CAG raps Housing Board for "rampant" discrepancies

:The Comptroller and Auditor General has rapped Karnataka Housing Board for "rampant" discrepancies in selection of locations for housing projects not driven by demand and payment of Rs 8.52 crore as compensation without any assurance that they were made to rightful owners during February to July 2013.
"The Special Land Acquisition Officer (SLAO) failed to obtain all documents necessary for processing claims before payment of compensation. Hence Rs 8.52 crore was paid as compensation without availability of necessary documents and therefore audit could not derive assurance that payments were made to rightful owners," said the CAG report, covering the period of 2008-2013.

The report tabled in the Legislative Council brought out discrepancies in execution and costing of housing projects.KHB adopted manual excavation instead of mechanical means for 9,28,465.50 cum (cubic metres) of earth in 18 out of 32 works, incurring an avoidable expenditure of Rs 9.16 crore.
It also said that the board used water bound macadam as base course for majority of roads in 19 works, instead of wet mixed macadam,resulting in extra expenditure of Rs 5.26 crore.
Moreover, the report said fixation of allotment rate before actual completion of the project resulted in a loss of Rs 146.26 crore in three projects.

The District Purchase Committee (DPC) was bound to adhere to the guidelines issued by the government in November 2001. However, contrary to guidelines, rates fixed for compensation in six-checked cases were found fixed without transparency and proper justification, the report said.
Pointing out discrepancies in the allotments, CAG said the board made allotments on request and at rates lower than that fixed in its resolutions.