Karnataka HC calls NICE road project 'biggest scam', orders forensic audit

HC's sharp rebuke

The Karnataka High Court on Thursday pulled up the NICE (Nandi Infrastructure Corridor Enterprises) road project, terming it the 'biggest scam' and directing a forensic audit. The bench, hearing a batch of petitions, expressed strong displeasure over the project's execution and alleged irregularities in land allotment.

The court's remarks come amid long-pending litigation over the peripheral ring road project, which has been mired in controversy for years. The HC's order is seen as a significant setback for the concessionaire, which has faced multiple allegations of land grabbing and violation of agreements.

What the court said

Justice [name withheld] observed that the project had been executed in a manner that benefited private interests at the cost of public resources. The court reportedly said that the project was a 'scam' and that the state machinery had failed to act against the company.

The bench has now sought a comprehensive forensic audit by an independent agency to examine the financial transactions and land dealings related to the project. The audit report is expected to be submitted within a specified timeframe, though the exact deadline has not been made public.

Background of the project

The NICE project, conceived in the late 1990s, was intended to build a 91-km peripheral ring road around Bengaluru, along with expressways and townships. However, the project has been bogged down by litigation over land acquisition, with farmers and activists alleging that excess land was taken beyond what was sanctioned.

Over the years, multiple court orders have directed the company to surrender excess land, but compliance has been patchy. The latest HC observation adds to the growing legal pressure on the concessionaire, which has denied any wrongdoing in previous hearings.

Next steps

The court's directive for a forensic audit is expected to unearth details of the project's financial dealings, including alleged diversion of funds and inflated costs. Legal experts say this could lead to further action, including possible criminal proceedings, if irregularities are found.

The state government, which is also a respondent in the case, has not yet issued an official response. Meanwhile, the company has not commented on the HC's observations, and it remains to be seen how it will respond in the next hearing.

As the case moves forward, all eyes will be on the audit findings and the court's subsequent directives, which could have far-reaching implications for infrastructure projects in the state.