The Comptroller and Auditor General of India (CAG) has revealed violation of laws by many companies that have acquired government land on lease. One of the major violations includes breach of government clauses. The CAG has also pointed to inaction by the collectorate office and the state government against the violations.
The case of M/s Jolly Boards Ltd. is a prime example reported by the CAG in its “performance audit on government land given on lease” report that was tabled in both the Houses of the state legislature last week.
The company has used the plot from industrial to partially commercial, industrial and residential purpose without taking prior permission from the government. Also, the company constructed an IT park without approval from the collector. Significantly, the land was given to the company on a meagre annual lease of `3,300.
According to the report, in May 1985, the revenue and forest department had sanctioned 39,690.85 sq m of land at Kanjur area to the said company for industrial purpose on lease basis for a period of 30 years.
As per the Development Plan of the BMC, the land was reserved for a district commercial centre. The government granted approval in June 2010 to the lessee for change of use of land from industrial to partially commercial, industrial and residential purpose with a condition that the land was to be developed without third party interest and the draft agreement between lessee and developers had to be submitted for approval of the collector to ensure the interest of the state.
But, detailed scrutiny of records revealed that the lessee had entered into a development agreement in December 2005 itself — almost five years before the government granted approval for change of use — without prior permission of the collector.
The CAG pointed out that the collector should have resumed the land for breach of condition, but nothing was done. It also brought the matter to the notice of the collector, Mumbai suburban district in July 2012, but did not receive a response till March 2013.