CAG performance audit report highlights lack of 'probity, integrity and ethics' of Noida authority

The Comptroller and Auditor General of India (CAG), in its performance audit report tabled in the Uttar Pradesh Assembly on Friday, has brought to light the gaps in the governance structure of the New Okhla Industrial Development Authority (NOIDA). The CAG report points out several anomalies and discrepancies that caused huge losses to the exchequer between the financial years 2005-06 and 2017-18.

From land acquisition and allotment of properties to other discrepancies have affected industries and residents, specifically homebuyers, it pointed out. The report pointed out the fact that the absence of any internal audit led to the unchecked violation of rules, orders and procedures. 

Subsequently, this led to the failure to achieve the objectives of Noida, leading to losses to the Authority and the government to the tune of thousands of crores of rupees, the CAG report cited. It also led to distress for end-user stakeholders such as homebuyers, who invested their life savings in schemes of the Noida authority. 

The CAG report was on the Performance Audit Report on Land Acquisition and Allotment of Properties in Noida in Uttar Pradesh, 2021, and was tabled by Parliamentary Affairs Minister Suresh Khanna in the assembly on Friday. It was in July 2017 that the Uttar Pradesh government decided to order an audit of Noida and three other industrial development authorities.

What did the audit report find?

The audit report found issues in the allotment of plots for housing projects, farmhouses and Sports City.

Residential development became the predominant activity, with as much as 52% of land allocation focusing on the same.

The report also points out that in the course of land acquisition, 'the rights of farmers were side-stepped through misuse of statutory provisions'.

The allotment of properties was full of instances of lack of due diligence, contravention of rules and orders, misrepresentation and willful concealment of facts.

The report said the findings bring out serious lapses of probity, integrity and ethics in the governance of the Authority.

The report flagged excessive use of the urgency clause to acquire land under the Land Acquisition Act 1984.

The invocation of this clause enabled the Collector to dispense with landowners' rights with respect to hearing their objections while acquiring land.

The CAG audit report findings say that approximately 80% of the land was acquired by using this provision.