CAG Audit Uncovers Widespread Irregularities in Uttar Pradesh Industrial Development
A recent report from the Comptroller and Auditor General of India (CAG) has exposed substantial delays and numerous irregularities in projects managed by the Uttar Pradesh State Industrial Development Authority (UPSIDA). The audit findings, which were presented in the UP Assembly on Thursday, cover the period from 2018-19 to 2022-23, revealing systemic issues in land acquisition, financial management, and project execution.
Incomplete Projects and Land Development Issues
The CAG report highlighted that a proposed multi-functional and industrial zone, along with a tourism-based nature conservation zone situated between Lucknow and Unnao, remains incomplete even after five years. Despite the approval of a master plan that made 29,996 hectares available for development, the necessary infrastructure and construction have not been finalized, raising concerns about the authority's efficiency and planning capabilities.
Financial Mismanagement and Fraudulent Activities
One of the most alarming findings involves the awarding of 15 projects, collectively worth over Rs 255 crore, to firms whose documents were later discovered to be fake. This led to the cancellation of agreements and significant project delays. Additionally, the audit identified 27 works, with costs ranging from Rs 1 crore to Rs 63 crore, where the financial capacity of bidders was not properly assessed, potentially compromising the quality and reliability of the contractors involved.
- Failure to recover liquidation charges in 16 works.
- Non-collection of quality testing fees from contractors in 34 works.
- Unauthorized expenditure of Rs 7.67 crore on maintenance of industrial areas that fall under the jurisdiction of urban local bodies.
Land Allotment and Recovery Deficiencies
The CAG report criticized UPSIDA for not meeting land allotment and recovery targets over a six-year period. It cited specific cases where plots were allotted despite incomplete applications, including one instance where a 3,939 square meter plot was sold for Rs 93 lakh, and another where a 5,018 square meter plot was allotted to an ineligible applicant for Rs 1.10 crore. These actions suggest a lack of due diligence and adherence to regulatory standards.
Compliance Violations and Premature Operations
Further irregularities were noted in the operations of 37 firms that began production prematurely, without proper approvals. The audit also raised questions about tax payments and fixed deposits made in violation of established norms, indicating broader compliance issues within the authority's oversight mechanisms.
The CAG's findings underscore the need for improved transparency, accountability, and financial discipline in UPSIDA's project management to ensure timely and efficient industrial development in Uttar Pradesh.
