Vedic Village case: IT projects may take a hit

Hooliganism at a football match and the arson at the Vedic Village resort near Kolkata last Sunday may hit Infosys and Wipro's plans to set up units in the state.

The state government had formed a joint venture with Vedic Realty, developer of Vedic Village, to set up an IT city project adjacent to the Vedic Village.

Infosys and Wipro had been allotted land there, but with the realtors coming under a cloud for dubious land deals, it looks like the IT city project may be scrapped.

Investigations of arson at Vedic Village, have revealed close links between Vedic Realty and a land shark who triggered Sunday's trouble, Gaffar Mollah, now absconding. Vedic Realty is the promoter of a 1200 acre IT city planned by the government near the resort.

How the land was acquired is not clear, but Vedic Realty has given the government 200 acres of the 600 acres it is supposed to, free of cost. Of that, the government has given Wipro and Infosys 90 acres each. But now ministers are raising questions about the whole deal.

Such questions have put the state's IT department in a spot and, sources say, it may put the IT city project on hold till the Vedic Realty is cleared of suspicions of dubious land deals.

No word from Infosys or Wipro as yet but if the IT city goes on hold, the IT giants, too, may have no option but to follow suit.