cag: CAG: Noida, an industry authority, but only has 5% land for industry | India News

0


[ad_1]

NEW DELHI: The Noida Authority, established under the UP Industrial Area Development Act 1976, has failed in its primary objective of promoting industry, as demonstrated by the Comptroller and Auditor General (CAG) performance audit.
The CAG report, presented in the Uttar Pradesh Assembly on Friday, said only 5% of the total land acquired by the Noida Authority could be developed for its primary purpose, industry. It tried to encourage industrialization by lowering the prices of industrial land and subsidizing it through profits from the sale of land in segments such as residential and commercial.
However, the KAG found that the Noida authority had to ensure that the benefits of these subsidized tariffs were passed on at the earliest to real industrialists interested in an investment, and not to investors or real estate dealers.
The CAG found glaring cases of unjustified privileges in the examination of applications and the arbitrary allocation of industrial property. The deviation from the procedure is so great that on September 30, 2020 the state government instructed the Noida authorities not to allow commercial property for any use other than that specified in the allocation conditions.
The CAG calculated the monetary difference between the actual grants to the grant recipients and the fees charged for the commercial use of industrial properties, at Rs 333.17 billion. Conversion fees of 50% of the difference in value between commercial and industrial properties have been set for properties in the mixed-use area category. The value of commercial real estate was much higher than that of commercial real estate. Later, by popular request, the fee was reduced to 25% of the difference value.
Interestingly, at the 186th board meeting on September 18, 2015, the fees were further reduced to 10% of the difference, citing public demand for a reduction, the CAG report said. In addition, the conditions for depositing conversion fees were further relaxed by the Management Board in December 2017. Instead of the full fees, 20% of the fees should first be deposited and the rest paid in 10 installments every six months.
The KAG found that the reduction to 10% of the difference was irregular and unfounded, as the suggestions of the public had been requested and duly taken into account at the time of the initial reduction. The KAG found that the limited applicability of the regulation together with the arbitrary fee reduction clearly indicated that the special exemption was only extended to agents of car dealerships, art galleries and museums. Such authorized persons have mixed-use areas available on the ground floor of industrial properties on 25% of the permissible floor area (FAR).
The CAG said Noida identified 36 cases of allotment holders using the properties for out-of-grant activities. These included 10 car dealerships that used industrial properties. By August 2020, only 10 assignees had deposited the conversion fees and no cards were approved as part of the mixed land use policy.

[ad_2]

Share.

Comments are closed.