Odisha to offer land to commercial developers through auction

Land allotment through auctioning to come into effect after the State Cabinet ratifies a draft land grant policy framed by sub-committee

Barely days after drawing flak from the Comptroller & Auditor General of India (CAG) for arbitrary allotment of land without any policy, the Odisha government has now decided to lease out land in the city to commercial developers through the bidding route.

Land allotment through auctioning will come into effect after the State Cabinet ratifies a draft land grant policy framed by a sub-committee headed by S N Patro, minister for revenue & disaster management.

“Land to multiplexes and other commercial complexes will be given through the bidding route.  For affordable housing, land will be alloted to societies. We have prepared a draft land allotment policy after studying the prevailing policies of other states. The draft report will soon be placed before the Cabinet for approval,” Patro told reporters after the maiden meeting of the sub-committee.

It may be noted that the CAG in its latest report on general and social sector for the year ended March 31, 2012 says the state general administration (GA) department alloted 464.47 acres of land in the city in 337 cases during 2000-12 to individuals, government offices, government undertakings as well as private bodies for establishment of hotels, hospitals, educational institutions and non-government organisations.

Of this, 183.44 acres were alloted to non-government institutions/organisations.

A test check of 164 out of 337 cases by the central auditor revealed that the process of allotment of land lacked a defined policy and procedure. CAG held that absence of any rule or criteria to govern the allotment process gave room for arbitrariness in allotment.

“There was no uniformity in disposal of applications, sanction of concession on premium to be paid, changes in land use plan and resumption of encroached land. Proclamations inviting public objections as stipulated in Odisha Government Land Settlement Rules was not published in any of the test checked cases,” the report said.

Site selection committee, a body specifically constituted to examine the eligibility of allotment, was bypassed in 19 out of 164 test checked cases while alloting 112.15 acres of land. Besides this, recommendation of the respective administrative departments was not obtained in 15 cases for allotment of 39.27 acres of land.

The CAG report has also pointed out that non-revision of land premium as well as benchmark valuation of land brought in loss of Rs 251.92 crore for the government during 1998-2009.