IDCO faces questions over ‘land grab by KIIT’ at Chandaka Industrial Estate in Bhubaneswar

Serious questions have emerged over the functioning of the Industrial Development Corporation of Odisha (IDCO) following revelations of alleged irregularities in the allotment and use of industrial land at the Chandaka Industrial Estate in Bhubaneswar, amid allegations of a KIIT-linked land grab.

Information obtained by OTV under the Right to Information (RTI) Act points to prolonged non-utilisation of leased land, alleged misrepresentation of ground realities, and construction activities that appear to exceed approved plans.

Lease Not Cancelled Despite Years of Non-Utilisation

According to RTI information, a plot of land at the Chandaka Industrial Estate, located behind the OTV office, was leased nearly 14 years ago by IDCO to Alliance Computer Telephony India Pvt Ltd for setting up a software industry. However, despite the land reportedly remaining largely unused for close to 13 years, the lease was not cancelled.

Instead, IDCO records indicated that a small-scale unit was operational at the site as of July 18, 2022, a claim that has now come under scrutiny.

RTI Findings and Ground Reality

RTI responses accessed by OTV state that industrial activity was underway at the site. However, visuals captured by OTV on March 3, 2024, showed a different picture. Apart from a small asbestos shed with waste accumulated around it, the plot appeared largely vacant at the time.

Subsequent visuals show that a large multi-storey building has since come up on the same plot. The contrast between official claims and the physical condition of the site has raised questions about the accuracy of inspections and reporting.

Construction Beyond Approved Plan

RTI replies further indicate that in December 2024, IDCO granted permission to construct an S+1 structure, meaning a ground floor plus one additional floor. However, at present, four additional floors have already been constructed beyond the ground floor, and the scale of the structure suggests further construction may follow.

Significantly, while building plan approval was reportedly granted for the software industry, an auditorium has already been constructed within the premises, raising further concerns over compliance with approved land-use norms.

Expert Concerns Over Industrial Land Misuse

Advocate Arun Mahapatra expressed concern over the broader implications of such developments.

He said that genuine industrialisation suffers when land meant for industrial activity is cornered and diverted. According to him, those who need land for actual industrial use are denied access, while leased land remains unused or is misused. He warned that the Chandaka Industrial Estate could gradually mirror the Mancheswar Industrial Estate, where commercial establishments expanded without real industrial growth or employment generation.

Questions Over Accountability and Official Silence

The developments have triggered several unanswered questions, including which IDCO official conducted the site inspection in 2022 and certified that a unit was operational, which officials failed to cancel the lease as per norms, whether any accountability has been fixed, and what action, if any, has been taken against them.

On these issues, IDCO has remained silent.

Observers have also questioned whether IDCO, instead of initiating corrective action, is effectively defending the company. Allegations suggest that the delay in action has resulted in potential revenue loss for IDCO and has placed its credibility at stake.

Proposed Transfer and KIIT Link

Another significant development is that in December 2024, Alliance Computer applied to IDCO for approval of the building plan and simultaneously sought permission to transfer the plot to M/s Kalinga Production and Marketing Pvt Ltd. This has fuelled speculation that the property may eventually be linked to KIIT.

Earlier, KIIT’s Chief Public Relations Officer stated via WhatsApp that the institution was not associated with the matter. However, OTV has claimed that it possesses evidence establishing links between KIIT and the concerned organisation, which it has indicated may be disclosed later.

IDCO’s Response Limited to Notice

In its RTI reply, IDCO stated that Alliance Computer was issued a notice for carrying out construction in violation of the approved plan. However, beyond issuing the notice, no further enforcement action has been reported, even as construction continues rapidly with additional floors being added.

Repeated questions remain unanswered regarding whose pressure or interest IDCO may be acting under, and how such extensive construction was permitted under approval granted for the software industry.

No response could be obtained from IDCO Managing Director D. Prasanth Kumar Reddy despite attempts to seek clarification.