With documents in hand, Kumaraswamy alleges CM Shivakumar altered NICE project framework for personal benefit

It was not his usual press conference at the party office, but a special one in a star hotel. Union Minister of Heavy Industries H.D. Kumaraswamy, on Tuesday, launched a fresh attack on Karnataka Chief Minister D.K. Shivakumar, accusing him of altering the framework of the Bangalore-Mysore Infrastructure Corridor (BMIC) project, managed by Nandi Infrastructure Corridor Enterprise (NICE), and alleging that deviations from the original Framework Agreement (FWA) caused massive losses to the state exchequer and benefited the CM and his family members financially.

Kumaraswamy presented a series of documents dating back to 1995, saying he wanted to establish that the NICE project was not the brainchild of his father and former prime minister H.D. Deve Gowda, as is often alleged.

Kumaraswamy said the project originated with a memorandum of understanding involving BMIC, William Weld and VHB on February 20, 1995. The Karnataka Cabinet approved the proposal for five townships in November that year, with the private entities expected to bear the land acquisition cost and develop the project at their own expense.

After Deve Gowda became prime minister and moved to Delhi, Kumaraswamy said the project progressed under the J.H. Patel government. A Framework Agreement was entered into with NICE in 1997, involving approximately 20,193 acres.

According to Kumaraswamy, the original framework was subsequently altered through a series of agreements and changes in alignment. He alleged that a tripartite agreement entered into in 2002 and subsequent changes to the outline development plan (ODP) fundamentally deviated from the original FWA.

Kumaraswamy specifically targeted Shivakumar’s role as urban development minister and chairman of the Bangalore-Mysore Infrastructure Corridor Area Planning Authority (BMICAPA). He alleged that the alignment and land requirements were changed during this period without the required Cabinet approval.

He claimed that the land earmarked for the toll road increased from about 6,999 acres to 9,468.86 acres, even though the original project framework remained 20,193 acres.

Kumaraswamy also referred to a 2016 House Committee report submitted during the Siddaramaiah government. He said the report had concluded that the tripartite agreement was contrary to the original FWA and that the 2004 ODP alignment represented a deviation from the agreement.

He also cited decisions taken by his government in 2007, when he was chief minister, prohibiting the sale or alienation of land falling within the interchanges and road portions of the BMIC project.

Kumaraswamy alleged that subsequent realignments benefited individuals and private interests. Referring to land transactions involving D.K. Suresh, he alleged that 10 acres notified for the project in Hosakerehalli were sold to Suresh in December 2003 and later became part of a joint venture involving a private developer. He also alleged that changes in the ODP resulted in 13 lakes being brought into the project area.

He further questioned the growth in Shivakumar’s declared wealth, contrasting the figures he cited from 2003 and 2023, and linked the increase to his allegations surrounding the project. These claims would require verification from official records and the individuals named.

Kumaraswamy put the alleged loss to the state exchequer at ₹3 lakh crore and accused Shivakumar and former NICE promoter Ashok Kheny of benefiting from the project’s deviations.

The Union minister also alleged that only a portion of the planned 111-km road had been completed despite the long-running project and demanded that toll collection be stopped. He said the government should stop collecting toll from motorists until the obligations under the original agreement were fulfilled.

“I am not jealous of D.K. Shivakumar becoming chief minister,” Kumaraswamy said, adding that his objection was to what he described as the looting of the state exchequer.

He argued that the state could reduce its dependence on external borrowing if alleged leakages and irregularities in these infrastructure projects were prevented.

Kumaraswamy said he was placing the documents in the public domain to enable people to examine how the NICE project evolved from the original 1995 proposal and how, according to him, subsequent governments and authorities altered its terms.

The press conference ended with the Union minister saying this is only part one of his exposure. Part two will be coming soon, he said, hinting that more documents related to the chief minister will be released in future.