"The state government transferred over 9,479 acres of land during years 1974 and 2003 to JDA for all round development of Jammu city," the CAG said in its report for the year ended March 31, 2015.
The report, which was tabled in the Assembly, said, "Audit observed that the land measuring 7,243 acres had not been demarcated."
The authority was not able to get the entire land transferred by the state government in its name and take physical possession thereof, it said.
As the audit body sought a clarification from authorities over massive encroachment of the land and failure of demarcation of 7,243 acres of land transferred by the government, Director Land Management (DLM) stated that 235 acres of encroached land have been retrieved and the rest was under unauthorised occupation.
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CAG further pointed out that the land acquisition
proceedings at 13 places involving 1,213 acres of land was stalled due to faulty land acquisition process.
The audit body said that the reply was not convincing as no land could be acquired by JDA during the five-year period from 2009 to 2014 as a result of which actual development could not take place as conceived in the masterplan.
Expressing serious concern, the CAG said 86 acres of land have been re-occupied by people out of the 1,234 acres of land acquired by JDA at Sidhra in the outskirts of Jammu city.
CAG further pointed out that 51 acres of land was re-occupied by its ex-owners out of the 87 acres, even after its acquisition and making final awards.
Acquisition of land in Channi Rama, Bahu Rakh and Nagrota are pending due to a stay issued by the High Court and case of land acquisition at Kot Purkhoo measuring 138 acres of land is pending with Financial Commissioner (Revenue), it said.
It has also asked the government to vacate the encroached land.