Taking the CAG report seriously on the mortgaging of Government land allotted to industrialists to raise loan, Industries Minister Debi Prasad Mishra sought a detailed clarification from the State owned Industrial Infrastructure Development Corporation (IDCO) on the issue and its justification of taking such a decision.
According to sources, Mishra asked the IDCO authorities to submit a detailed report on the issue before the reopening of the current Budget Session of the Assembly.
The Comptroller and Auditor General (CAG) had come out with a shocking report of industrial houses in the State availing financial loan of `52,423 crore by mortgaging land allotted to them by the State PSU IDCO during 2001-2012.
The report was presented in the Assembly on the last day of the first phase of the ongoing Budget Session on June 28 last. The CAG pointed out that the IDCO in clear and blatant violation of the rules and regulations issued the no objection certificates (NOCs) to the industrial houses to avail loans from banks by mortgaging the land allotted to them.
The IDCO, the CAG report said, had conferred the mortgage rights in the lease deeds with the 52 MoU based and 54 non MoU based industries handing over them possession of nearly 46,732 acres of land despite the fact that such power was not vested with the corporation by the State Government.
On the basis of NOC issued by the IDCO, as many as 12 industrial houses have availed loans of Rs 52,423 crore from the financial institutions by mortgaging 8,489 acres of land.
The IDCO, the CAG report said, had allowed nearly 736 small and medium industrial units in 32 industrial estates across the State to mortgage the land with the financial institutions to avail loan without ensuring adequate safeguard.
While the report evoked sharp reactions with the main Opposition parties like the BJP and the Congress demanding CBI probe into the issue, they also dubbed the action of the IDCO as highly irregular and a major scam. However, industrial bodies like the Utkal Chamber of Commerce and Industries (UCCI) and FICCI took exception to the report and termed the report as anti-industries.