CAG raps Cidco over land sale to Rahejas

The Comptroller and Auditor General of India (CAG) has pulled up the City and Industrial Development Corporation of Maharashtra (Cidco) for allotting a prime plot of land to the K Raheja group opposite Vashi Station for less than half the market price.

According to the CAG report, the 30,500 sq mt plot was sold to the Raheja group for Rs 10,250 per sq mt. The market rate of the plot is Rs 20,791 per sq mt. The report also notes that the plot was sold without inviting any tender.The Cidco board directive had specifically stated that disposal of such lands should only be through an open tender.

The plot was sold to the Raheja Group for approximately Rs 31 crore, resulting in a loss of Rs 26.74 crore to Cidco. The report notes that this amounts to "undue favour to a private party". This is in violation of a Cidco board directive for conversion of land use from IT park to residential and commercial use, the report adds.

The CAG report said the Cidco board admitted that plot, sold to the Rahejas, had the advantage of fully developed node in all respects and that the cost of creating this infrastructure to the Cidco was around Rs 5.5 crore.

This is contrary to what Cidco had told CAG that the area was not fully devleoped and by selling in bulk, it got the benefit of larger saleable land and would not incur expenditure on internal devleopment.

The report also indicts Cidco for allotting land at concessional rates at Nerul to its own senior officers and directors. The plot was sold at a rate of Rs 6,250 per sq mt versus the market rate of Rs 10,235 per sq mt, the report said.