UP auditor indicts Noida authority for Rs291 cr loss | india | Hindustan Times
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UP auditor indicts Noida authority for Rs291 cr loss

india Updated: Sep 30, 2011 01:29 IST
HT Correspondent

The Local Fund Audit Department of Uttar Pradesh at Allahabad has indicted the Noida authority for causing a loss of Rs291 crore to the state exchequer because of allotment of farmhouse plots at cheap rates. The audit department has asked why prices were kept so low, for whom it was done and questioned the propriety of the scheme.

The audit department, in its report, has said that 101 farmhouse plot allotments to 86 applicants in 16 months caused Rs291 crore loss to the state exchequer.

The report, which has highlighted anomalies at several stages, says the authority, without permission from the government, made five changes in the policy.

The authority launched the scheme in January 2009 after forming a seven-member committee. The committee fixed the land rate at Rs3,100 per sqm. The audit department, after its evaluation, says the minimum cost should have been Rs4,500 per sqm. Plus, there are internal development costs.

The report says the authority floated the scheme as per an order issued in 2008 and notes the land rate must have gone up by January 2009.

The report also says in case of residential plots, 50% land can be sold, but in case of farmhouse plots, 85% land can be sold, so the cost should have been even more.

The reserved category plots were allotted in 2010-11 and, keeping this in mind, the cost should have been Rs5,100 per sqm. The report has pointed out some other irregularities and all put together mean there was a total loss of Rs291 crore.