Corruption in Narendra Modi's Gujarat (Did someone say Modi is honest ?)

Top audit watchdog says 'undue benefits' given to some firms.

The Comptroller and Auditor General of India (CAG) has detected discrepancies in allotment of government land in Gujarat to corporate houses like Larsen and Toubro (L&T), Ford Motors, Essar Steel and others.

The Gujarat government had to forgo a revenue of almost Rs 129 crore after the state cabinet (in 2008 and 2010) gave 30% "special concession" in land prices to L&T for setting up a project to manufacture super critical steam generators and forging shop at Hazira (Surat) for nuclear power plant, states the latest report by the country's top audit watchdog that was tabled in the state Assembly on Tuesday.

Similarly, "undue financial benefit" to the extent of almost Rs 80 lakh were given to L&T while allotting land (2005 and 2006) in Vadodara district for establishment of a technology park.

CAG also pointed out large-scale discrepancies in land valuation in the ambitious GIFT City project coming up in Gandhinagar. It found that the land valued at Rs 2,700 crore was allotted by the state cabinet for a nominal price of rupee one.

"We noticed that land was allotted without ascertaining its value as on the date of allotment. Advance possession of land was given to an organisation in contravention of the government policy. Land was allotted negating the views of finance, revenue and other departments," CAG observed.

"In this case (GIFT project), the state government (also) authorised the allottee to mortgage/lease the land without seeking permission from the collector/government. The state government, despite repeated requests, did not produce to audit the joint venture agreement signed between government/GUDC and IL&FS," it added.

CAG also found that the allotment of over 18 lakh square metres of land in Gujarat, valued at Rs 205 crore, was made to Ford India Private Limited without fixing the price of land by State Land Valuation Committee or SLVC (which is one of the two committees that assess the value of government land).


The state government also faced a short recovery of about Rs 238 crore after it decided (2009) to regularise the encroachment over 7.24 lakh square metres of land at Hazira by Essar Steel.

This land was given at a concessional rate of Rs 700 per square metre instead of Rs 2020 fixed by SLVC.

During the course of audit, CAG noticed five cases, including one involving Adani Port & Special Economic Zone in Kutch , where there was breach of conditions of allotment of government land.

"We noticed that state government did not detect the irregular use of government land and had not taken any initiatives for penalising or taking back the land from industries/institutions committing breach of conditions," CAG observed in its report.

As far as APSEZ was concerned, the company had used only 98 lakh square metres of the total 5.47 crore square metres of land allotted to the company at Mundra in Kutch.

CAG stated that the remaining 4.48 crore square metres of land lying vacant was a breach of conditions of allotment.

http://archive.indianexpress.com/news/big-corporates-got-govt-land-cheap-cag/1097019/1