CAG raps M'rashtra for Rs 20 cr loss in Satyam deal

The Comptroller of Auditor General (CAG) of India has rapped Maharashtra Government for giving "undue benefit of over Rs 20 crore" to controversial Satyam Computer Services Limited by selling land at lower rates in Multimodal International Hub Airport (MIHAN) project at Nagpur.

"The Maharashtra Airport Development Company Limited (MADCL) allotted 100 acre land to Satyam at a lower rate of Rs 18 lakh per acre against applicable rate of Rs 24.28 lakh considering it as an 'early bird' offer," the report said.

The land was given to Satyam to set up an IT company at MIHAN on December 5, 2005.

Incidentally, MADCL had approved 100 acre of land at MIHAN to Shapoorji Pallonji and Company Limited at the rate of Rs 26.30 lakh per acre for an IT company on the same day.

"The sale of land to Satyam at lower rate was not justifiable and it resulted in a loss of revenue of Rs 6.28 crore to MADCL owing to undue benefit offered to Satyam," the report said.

Satyam was also given over 28 acres of additional land on March 3, 2007 without the approval of the competent authority at the rate of Rs 22.35 lakh per acre while the market price during 2005-06 was Rs 72 lakh per acre, the report said.

"The allotment of additional land without the approval of competent authority at less than the prevailing market price of land was irregular and resulted in loss of revenue of Rs 13.93 crore," it said.