In a major shift from the decision of the previous Akhilesh Government, the BJP-led Yogi Government threw the doors open for CAG to audit accounts of all the development authorities, including Ghaziabad Development Authority (GAD). After reports of corruption started pouring in and Yadav Singh, the chief engineer in GAD emerged as major conduit, the CAG wanted to audit the account of GDA, but the then Samajwadi Party Government refused permission saying central audit agency is not authorised to audit accounts of development authority.
In its second Cabinet meeting, the Aditya Nath Yogi Government allowed CAG to audit the accounts of GDA as well as asked the central audit agency to audit accounts of any development authority it deemed fit.
“We have thrown open the window for CAG to audit the accounts of any or all the 29 development authorities of Uttar Pradesh. This is a step towards weeding out corruption and bringing transparency in the Government working,” State Health Minister and Government spokesperson Sidharthnath Singh said while briefing media persons after Cabinet meeting here on Tuesday.
Corruption in GDA was a bone of contention between the previous Samajwadi Party Government and the CAG as the central audit agency wanted to audit the account of development authority while the then State Government citing rules did not give permission. Even Governor Ram Naik wrote letters to the then CM asking him to allow audit through CAG, but there was no response from the State Government.
State Principal Secretary Urban Development Sadakant said that development authorities work under UP Urban Planning and Development Act. Clause 22 of the said Act says that CAG can audit the accounts of development agencies if State Government gives permission. “The Cabinet has given that approval and GO has been issued asking CAG to audit finances of GDA,” the official said.
Interestingly, the same official had argued in June 2016 that GDA did not fall under the ambit of a CAG audit and it should be done by the State-level agencies. Sadakant had stopped the CAG audit in 2016 saying “State Government had to be consulted for an audit.” But now officials have fished out an order of June 1985 which states that agencies/development authorities getting grant/loan of Rs1 crore or above in a financial year from the Consolidated Funds of State will have to get accounts audited by CAG.
On February 8, Prime Minister Narendra Modi in his election rally in Ghaziabad had targeted GDA for alleged ‘land scams’ and said that if BJP wins the elections, he would ensure a CAG audit of all development authorities, including GDA.
A team of CAG officials had approached the authority headquarters in Ghaziabad a few days ago and requested for permission to initiate an audit. However, they were denied permission by the officials on the ground that there was no clearance from the State Government.
Sources at that time had said that a team from UP auditor general office regularly undertakes audit and sends project files to them for scrutiny. The report by the audit team is also sent to Public Accounts Committee of State Vidhan Sabha, which monitors and reviews Audit reports.