Undue favour to 2 builders value UP Rs 572 crore: CAG report

Ajay Banerjee
Tribune News Service
New Delhi, August 22

The Ghaziabad Development Authority (GDA) suffered a lack of Rs 772 crore, together with Rs 572 crore owing to the “undue” profit given by the UP Government to 2 actual property builders, who have been spared the obligatory change of land use (CLU) costs.

Ghaziabad rip-off: Other losses too

  • Rs18.91 crore loss as GDA didn’t revise & get well metropolis growth costs

  • Rs151.98 cr loss owing to non-compliance of orders on sale of properties

  • Rs22.14 cr loss after incentive scheme was prolonged to a medical school

Objections by the Legal Department on this regard have been overruled, as per the report of the Comptroller and Auditor General (CAG) which was tabled through the four-day session of the state Assembly at Lucknow. Given that the CAG report is predicated on a ‘sample check’, the size of the rip-off may very well be a lot larger.

The report says that an undue advantage of Rs 401.30 crore was given to Uppal Chaddha Hi-tech Developers Private Ltd and of Rs 171.18 crore to Suncity Hi-tech Infra Private Ltd. “The Government of UP allowed undue benefit of Rs 572.48 crore to the two developers at the cost of the Ghaziabad Development Authority,” the CAG report reads.

“On April 23, 2010, the Housing and Urban Planning Department of Government of UP, at the request of the developers, altered the indicated land use in the Master Plan to residential and consequently no charges for conversion of land use were payable by the two developers,” the report mentioned. The Legal Department of the Government objected, mentioning that the “non-levy of land use conversion charges would amount to ‘post-bid benefit’. This was overruled by the Principal Secretary, Legal Department”, the report says.

In May 2005, the UP Government chosen two builders for High-Tech township in Ghaziabad. At that point, Master Plan-2001 was in drive, based on which the land use of the world designated for the township was agricultural. In July 2005, Master Plan-2021 was authorised which mentioned the chosen builders must pay the relevant CLU costs.

The UP Government orders issued in August 2001 too state that CLU costs are to be levied as per the circle charge fastened by the district Justice of the Peace.

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