Click to play videoNew Delhi: The Comptroller and Auditor General of Maharashtra has tabled a report in the state assembly slamming the City Industrial Development Corporation (CIDCO) for allotting plots to Reliance at rates lower than market value causing a loss of Rs 30 crore to the government.
A piece of land at Khoparkhairne area in Navi mumbai belongs to Reliance Industries. The CAG has indicted CIDCO for allotting this land at a lower than market value to Reliance for building a residential complex and school for its employees.
While one 40,000 square meters plot was sold for almost Rs 19 crore, the CAG says the market value of the plot is closer to Rs 47 crore. Another 5000 square metres plot was allotted at Rs 20 lakh while the market value is closer to Rs 2 crore.
The CAG report also states that Reliance does not even fulfil the eligibility criteria for these plots.
”The proper criteria were not followed. Six other institutions who fulfilled the criteria also wanted the land but the govt is silent as to why the land was not allotted to those institutions,” says Sangita Chaure Accountant General of Maharashtra.
The state government's largesse has been extended not just to Reliance but others too. The report says an excess payment of over Rs 62 crore was made to wind energy companies owned by Sena leader Manohar Joshi and Amit Deshmukh, the chief minister's son.
The report also says that a payment of Rs7.49 crore was made to Hindustan Construction Corporation violating contractual provisions and free rides on the luxury train Deccan Odyssey caused a loss of Rs 63 lakh to the state tourism department.
The state government has a standard response to questions on the irregularities.
“The report has just come. Each department will be asked for explanations and the responses will be placed before the legislature and we will try to rectify the mistakes,” says Maharashtra Chief Minister Vilasrao Deshmukh.
The state has a debt burden of Rs 1, 40 000 crore. But going by the CAG report its clear that the state govt has little interest in stopping the losses to the treasury.
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