at the JD(S) office in Bengaluru on Monday, Kumaraswamy alleged that Shivakumar was seeking to acquire the NICE project through benami entities and said he would release documents next week to substantiate the charge. "According to the information available to me, the Chief Minister himself is trying to acquire NICE through benami companies," he said, as reported by The Economic Times. He further alleged that Shivakumar was directly involved in transactions concerning NICE and accused the government of attempting to facilitate a takeover of the Bengaluru-Mysuru Infrastructure Corridor (BMIC) project.

Kumaraswamy, who represents Mandya in the Lok Sabha, also challenged Shivakumar to disclose who was acquiring the project and what his links were with its promoters.

Allegations of land scams and agreement violations

The Union minister described the NICE project as potentially among the country's biggest land scams, claiming that the Framework Agreement had been substantially violated, including provisions related to land acquisition, road construction, and toll collection. He said farmers whose land was acquired two decades ago were still awaiting compensation, while NICE had sold portions of the acquired land. He also claimed the company was required to construct 111 km of roads but had built only around 5 km.

These allegations echo remarks made by Kumaraswamy at a media interaction in Haradanahalli on Saturday, where he said the leader who formed the BMIC project should be held responsible for the current crisis. He noted that JD(S) supremo HD Devegowda had signed the MoU with NICE when he was chief minister, but successive governments allegedly "paved the way for looting money" in the name of the project.

Kumaraswamy also claimed that senior officials had misled the court and that the project was ultimately abandoned. He accused the government of turning a blind eye to NICE continuing to collect toll and hiking fees exorbitantly, and reiterated his appeal to the public not to pay the toll.

Historical context and political feud

According to ThePrint's analysis, the NICE project was approved in 1995 during Deve Gowda's term as chief minister, envisioned as a corridor connecting Bengaluru and Mysuru—two of the state's largest urban centres, about 140 km apart. The existing highways SH-17 and SH-86 were narrow and passed through towns, prompting the need for a new corridor.

On 20 November 1995, the Gowda-led government passed the order to implement the corridor and signed an MoU. The project required acquiring 8,175 hectares (about 20,193 acres) of land and envisaged a 41-km peripheral ring road, now an operational toll road. Plans also included five townships covering 70,100.96 hectares, including 140 revenue villages, 54 part villages, and Maddur Town.

ThePrint notes that the BMICP has been engulfed in political controversies and legal entanglements. Kumaraswamy has alleged that out of the 111 km sanctioned, only 5 km were built. He quoted: "For 20 years, farmers’ land has been taken for the NICE Road project without paying them compensation... This is one of the worst scams in the history of Karnataka."

Ashok Kheny, a former legislator who heads NICE, has long been at odds with Deve Gowda, and Kumaraswamy has taken the feud forward. ThePrint observes that the stretch from Bidadi to Mysuru is called the Vokkaliga belt, a concentration of the dominant land-owning agrarian community—a key support base for JD(S). The agitation provides an opportunity for Kumaraswamy to revive the party, whose identity is seen as fading and overshadowed by the BJP alliance.

Government response and legal framework

Public Works Minister Satish Jarkiholi has said the toll issue on NICE Road must be resolved within the legal framework. He noted that the government had granted a 30-year concession for toll collection, of which 20 years have already passed, as reported by The New Indian Express. The government has asked NICE not to increase toll excessively, and the company has approached courts, he added, saying the government cannot go back on its decision.

Kumaraswamy, however, questioned the basis of Jarkiholi's claim. "Which agreement are they referring to?" he asked, according to The Times of India, alleging that the government was protecting the company rather than safeguarding the interests of farmers and the public.

Kumaraswamy also claimed that the company had not invested "even Rs 5" in the project and that government land leased at a nominal rate had been used as collateral for loans from ICICI Bank. He accused the government of remaining a silent spectator to the alleged misuse of public assets.

Court observations and public reaction

The dispute has drawn in the Karnataka High Court. Kumaraswamy noted that a Division Bench had made strong observations about the NICE project, which were published in newspapers as an advertisement. He insisted the advertisement was based on court observations and was not fabricated. The Times of India reports that the court observed that toll collection on NICE Road was illegal, but the government failed to act.

Kumaraswamy said the court order was against the government, not against Ashok Kheny personally. He denied provoking people over toll collection but said people should have risen against it by now. The Lokmat Times reports that daily confrontations have occurred between motorists and toll plaza staff, with drivers refusing to pay after Kumaraswamy urged motorists not to use the road.

"I am not instigating JD(S) workers against the NICE toll. The people of the entire state must rise. Such a big scam has taken place," Kumaraswamy said, as quoted by Lokmat Times. He described the project as one of Karnataka's biggest scams and alleged that successive governments and officials had colluded with NICE, "rolling out a red carpet" for the company's owners.

Bidadi Township and other issues

Kumaraswamy also criticized the state government's handling of the Bidadi Township project, saying it had no clarity over the project and describing it as a ploy to loot money. He criticized the Cabinet's decision to form a committee headed by a retired judge to prepare a report on the township.

He accused Chief Minister Shivakumar of misleading farmers by promising compensation of Rs 3 crore per acre, against the Rs 12 crore promised earlier, as reported by The New Indian Express. Kumaraswamy, a former chief minister himself, said he cannot stay quiet about the current CM's hasty decisions.

He also stated he was ready to support any government that provides good governance, and commented on the controversy surrounding the induction of Nagendra into the Cabinet, saying Nagendra should not use his caste to retain the minister's post.

Kumaraswamy's challenge and peaceful campaign

In response to questions about his own benami properties, Kumaraswamy challenged the government to produce evidence. "If they establish benami property, I will retire from politics," he said, according to The Economic Times. He vowed that his campaign against NICE would remain peaceful and urged youth to create awareness rather than confront motorists.

Kumaraswamy recalled raising the NICE issue in the Legislative Assembly in 2006-07 and suggesting scrapping the project. He noted that at the time he had the backing of only 38 MLAs, but claimed that if he had 134 MLAs, "all those involved would have been in jail," as reported by The Times of India.

Perspectives

Kumaraswamy's view

Union Minister HD Kumaraswamy alleges a large-scale scam in the NICE project, accusing the state government and successive administrations of colluding with the company, violating agreements, and failing to compensate farmers. He claims Chief Minister Shivakumar is attempting a benami takeover and promises to release documents to prove it, urging the public to rise against the project peacefully.

Government and NICE's response

Public Works Minister Satish Jarkiholi maintains that the toll issue must be resolved within the legal framework, noting the 30-year concession of which 20 years have passed. He says the government has asked NICE not to increase toll excessively and cannot backtrack on its decisions. The Congress government and NICE officials have denied allegations of wrongdoing, including illegal toll collection and collusion.