Waiver of land premium causes revenue loss: CAG

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Bhopal, Mar 31: Waiver of additional premium and surcharge, in violation of government orders, in allotment of land by the Madhya Pradesh Audyogik Kendra Vikas Nigam-Bhopal to an industrial unit at Mandideep resulted in loss of revenue of Rs 1.24 crore to the company, says a report of the Comptroller and Auditor General of India.

The matter was reported to the government, but its reply was not received till October last year, says the CAG report for 2006-07 presented in Madhya Pradesh Assembly recently.

As per standard practice, the report said, AKVN charged additional premium at the rate of 10 per cent for developed plots facing roads of 80 feet width and above. It also charged 10 percent surcharge for industrial plots situated at corners.

AKVN had allotted a 150 acre corner industrial plot situated on 80 feet wide road in Mandideep industrial area to Mahavir Spinning Mills Limited in September, 2005. At the request of the allottee, the state government gave a concession of 75 percent of the premium on 30 acre out of 150 acre allotted under the state industrial promotion policy.

''While extending the concession, the state government made it clear that no further benefit would be allowed under the policy'', the report said.

A consideration of Rs 6.96 crore including premium, security deposit, advance lease rent and maintenance charges was collected from the allottee. The consideration, however, did not include 10 percent additional premium and 10 percent surcharge for advantageous location.

''It was noticed that AKVN chairman waived the charges without approval of the competent authority, the Board of Directors. This waiver of charges resulted in further benefits to the allotee, which were not permitted by the state government''.

The fact of waiver of the additional premium and surcharge by the chairman was not intimated to the state government and the waiver in violation of government orders resulted in revenue loss of Rs 1.24 crore to the company, the report said.

UNI

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