CAG exposes multi-crore AP land scam
Hyderabad: The “benevolence” of the Congress government in Andhra Pradesh in allocation of land (irregularly) for different purposes has caused enormous monetary loss running into several thousand crores of rupees between 2006 and 2011, the Comptroller and Auditor General (CAG) has said.
Alienation/allotment of land by the AP Government during 2006-11 was characterised by grave irregularities, involving allotment in an ad-hoc, arbitrary and discretionary manner to private persons and entities at very low rates, without safeguarding the financial and socio-economic interests of the state, the CAG said in its audit report for 2010-11 which was tabled in the Assembly today.
Most of these allotments were made during the tenure of the late Chief Minister Y S Rajasekhara Reddy (who was in power between 2004 and 2009).
In a large number of cases of land allotment, the State Government ignored the prescribed procedures and disregarded “canons of financial propriety”, the CAG noted.
Audit scrutiny revealed that undue benefit of Rs 1784 crore was given to various entities and persons, due to the difference in the rates at which land was allotted and the market value as recommended by the District Collector concerned or the Empowered Committee (headed by the Chief Commissioner of Land Administration).
“During 2006-11, the State Government alienated/allotted 88,492 acres of land to 1,027 beneficiaries. In the 11 sampled districts, 459 allotments were made, involving 50,285.90 acres of land. Of these, 409 cases were scrutinised in audit.
“Audit found that land allotments for commercial purposes were not made in a fair, consistent and transparent manner so as to serve the public interest,” the CAG observed.
The Government was yet to realise the cost of land alienation in 60 cases in 11 districts, resulting in dues amounting to Rs 2,559 crore, the auditor said.
This was the first time that the CAG has come out with a comprehensive audit report on land allotments in AP even as the doles of the YSR Government remained a subject of major scandal and controversy in the last few years.
Among the major findings of the CAG were the irregular allotment of thousands of acres of land to former Karnataka Minister Gali Janardhana Reddy’s business ventures, the proposed Lepakshi Knowledge Hub in Anantapur district and the Vanpic port project, all of which incidentally are being probed by CBI as part of inquiry into the amassing of illegal wealth by YSR’s son and Kadapa MP Y S Jaganmohan Reddy.
The CAG, in a way, endorsed the allegations levelled by all Opposition parties in the state over the allotment of land in total violation of rules.
“An extent of 3,115.64 acres of land in Jammalamadugu mandal in Kadapa district was allotted to Brahmani Industries Ltd (of Gali Janardhana Reddy) for setting up a commercial airport and flying academy, in violation of Government of India’s policy on setting up of commercial airports, and without verifying the suitability of the site and viability of the project. It overlooked the fact that the Kadapa airport was just 50 km away,” the CAG report pointed out.
Although the land required for the proposed airport was only around 2,500 acres (as observed by Principal Secretary-Industries and Infrastructure Department), the extent of land alienated was 3,115.64 acres. Thus, an excess allotment of 615.64 acres was made in this case, it said.
The decision to alienate land to Brahmani Industries (BIL) was taken by the Council of Ministers (headed by YSR) even though all the facts were brought to its notice by CCLA, who had also cautioned the Government against the viability of setting up a second airport in the same area, it said.
Alienation of government land to BIL was thus injudicious and in violation of all the established rules and good practices. It clearly amounted to an undue favour to the company without any justification, the CAG observed.
Not stopping at that, another 10,760.66 acres of land in the same mandal was allotted to Brahmani Industries for a green-field Integrated Steel Plant. This involved illegal alienation of 674.58 acres of water bodies and allocation of 2 tmc feet of water from the Gandikota Reservoir without environmental clearance or independent examination of the project report. As of November 2011, even the first phase of construction had not been completed, the CAG noted.
Favours under the YSR Government were also allegedly extended to Gali Janardhana Reddy’s Obulapuram Mining Company (OMC), which has figured in illegal mining activities.
The request of OMC, which had unauthorisedly occupied Government lands, for grant of lease of 413.81 acres was turned down by Anantapur District Collector in August 2008.
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