Guj land revenue dips 18 %: CAG

Rs 555 cr loss to state exchequer due to undervaluation/ short levy of taxes on land

As the land revenue receipts of the Gujarat government declined by 17.93 per cent in the year 2011-12, the Comptroller and Auditor General (CAG) of India has found loss of revenue to the state exchequer to the tune of over Rs  555 crore due to undervaluation or short levy of taxes or allotment of land at concessional rates.

The CAG further found under assessment of tax and other irregularities involving Rs  183.40 crore in 136 cases in different collectors and district development offices during the same period. During the course of the year, the revenue department accepted underassessment of other irregularities of Rs  8.84 crore in 60 cases, it added.

In the CAG report tabled in the state assembly on Tuesday, the auditor states that land revenue receipt for year 2011-12 was Rs  1,477 crore against budget estimate of Rs  1,800 crore, down by 17.93 per cent.

In the previous year 2010-11 the land revenue receipts had jumped 19.25 per cent with actual receipts of Rs  1,788.78 crore against an estimate of Rs  1,500 crore, the report states. It, however, says that the reasons for decline in land revenue was not furnished to audit.

During 2011-12 the CAG found loss of revenue to the tune of over Rs  555 crore which was result of undervaluation of government land, lack of uniformity in allotment of land, allotment of land at concessional prices, short levy or recovery of penalty and taxes.

According the CAG, Larsen and Toubro Limited (L&T) was given land at various point of time at Hazira in Surat and in Vadodara district for setting up manufacturing units. "Larsen and Toubro Limited was alloted government land for manufacture of super critical steam generators and forging shop for nuclear power plant. The price of the land was fixed by the DLVC (district level valuation committee) instead of SLVC (state level valuation committee) rates. This resulted in forgoing of revenue of Rs  128.71 crore," the CAG report states.

In case of Essar Steel Company Ltd (ESCL) the CAG has observed, "The delay in regularisation of encroached government land coupled with levy of ad-hoc penalty at lesser rate in case of ESCL resulted in short recovery of Rs  238.50 crore." ESCL had encroached over 7.24 lakh sq mt government land, which on request of the company was the government in July 2009 had decided to regularise the encroachment by levy of 2.5 times of ad-hoc value of land at Rs  700 per sq mt. But CAG found that even after three years the government had not regularise the encroached land and recover the penalty due.

The CAG further says, "Allotment of land at concessional price to two ineligible trusts resulted in undue benefit to the trusts and subsequent short recovery of occupancy price of Rs  25.05 crore."

The auditor has also found that government land was undervalued in 29 cases which has resulted in short recovery of Rs  36.49 crore. "Undervaluation of government land due to incorrect computation of market value of land and non-recovery of additional market value for allotment of grazing land resulted in short recovery of occupancy price of Rs  36.49 crore in 29 cases," the CAG report informs.

The CAG also found that resolutions or order or instruction were not adhered to by the collectors which resulted in non or short levy of conversion tax and stamp duty aggregating Rs  102.95 crore.