Coming under criticism from different quarters for arbitrary allotment of valuable lands in the capital, the State government has cancelled the lease of a prime plot of land in favour of the son of Revenue Minister Surjya Narayan Patro.
"The State Government has cancelled the lease in November 2012 and forfeited the premium and interest," the Comptroller and Auditor General (CAG) of India has said in its latest report on general and social sectors said.
Though the CAG report did not mention the name of the Minister and his son, records of the General Administration Department showed that the land was leased out to the Revenue Minister’s son Biplab Patro.
The CAG, however, remarked that the land near the DAV School at Unit-8 was allotted in gross violation of the Government's well-stated land use policy.The Minister said he has nothing to comment on the issue say “at this moment".
The CAG report said that upon application for allotment of two acres of land in the Unit-8 area, Hotel Ambassador International was allotted 1.010 acres of land as per the recommendation of the Government by changing land use zone from "residential" to "commercial".
"The entire process of allotment was completed within 56 days and the applicant was allowed to pay premium at institutional rate (Rs 50 lakh per acre) against applicable commercial rate (Rs 75 lakh per acre), that too in eight installments as per its request," the CAG pointed out in its report.
After one instalment, the allottee requested to change the lease in favour of Hotel South Pac Private limited, a company promoted by his family members, for which approval was accorded and the premium of Rs 6.32 lakh already paid was adjusted against the total premium of Rs 50.50 lakh, the CAG report pointed out.
Though the lessee was required to complete construction by July 2003, he failed to do so, the CAG said, adding that due to non-construction within the stipulated time, the allotment was liable to be cancelled.
The CAG said the Government only issued a show-cause notice in February 2006 and no other action was taken. The Government, instead, instructed the lessee in May 2007 to complete construction within one year. "However, despite this, the lessee received further extension up to September 2012," the CAG said.
"Besides, the company was extended undue benefits of Rs 25 lakh by charging lease premium at Rs 50 lakh per acre against the prevalent market value of land of Rs 75 lakh per acre," the CAG said.
However, despite all these benefits, the land continued to remain unused except construction of a boundary wall and a small hut in October 2012, the CAG said, adding that it had been informed in November that the Government has cancelled the lease and forfeited the premium and interest.