Rent of Rs 9.33cr not recovered from Great Indian Nautanki Co

The Comptroller and Auditor General of India (CAG) has pulled up the Haryana Urban Development Authority for not recovering lease rent of Rs 9.33 crore from the Great Indian Nautanki Company in Gurgaon.
The Great Indian Nautanki Company had launched a mega entertainment project - the 'Kingdom of Dreams' - in Gurgaon.
In its latest report on Social, General and Economic Sectors, the government auditor found that an amount of Rs 9.33 crore was recoverable along with the penalty of Rs 90.03 lakh for delayed payments.
HUDA had leased out an auditorium in February 2008 to the Great Indian Nautanki Company for 15 years at a lease rent of Rs 36 lakh per month, which was to be increased by 10 per cent after the expiry of each three years.

"The lease rent required to be enhanced by 10 per cent- Rs 3.60 lakh from March 1, 2012 was not enhanced and the company paid only Rs 10.65 crore up to August 2013 and an amount of Rs 9.33 crore was recoverable along with the penalty of Rs 90.03 lakh for delayed payments," the report said.
During the exit conference, the Principal Secretary (PS) of Haryana government said the outstanding lease rent would be recovered. "The project was of international repute for attracting visitors from various parts of India and overseas and the outstanding lease rent would be recovered from the lessee as per law," report quoting PS said.

The report also found, while checking the records of HUDA that out of 426 public utility/community buildings constructed at a cost of Rs 193.19 crore, 21 buildings were lying unoccupied and 17 buildings were under unauthorised occupation.

The school buildings were constructed without consulting with Education Department, the report said, adding, as a result, 25 school buildings constructed by HUDA were not taken over by Education Department and ten school buildings out of these were being used by various other departments to run their offices.
"No action to get these buildings vacated was taken as required under Section 18(b) of HUDA Act, 1977," said the report.

The Principal Secretary, Town and Country Planning Department (PS), Haryana during an exit conference, stated that school buildings would be got vacated from the occupants concerned and the Education Department would be requested to take over the possession.