Note ban effect: Ghaziabad authority short of yearly target by Rs 500 cr
Following the demonetisation of higher value noter in November, the authority has been unable to sell its plots and buildings. Major sources of revenue, from house expansion and realty projects, among other sources, also saw a dip following the demonetisationnoida Updated: Feb 21, 2017 22:22 IST
The Ghaziabad development authority (GDA)’s revenue collection for the current financial year is falling short of the target by nearly Rs 500 crore. Officials attributed the dip in the income to the market slump following the demonetisation of higher value notes.
At present, the development authority has collected around Rs 1,000 crore against a target of Rs 1,500 crore for 2016/17.
The major sources of revenue for the GDA is through compounding charges (expansion of existing buildings), the sale of plots and properties, development charges levied on realty projects, charges for clearing map layout of buildings and income through the use of increased floor area ratio.
GDA officials said that the number of receipts issued by the authority for payments has considerably declined from the last financial year.
“At present, there are one-and-a-half months left in this financial year but receipts issued amount to around Rs 1,000 crore only. There is a deficit of nearly Rs 500 crore. It can also be attributed to market sluggishness as our properties are not getting sold. Even the developers are not keen on starting new projects. Also, house owners are not availing the compounding option to build on additional space,” TR Yadav, the financial controller of GDA, said.
Officials said they collected a revenue of Rs 1,378 crore against a target of Rs 1,500 crore in the last financial year. Officials attributed the decrease in income to the market slowdown since November and said that they will send a notice for payment of dues.
“To increase the (revenue collection and issue of) receipts, we have started issuing notices to people who have pending payments. As per estimates, the pending amount is nearly Rs 600 crore,” Yadav said.
Recently, the GDA also decided to adopt cost-cutting measures in order to improve its working and cut down on extra expenditure. Officials said the cost-cutting measures have become essential on account of the low revenue collected and also because the authority has made major investments in big projects.
Officials said that they are cutting down on daily expenses such as decoration, refreshment and also the use of paper. The estimated operating expenses of the authority are Rs 6-7 crore per month, including the salaries, maintenance and electricity charges.
Recently, in an election rally in Ghaziabad, the Prime Minister Narendra Modi slammed the state government for denying the comptroller and auditor general (CAG) an audit of GDA.
The CAG audit of GDA has been a bone of contention between the state and Central government. For the past year, the Centre and the UP governor have written to the state government to conduct a CAG audit of GDA, but the state is yet to agree to it.
GDA vice-chairman Vijay Kumar Yadav did not take calls while GDA secretary Ravindra Godbole referred the issue to the authority’s financial controller.