Land allotment by CSIDC led to Rs 315 cr loss: CAG

The CAG today slammed the Chhattisgarh State Industrial Development Corporation (CSIDC) for allotting land to 13 private industries at "lower rates" causing a loss of Rs 315 crore to the state exchequer.
The six reports of CAG for the year ended March 31, 2015, were tabled in the state assembly today.
"In all, the reports has underlined financial irregularities of around Rs 9,500 crore,"Chhattisgarh's Accountant General (Audit) Bijay Kumar Mohanty said while briefing about the reports to media.
Thereport on public sectorundertakingspointed irregularities in allotment of land to industries.
"During 2010-15, the CSIDC had made 71 allotments for 3,367 hectare land outside the industrial areas," Mohanty said.

"In respect of seven cases of allotment of land measuring 446.112 hectares, the land premium was assessed at rates lower than the rates applicable as per the state government guidelines. As a result, there wasshortrecovery of Rs 262.64 crore," he said.

Besides, in six cases of allotment of land measuring 16.715hectaresin industrial areas for auxiliary/commercial purpose, the company did not recover land premium at commercial rates as per land allotment rules (LAR), 1974 and the decision ofboardof directors of CSIDC resulted in a loss of Rs 52.49 crore, he added.
As per the report, of the six cases, two were related to land allocation to industries for setting up railway sidings at lower rate applicableforlarge and medium industries instead of higher commercial rates fixed by the CSIDC.

Due to the adoption oflowerrate of land premium, the CSIDC suffered a loss of Rs 10.75 crore towards land premium and Rs 35.46 crore towards lease rent, it said.
The government, however, had stated that the allotment for railway siding to the units is for captive use and not for commercial.
Hence thesame was allotted atindustrialrate and not at commercial.
The reply was not acceptable because as per the land allotment rules (LAR) 1974, railway siding is an auxiliary purpose and board of directors of the company also reiterated that the allotment of land inindustrialarea for railway siding is to be made on commercial rates, the report said.