The Comptroller and Auditor General (CAG) of India has reported scam in land allotment to Posco by the State Government.
“The company was extended undue benefit in allotment of land disregarding zonal regulation and charging of premium at a reduced rate,” the CAG has observed in its latest report tabled in the State Assembly on Saturday. CAG, while conducting a performance audit about the land allotments by Government’s General Administration Department, has come across widespread irregularities.
The CAG has said the Posco-India had applied in 2006 for allotment of a plot measuring 12,000 square feet for its Chairman-cum-Managing Director’s (CMD) residence-cum-guesthouse. later it enhanced its requirement twice to 25,000 square feet in April 2007 and later two acres for the same purpose.
Though the same area was earmarked in the Comprehensive Development Plan of capital city for commercial use, the company was allotted 1.700 acres of land in January 2008 at a premium of Rs25 lakh per acre against the prevalent market value of the land of Rs64 lakh per acre resulting in a loss of Rs66 lakh to State Government, the CAG has observed.
Moreover, the CAG, on physical verification, found that the land was lying vacant till June 2012. “The company, thus, was extended undue benefit in allotment of land disregarding zonal regulation and charging of premium at a reduced rate,” CAG observed.