Date:10/05/2005 URL: http://www.thehindu.com/2005/05/10/stories/2005051010240400.htm

New Delhi

CAG pulls up DDA for flouting rules

Staff Reporter

`27 societies were found having not even the money to meet the cost of land'

NEW DELHI: The Delhi Development Authority failed to ensure the financial status of the housing societies before allotting land to them as required under the Delhi Development Authority (Disposal of Developed Nazul Land) Rules, 1981, the Comptroller and Auditor-General report for the year ended March 2004 has noted. It further said 90 select cases were taken up for detailed scrutiny and 27 societies were found having not even the money to meet the cost of land.

According to the report, 46 of the 90 schools test-checked in audit were yet to be functional despite lapse of the stipulated period of two yeas. This was partly attributable to failure on the part of the DDA to ensure sufficiency of funds by societies before allotting land to them.

The CAG report said Rule 20 (d) of Nazul Rules stipulates that no allotment shall be made unless the institution was in possession of sufficient funds to meet the cost of land and construction of building.

This provision was made to ensure that the construction of building by the institution was completed within a reasonable time so that the purpose of allotment was achieved. But the report said, despite the clear stipulation the DDA failed to ensure the financial status of the societies.

As a result, out of the 90 selected cases for detailed scrutiny, the detailed financial resources of 27 societies were not enough to even meet the cost of land and the stipulated two-year period had lapsed in 15 of these 27 cases.

Further, on ground of inadequacy of funds, 27 societies sought and were granted extensions and 17 societies were granted permission to mortgage the allotted land to raise loans to meet the cost of construction and so the land was allotted at concessional rates to societies that were otherwise ineligible as they did not possess the necessary resources, the report said.

Lastly, the DDA also failed to initiate any action to recover outstanding dues of Rs 1.88 crores from 89 societies despite adequate powers to recover the dues.

As such the report states that "both the DDA as the land owning agency as well as the Directorate of Education as the sponsoring department had failed to fulfil their joint responsibility of ensuring adherence to the terms of concessional allotment of land''.

It further said: "There was no coordination between the Directorate and the DDA to ensure adherence by the allottees of the obligatory terms and conditions of the allotment of the land nor was there any mechanism to detect deviations, monitor adherence or take action against defaulters''.