The Comptroller & Auditor General (CAG) has rapped the Maharashtra government for total lack of transparency in the selection of the Lavasa hill station project in Pune district. The project, which has recently received environment clearance with certain conditions by the ministry of environment and forests, is being developed by Lavasa Corporation, an arm of Hindustan Construction Company.
Further, CAG in its scathing report for the year ended March 31, 2011, which was today tabled by the deputy chief minister Ajit Pawar in the state assembly, observed that the entire regulations and amendments to the existing laws and procedures made by the state government were propelled by private interests for setting up the Lavasa project alone. The amendments, which diluted well established government procedures, were made to ensure that Lavasa Corporation had a free hand to develop the project to serve its own commercial interests at the cost of public interest.
Further, granting of special planning authority (SPA) status to Lavasa Corporation without any control by the government left scope for irregularities, perceived conflict of interest and violation of environment laws. Though the state government was required to supervise the activities of Lavasa Corporation, they did not do so.
More importantly, CAG said the Maharashtra Krishna Valley Development Corporation (MKVDC), which was under the jurisdiction of the then irrigation minister Ajit Pawar, irregularly leased land its possession admeasuring 141.15 hectare in August 2002 at a nominal lease rent of Rs 2.75 lakh per annum to Lavasa project. The land was incidentally acquired for the irrigation purposes. Though Lavasa Corporation, which is a private agency was given the possession and management of water from two embankments, no deterrent clause was incorporated for any violations in the agreement executed between MKVC and Lavasa Corporation.
In the absence of any public purpose being served, CAG said exemptions and concessions given to Lavasa Corporation were unwarranted and not in piblic interest. The government had no knowledge of sub lease of land by Lavasa Corporation to private agencies on long term basis. Requisition permissions of government and collector were not obtained by Lavasa Corporation for purchase of tribal land. The state government at the highest level and its agencies at executive/implementation level went out of its way to facilitate a single project, with scant regard for ensuring compliance to its own conditions laid down for the project and disturbing the already econologically fragile environment.
Moreover, CAG said the state government should have carried out feasibility studies for developing areas across the state and also ensured wide publicity of the policy/regulations to broad base the participation of private agencies considering the broad objectives of developing hill station type areas with private participation and the numerous concessions and facilities which wer offered towards the stated objectives o the private partner. According to CAG, approvals for Lavasa project and increase in the area were given without environment and cabinet approvals. The urban development deparment should have accorded sanction for development of hill station on the basis of a study report on these issues, in consultation with the envirnment department and industry, energy and labour department. A cabinet approval for the same was also necessary consiering its long term ramifications but these requirements were bypassed.
