E-Paper
‘Undue’ benefits to builders, others: CAG recommends action against ‘errant’ GDA officials
The CAG has made the observations in a report on development and allotment of properties by Ghaziabad Development Authority (covering period from 2017-2018 to 2021-2022)
The Comptroller and Auditor General (CAG) has taken strong exception to gross irregularities and flouting of rules by Ghaziabad Development Authority and recommended action against the officials responsible for giving undue benefits to builders/developers/beneficiaries.
The CAG has made the observations in a report on development and allotment of properties by Ghaziabad Development Authority (covering period from 2017-2018 to 2021-2022) tabled in the state legislative assembly here on Friday.
It has been observed that the erring officials gave undue benefits to the builders/developers/beneficiaries by not levying infrastructure development fees or sanctioning maps without documents.
The CAG pointed out that the state government made a provision (January 1998) for levying of infrastructure surcharge at the rate of 10 percent of the cost of land to be collected by the development authorities on sale of land.
The authority issues completion certificate only after recovery of all dues. The CAG observed that the scrutiny of records revealed in two cases the GDA issued completion certificates in August 2019 and December 2019 respectively. The GDA issued notices to the developers for depositing infrastructure surcharge of ₹15.46 crore after issuance of completion certificates.
The infrastructure surcharge was not deposited by the developers. The state government stated that the completion certificate of one of the builders was cancelled in September 2021. The case was under hearing and the building was under use. In the other case, the GDA issued an order to seal the building in January 2020 and the premises was in use (July 2024).
The CAG also observed that the Master Plan-2021 of Ghaziabad provided that no construction would be allowed in up to 200 metres area on both sides of the Hindon river. The CAG has given pictures of the area and noticed that even the bed of Hindon river was filled with residential and other constructions.
The CAG quoting the Development Authority Compounding Offences bye-laws 2009 observed that under the by-laws only 10 percent additional area constructed by the developer/person against sanctioned map can be regularised by compounding with levy of requisite fees.
It observed: “However, if construction is more than 10 percent of compounding limit, the authority may issue compounding map after receipt of compounding fees and oath certificate by including provision for demolition of uncompoundable area within 30 days in addition to other conditions for demolition.”
The CAG noted that scrutiny of the test checked records revealed that in 320 out of 384 cases between 2017 and 2022 the developers/persons constructed in additional area which was more than 10 percent of the sanctioned map. The CAG observed: “…GDA issued 320 compounded maps by taking requisite fee of ₹22.78 crore with oath certificate without ensuring demolition of earmarked area within 30 days…”
The CAG noted that the state government did not provide a specific reply (March 2024) and explained only the procedure of compounding and explained only the procedure of compounding.
