Noida: Probe ordered into irregularities in issuing certificates to industrial units

The move comes after complaints were filed against the industry department of the Noida authority alleging that the department issued functional certificates in violation of the norms

The Uttar Pradesh government has ordered a probe into alleged violations in issuing functional certificates to factories and industrial units in different sectors of Noida. The move comes after complaints were filed against the industry department of the Noida authority alleging that the department issued functional certificates in violation of the norms.

The UP infrastructure and industrial development department has directed the Noida authority’s chief executive officer to investigate the allegations. (HT Archive)

As per the norms, if an industrial unit or a factory becomes operational, then the authority issues a ‘functional certificate’ certifying that the business operations are underway at the site and the plot is being used for the purpose for which it was allotted. Before issuance of a functional certificate, the industry department of the authority checks all the documents of the unit and also conducts an inspection at the site, said officials.

“We got a complaint stating that the industry department issued a functional certificate in complete violations of the laid down rules. A functional certificate was issued illegally as the industrial plot owner had not started any operations at the site. We have directed the Uttar Pradesh infrastructure and industrial development department to probe into the allegations. We have directed the officials to probe into all functional certificates issued since July 2020,” said Satish Mahana, UP industry minister who ordered the probe last week.

The UP infrastructure and industrial development department directed Noida authority’s chief executive officer (CEO) Ritu Maheshwari to investigate into the allegations. Following directions, the CEO has formed a three-member committee headed by authority’s additional CEO Neha Sharma. Other two members of the committee are chief financial officer and work circle engineer.

“We have started the probe and are gathering all relevant files. We are compiling the data as to how many functional certificates have been issued since July, 2020. Once we have all the figures, we will be able to fix the officials’ accountability,” said Sharma, additional CEO of the authority.

According to the complaint, the industry department staff issued functional certificate illegally and indulged in corruption. The violations took place because the authority in early 2020 started cancelling the allotment of plots due to delay in starting industrial operations, the complaint said.

“The authority started cancelling allotment of plots, where no industry or factory was operational at the site. To evade action, the plot owners got functional certificates issued in violation of norms. If the allegations are found to be true, we will act against officials responsible,” said Mahana.

Noida has at least 12,000 industrial units in different sectors.

“The authority should finish the probe at the earliest and take appropriate action in this matter, as it vitiates the business atmosphere. The government must take stern action against officials and others involved in the alleged irregularities,” said Vipin Malhan, president of Noida Entrepreneur Association.