CAG Audit Uncovers Major Lapses in Ghaziabad Development Authority
The Comptroller and Auditor General (CAG) has released a comprehensive 446-page audit report on the Ghaziabad Development Authority (GDA), revealing significant deficiencies in its operations between 2017 and 2022. The report identifies critical issues spanning planning violations, enforcement weaknesses, housing delivery failures, and financial mismanagement.
Planning and Master Plan Violations
A central finding of the audit concerns Master Plan 2021. The CAG stated that GDA implemented Master Plan 2021 without obtaining vetting from the NCR Planning Board, which is mandated to regulate regional planning. The audit raised questions about the plan's preparation and adherence, noting that instead of a unified document, GDA created two separate plans—one for Ghaziabad and another for Modinagar—and highlighted violations of zoning regulations.
The report detailed that the authority took four years to prepare the Ghaziabad plan and ten years for Modinagar. It pointed out that the Hindon elevated road, constructed at a cost of Rs 1,089 crore, was not included in Master Plan 2021, and the land-use patterns outlined in the plan were not followed.
Ground-Level Implementation Gaps
On actual outcomes, the audit exposed substantial discrepancies between planned promises and delivered results. Parks and open spaces were intended to cover 2,484 hectares, but only 511 hectares were achieved. Similarly, residential land earmarked at 6,975 hectares translated into just 5,481 hectares on the ground.
The CAG also flagged underperformance in housing for Economically Weaker Sections (EWS). Between 2017 and 2022, against a target of 25,000 EWS units, GDA constructed only 9,960, achieving about 40% of the goal. Another obligation—creating land banks for industrial and residential needs—saw a sharp shortfall, with only 18.3 hectares secured against a target of 300 hectares during the same period.
Weak Enforcement and Environmental Concerns
Regarding enforcement, the report criticized GDA for failing to protect the Hindon floodplains, despite a government order requiring the area to be maintained as a green belt. The CAG noted that illegal colonies proliferated in the floodplains, with little to no action taken by GDA to remove encroachments within 200 meters on both sides of the Hindon river. Google images from 2009 and 2023 were included in the report to illustrate the spread of construction over time.
Financial Mismanagement and Revenue Losses
Financial management drew equally sharp criticism. The auditor reported that over the five surveyed years, GDA failed to generate projected revenue, except in the fiscal year 2018-19, with revenue falling short by 48% to 58%. Additionally, GDA did not utilize an auto-sweep banking facility to transfer surplus funds into higher-interest fixed deposits, resulting in a loss of Rs 73 lakh.
The audit further highlighted weak recovery from defaulters, with unrecovered dues leading to a loss of Rs 64 crore up to March 2022. It also flagged a long-pending inter-authority loan: GDA lent Rs 50 crore to Hapur-Pilkhuwa Development Authority in 2007 for one year at 9% interest, but after 14 years, only Rs 41 crore had been repaid.
Response from GDA
When questioned about the lapses, a GDA official responded, "The report was tabled in the UP assembly. The state government will take note of it. As far as GDA is concerned, all we can say is that the recommendations made in the CAG report will be followed."
