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Chandigarh: CITCO lost ₹10 crore in 3 years due to poor planning, says CAG report
Between April 2022 and February 2025, the corporation paid ₹2.08 crore as commission to these platforms – ₹88.8 lakh in 2022-23, ₹64.83 lakh in 2023-24, and ₹54.63 lakh in the current year
Poor planning and mismanagement have caused a loss of ₹10 crore to the Chandigarh Industrial and Tourism Development Corporation (CITCO) in the last three years, an audit by the Comptroller and Auditor General (CAG) of India for the years 2023-2024 and 2024-2025 revealed.
₹2 crore lost due to non-functional booking system
One of the most glaring findings of the audit report was the corporation’s failure to operationalise its own online booking platform. Despite having an official website, CITCO’s hotels – Mountview, Shivalikview and Parkview – remain dependent on third-party platforms such as MakeMyTrip, Goibibo and Booking.com.
Between April 2022 and February 2025, the corporation paid ₹2.08 crore as commission to these platforms – ₹88.8 lakh in 2022-23, ₹64.83 lakh in 2023-24, and ₹54.63 lakh in the current financial year till February, the audit report accessed by RTI activist RK Garg revealed. The report noted that this expense was entirely avoidable had CITCO’s own booking system been functional.
Steel depot made negligible sales but maintaining staff cost ₹1 crore
In another instance of inefficiency, CITCO’s steel depot – meant to supply iron and steel to MSMEs– recorded negligible to zero sales. While the earnings stood at just ₹4 lakh in 2023-24, there were no sales at all in 2024-25 (till February).
Despite this, 10 employees – including managerial staff – continue to be posted at the facility. The audit estimates that maintaining this workforce without any business activity resulted in a loss of ₹1.4 crore over two years.
It also flagged that the depot’s infrastructure remains idle, suggesting missed opportunities for revenue generation.
Bakery decision backfires, leads to ₹38 lakh loss
At Sukhna Lake, CITCO’s decision to run its own bakery instead of leasing out a shop has proven costly. The shop could have fetched a rent of ₹1.5 lakh every month, but was instead operated by the corporation itself despite the presence of another nearby outlet selling similar items. The result was a combined loss of ₹38 lakh, including ₹28.5 lakh in lost rent, ₹3 lakh in operational losses, and ₹6 lakh spent on interiors and equipment.
The audit termed the move “unfruitful” and questioned the rationale behind entering a business segment already saturated within the same premises.
₹5.8 crore lost over UT guest house in Delhi
The corporation has also been incurring expenses on managing the UT Guest House in New Delhi without reimbursement from the Chandigarh administration.
Between 2011-12 and 2023-24, CITCO spent ₹4.4 crore from its own funds. The audit added that the blocked funds resulted in an additional notional interest loss of ₹1.4 crore, taking the total impact to ₹5.8 crore.
It flagged the absence of any formal agreement for reimbursement and rejected CITCO’s justification that the activity was a “social function,” noting that the corporation is mandated to operate on commercial lines.
Shops lie vacant, ₹54 lakh revenue lost
The audit also highlighted poor asset utilisation, with multiple shops across CITCO properties remaining vacant for extended periods. At Hotel Shivalikview alone, three shops have been lying unleased for up to five years. Overall, five shops and units across hotels, petrol pumps and Sukhna Lake remained vacant for months to years, leading to a revenue loss of ₹54 lakh.
The report criticised the corporation for failing to initiate timely leasing processes, calling it a recurring lapse.
