Tech hub: Hughes battles HUDA
By Bala Shah

Hughes Communications India Ltd. (HCIL) is a subsidiary of Hughes Communications, USA and is the largest satellite service operator in India. HNS has a global market share of 55% in VSAT industry. Incorporated in 1992, HCIL services include broadband technology and network solutions. The highly regarded Hughes is now fighting a court battle to keep its offices intact.

It all started when Imaging Solutions Pvt Ltd leased Plot 1, Electronics City, Sector 18, Gurgaon to Hughes Electronics with the clear understanding that any construction work by Hughes on this block of land would adhere to Haryana Government laws. Haryana’s urban development agency (HUDA) documents show that some construction was initially done with extensive and non compoundable violations

Despite these violations, HUDA provided a completion certificate to the tenant Hughes. Apparently, HUDA accepted fines of Rs. 30 lakhs by Hughes for any unauthorized construction. It seemed that HUDA had worked out a mutually satisfactory deal with Hughes. The owner of the land did not pay the money handed over to HUDA. HUDA has no record on who paid the fine of Rs. 30 lakhs to settle the first lot of Government complaints about illegal construction. But the money is there in their balance sheets. Since then there have been other constructions and modifications which HUDA is disputing.

In July 2009, HUDA constituted a team of senior people and had an inspection of the premises done. During this inspection they found several non compoundable violations. The Occupation Certificate (O/C) issued by HUDA states very clearly that if any unauthorized construction/violation is done after taking O/C, then O/C will be revoked without assigning any reason.

HUDA therefore canceled the O/C and has also threatened the owner with resumption or taking back the property. Hughes has taken a temporary stay in court. The Gurgaon Fire Department has withdrawn its certificate from the building.

A Hughes insider tells Techgoss that a formal application has been lodged against them for violation of Section 5 of the Environmental Protection Act 1986 as they are accused of having sunk an illegal tubewell in their premises. This Hughes insider feels the raid may happen today (Oct 21) or in the near future.

Hughes is hugely successful and counts ICICI, Sony, BSNL, Reliance, Indian Railways and others as among its many happy clients.  It has got a stay order in court.  But the battle is going to be long and arduous. The owner of the land is an innocent victim caught up between the powerful Hughes and HUDA.

Hughes is quite confident it is in the right.  Speaking exclusively to Techgoss, a Hughes spokesperson gave us the following statement

“
Statement from Hughes:

The allegations are not correct and are denied. The building has been constructed in compliance with all applicable rules and has been granted appropriate certification by HUDA and it remains compliant. For some reason not known to us, recently HUDA attempted to cancel the certification granted by them in respect of the building without due process. As such the company was constrained to seek relief from the Courts. Based on a petition filed by the company, HUDA's attempted cancellation has been stayed by the High Court o f Punjab & Haryana by an Order dated 27 July 2009. The matter is subjudice and hence we are unable to discuss this any further.
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