Sourav Ganguly’s 1-rupee land lease: Calcutta HC orders valuation and auction of 750 acres

Sourav Ganguly’s land lease deal for the construction of a steel factory is currently under scrutiny by the Calcutta High Court. The land, situated in Chandrakona, West Midnapore, was originally allotted to the Prayag Group for the development of a film city. This piece of land, comprising around 750 acres, was later confiscated by the government following the group’s involvement in a large-scale chit fund scam. Allegations raised by public interest litigations question the transfer of such valuable land to Ganguly's company for just a nominal fee of 1 rupee, leading to a legal examination of the matter.

In a recent hearing, the division bench of Justice Joymalya Bagchi decided not to intervene in the agreement between the state and Ganguly’s company, allowing the lease to remain in place. However, the court ordered that a proper valuation of the land and surrounding properties be carried out, with assistance from the Securities and Exchange Board of India (SEBI). The valuation process is to assess the current market value of the land, considering its history and current condition.

Following the valuation, the Calcutta High Court has instructed that the land be put up for auction. The court made it clear that any interested party, including Ganguly’s company, would be allowed to bid in the auction. If Ganguly’s company or any other bidder is able to meet the reserve price set during the auction, the land’s ownership will be transferred to the winning bidder. The deadline for submitting the valuation report is February 13, 2025, after which the auction process will begin.

This issue arises out of a larger investigation into the Prayag Group, which had been granted the land in the early 2000s for the purpose of building a film city. However, the group’s involvement in the chit fund scam led to the confiscation of its assets by the state. The land, which had been intended for the development of a film city, is now under review due to the concerns raised over its reallocation for industrial use, without a proper public auction or market valuation.