Alienation/allotment of land by the AP Government during 2006-11 was characterised by grave irregularities, involving allotment in an ad-hoc, arbitrary and discretionary manner to private persons and entities at very low rates, without safeguarding the financial and socio-economic interests of the state, the CAG said in its audit report for 2010-11 which was tabled in the Assembly today.
Most of these allotments were made during the tenure of the late Chief Minister YS Rajasekhara Reddy (who was in power between 2004 and 2009).
In a large number of cases of land allotment, the State Government ignored the prescribed procedures and disregarded 'canons of financial propriety', the CAG noted.
Audit scrutiny revealed that undue benefit of Rs 1784 crore was given to various entities and persons, due to the difference in the rates at which land was allotted and the market value as recommended by the District Collector concerned or the Empowered Committee (headed by the Chief Commissioner of Land Administration).
"During 2006-11, the State Government alienated/ allotted 88,492 acres of land to 1,027 beneficiaries.
In the 11 sampled districts, 459 allotments were made, involving 50,285.90 acres of land. Of these, 409 cases were scrutinised in audit.
"Audit found that land allotments for commercial purposes were not made in a fair, consistent and transparent manner so as to serve the public interest," the CAG observed.