It noted that the department had not formulated any long term Perspective Plan for development of colonies in Srinagar and Jammu indicating actual requirement of accommodation and modalities for development of colonies.
The CAG in its report for the year ended March 31, 2015, said the work on construction of 400 residential flats taken up in June 2012 at an estimated cost of Rs 85.92 crore for completion within three working seasons, had not been completed as of March 2015 due to insufficient funding.
The Director Estates stated that 48 flats were expected to be completed by August 2015 and construction of pending flats could not be taken up due to non-release of funds by the Planning and Development Department.
The CAG report also said that the government quarters constructed on 18 kanals and nine marlas of land at Khazir Manzil and Dalgate Srinagar were gutted during 1989-90.
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The Director Estates stated that construction of Khazir Manzil had been delayed due to objections raised by the Lakes and Waterways Development Authority (LAWDA) and private hotels, it said.
"The reply furnished by the department was, however, not accompanied by any documentary evidence of objections raised by the LAWDA and private hotels", it said.
The CAG report said that land measuring 99.13 kanals identified in January 2012 at Sidhra in Jammu for construction of 400 flats had not been taken over from the Jammu Development Authority due to non-payment of cost of land despite lapse of three years.