The RIICO’s Infrastructure Adviser, Vijaypal Singh, admitted that such land cannot be sold with its present status as the land has “ zero” return value.
The state government’s investment wing RIICO possess 740.47 acres of encroached land which it is unable to sell off for industrial use. The purchase price of this encroached land is Rs 72.84 crore.
The RIICO’s Infrastructure Adviser, Vijaypal Singh, admitted that such land cannot be sold with its present status as the land has “ zero” return value.
The RIICO’s auditor SL Gangwal & Co in its audit report of the year 2015-16 has pointed out that because of the lapse on the part the RIICO in not conducting proper physical verification of the encroached land this large chunk of land has become “non-productive”to the corporation. The auditor has also pointed out that the RIICO has not been able to determine the current value of the land and the revenue it could generate by selling it off. The RIICO has total land stock possession which according to the auditor’s report of year 2015-2016 is worth Rs 2267.62 crore and out of this the percentage of the encroached and disputed land is 3.21 per cent. RIICO has not taken into calculation the amount of Rs 72.84 crore while valuing its total land stock.
Vijaypal Singh said due inspection of the land is done at the time of acquisition and the issue of encroachment is also dealt by the competent authority and efforts are being made to free the land from encroachment through legal processes.
The RICCO is yet to obtain the ownership rights on large part of land which has been made a part of its land stock. However, such land is often allotted by RIICO even before obtaining the ownership rights after acquisition of the land. RIICO is trying to get the ownership of such land in question.
RICCO while disbursing the land take into account the purchase, cost plus the amount of development expenses on such land.
The RIICO’s accounting policy states that the valuation of the land stock is done on the basis of amount paid for acquiring the land or the price of the land at the time of disbursement which ever is low.
Non-productive
The RIICO’s auditor SL Gangwal & Co in its audit report of the year 2015-16 has pointed out that because of the lapse on the part the RIICO in not conducting proper physical verification of the encroached land this large chunk of land has become ‘non-productive’ to the corporation. RIICO possess 740.47 acres of encroached land.
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