The CAG report has indicted former Maharashtra CM Vilasrao Deshmukh's educational institute for reaping undue benefits by allotting land in the MIDC area in his hometown Latur.
NAGPUR: The CAG report has indicted former Maharashtra chief minister Vilasrao Deshmukh's educational institute for reaping undue benefits by allotting land in the MIDC area in his hometown Latur.
The annual audit report of Maharashtra Industrial Development Corporation (MIDC) done by the Comptroller and auditor general has indicted the Vilasrao Deshmukh Foundation, Mumbai, for reaping undue benefits during the tenure of incumbent chief minister Vilasrao Deshmukh.
The MIDC has suffered losses to the tune of Rs 1.19 crore in allotment of educational plots and thereby extended the undue benefit to the Trust, the CAG report of 2007 said.
The said report was tabled in the state legislature on the last day of winter session in Nagpur.
CAG report noted that MIDC received a 'suo moto' application from Deshmukh Foundation in 2001 seeking allotment of 3.56 lakh square metres for establishing higher educational campus at Deshmukh's hometown Latur.
It also demanded 20 to 25 acres of land in November 2005 for developing a play-field on the campus.
The MIDC by an amendment in April 2002 changed the policy of allotment of plots to educational institutions.
The allotment of plot was to be made from 'amenity zone' of MIDC and price was 50 percent of the prevailing market rate.
MIDC alloted 1.20 lakh square metres for college and 0.80 lakh square metres for playground in March-April 2006 and received a total lease premium of Rs 41.50 lakhs.
It was revealed that the Institution had done nothing to indicate that it had fulfilled the laid down eligibility criteria.
The land alloted was in excess of specified in the policy and additional area was not sanctioned as per prevailing rate in the market. This has resulted in revenue loss of Rs 30.62 lakhs for main area and for play-field loss of Rs 35.65 lakhs, CAG noted.
Audit report further said that in Latur Industrial Area only 35,000 square metres was available for 'Amenity Zone' for allotment to educational institutions. Though, sufficient land was not available but MIDC carved out 84,700 square metres additional plots from commercial plots and thus MIDC suffered an additional loss to the tune of Rs 52.94 lakhs.
Undue benefit was extended to the Trust and the MIDC suffered a total revenue loss worth Rs 1.19 crore in allotment of these plots, the report noted.
Though the Foundation maintained that allotment of land was made on applications as per prevailing policy and in a transparent manner. There was nothing on record regarding the fulfillment of eligibility criteria by Foundation, the report
said.
Moreover, there was no wide publicity as per requirement to attract other eligible institutions and hence the allotment lacked transparency, the audit report stated.
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