cag: CAG: Noida, an industrial authority, but only has 5% of land for industry | India News
The CAG report, tabled in the Uttar Pradesh Assembly on Friday, said only 5% of the total land acquired by the Noida Authority could be developed for its main purpose, which was industry. He tried to promote industrialization with lower prices for industrial land, subsidizing it through profits from the sale of land in segments like residential and commercial.
However, observes the CAG, the Noida Authority was required to ensure that the benefit of these subsidized rates was passed on to genuine manufacturers interested in investing as soon as possible and not to investors or land traders.
Blatant cases of undue favors in the examination of applications and the discretionary allocation of industrial plots were found by the CAG. The deviation from the procedure is so blatant that the state government on September 30, 2020 ordered the Noida Authority that under no circumstances should industrial land be permitted for purposes other than those mentioned in the conditions of attribution.
The CAG calculated that the monetary difference between the actual benefits to beneficiaries and the charges levied for using industrial land for commercial purposes amounted to Rs 333.17 crore. The conversion costs for land in the mixed-use category have been decided at 50% of the differential value of the commercial and industrial property. The value of commercial property was much higher than that of industrial property. Later, the load was reduced to 25% of the differential value by popular demand.
Interestingly, the fee was further reduced to 10% of the differential at the 186th board meeting on September 18, 2015, citing the public demand for the reduction, according to the CAG report. In addition, the conditions for depositing the conversion fee were further relaxed by the board in December 2017. Instead of the full fee, 20% of the fee was to be deposited initially and the remainder in 10 installments paid at six months. ‘interval.
The CAG found that the reduction to 10% of the differential value was irregular and unjustified because the public’s suggestions had been solicited during the initial reduction and duly taken into account. Thus, the CAG noted, the restricted applicability of the scheme as well as the arbitrary reduction in fees made it clear that a special exemption was extended only to dealers of auto showrooms, art galleries and shops. museums. Mixed land use facilities are available for these beneficiaries on the ground floor of industrial plots at 25% of the allowable floor area ratio (FAR).
CAG said Noida had identified 36 instances where beneficiaries were using the properties for activities outside of the allotment condition. Among them were 10 showrooms of cars that used industrial properties. As of August 2020, only 10 beneficiaries had deposited conversion fees and no cards had been approved under the mixed land use policy.