Rs13crore taxes and duties waived off for Lavasa: CAG

The report of the Comptroller and Auditor General (CAG), yet to be tabled in the state legislature, has mentioned the undue favouritism given to Lavasa that led to a revenue loss of Rs13 crore.

The project was given the concessions in stamp duty (Rs4.31 crore), registration (Rs5.30 crore) and nazarana (Rs3.71 crore) taxes despite having just ‘industry’ status; industry projects do not enjoy these concessions.

The report, expected to be tabled early next week has an entire chapter on the irregularities in the Lavasa project. The chapter was not part of the 35 pages that were leaked last week. The report also has stated that Pune is facing an acute shortage of water due to the barrages built on the rivers in the area of the Lavasa project. It also has stated that the irrigation in Daund, Indapur, Baramati districts has been largely affected due to these irregularities.

According to the report, in January 2007, the then chief minister, irrigation minister, irrigation secretary and an NCP leader visited the site and decided to offer it the status of special planning authority. The decision, announced in July 2008 enabled the government to develop the project as a hill station. 

The report has stated that the additional land of the Krishna Valley Development Corporation (KVDC) should have been utilised in public interest. The 128 hectares ‘under water land’ belonging to KVDC and other land was given to the project at just Rs2.75 lakh annual charges.

The report is expected to mention a few more ministers, including a former chief minister.