CAG flays Haryana realty developers
Finds irregularities in deals; says builders earned up to 880 times of the original price
Mar 27, 2015
Source : Business Standard

 

Chandigarh: Real estate developers in earned up to 880 times of the original price of land in a few months, causing substantial loss to the Haryana exchequer, finds a Comptroller and Auditor General of India (CAG)'s report for 2013-2014.

Finding gross violations by developers and the complete absence of monitoring by the state government, Principal Accountant General (Audit) of Haryana Mahua Pal said the government had to forgo sizeable revenue, as a proper mechanism was not in place for approval, scrutiny and monitoring of licences regarding land transfers.

Five licensees sold land for about Rs 268 crore which they had purchased for Rs 52.26 crore, earning a profit of about Rs 216 crore.

At the time of granting in-principal approval and formal approval for transfer of licences, the department of town and country planning did not ensure that the net profit beyond 15 per cent by selling land should go to the state exchequer.

The report says Botil Oil Tools India, formerly known as Baker Oil Tools (Bharat), earned 880 times of the original cost of the land and Sun Star Builders and Witness Construction earned 303 times of the original cost of the land within few months of the grant of licences. Pal refused to divulge the exact amount of the transaction.

In case of the Skylight Hospitality, land was sold to its collaborator DLF Universal at 7.73 times the original cost after the in-principal approval for transfer of licence was granted in April 2012.

Uppal Housing sold land to its subsidiary company, Saumya Realtech, at Rs 69.50 crore in March 2013.

Highlighting the inadequate control over the colonisers, the report also finds Identity Build Tech was granted a licence to develop a Group Housing Colony in April 2012 in Gurgaon. According to the conditions of the licence, advertisement for sale of plots or flats was not to be given before approval of building plan. The coloniser pre-launched the project in April 2012 and issued receipts of booking of flats from 400 customers by collecting Rs 55 crore though building plan was approved in April 2013.

Share purchase agreement was executed on December 18, 2012 between Era Landmarks, Identity Buildtech and Ansal Housing and Construction for purchasing complete shareholdings of Identity Buildtech. It was not disclosed by Identity Buildtech that it had collected Rs 55 crore from the prospective buyers. Neither the amount has been refunded nor had the flats and plots been given to the prospective buyers, says the report.

While the farmers in the state are already protesting against the land acquisition Bill in Haryana, these findings of report might add fuel to the fire that indicates the government's patronage for the private players in land business.

REPORT'S FINDINGS

  • The government had to forgo sizeable revenue, as proper mechanism was not in place for approval, scrutiny and monitoring of licences regarding land transfers
     
  • Five licensees sold land for about Rs 268 cr, which they had purchased for Rs 52.26 cr
     
  • The state's department of town and country planning did not ensure net profit beyond 15% by selling land should go to the state exchequer

 

Latest Realty News

Sobha-Ltd.-introduces-exclusive-luxurious-apartments
Mar 27, 2015
Mumbai: Sobha developers launches Sobha Halcyon
Housing.com-buys-real-estate-forum-IREF
Mar 26, 2015
BENGALURU: Realty portal Housing.com has acquired online discussion site Indian Real Estate Forum in a move aimed at providing content that can help home buyers make informed choices
Farmers-meet-DM-over-land-encroachment
Mar 26, 2015
NOIDA: Farmers from nearly 100 villages in Gautam Budh Nagar met the district magistrate demanding immediate and stringent action against encroachers
CAG-raps-Haryana-govt-under-Congress-regime-for-'undue-favours'-to-Vadra
Mar 26, 2015
Chandigarh: "Undue favours" to builders, including Robert Vadra's Skylight Hospitality, by the Haryana Government during the earlier Congress regime has come under attack from the Comptroller and Auditor General (CAG)
Govt-unlikely-to-let-land-ordinance-lapse
Mar 26, 2015
New Delhi: Prime Minister Narendra Modi has dug his heels in on the contentious issue of land acquisition
Bangalore-based-Mantri-Developers-forays-into-Pune-residential-market
Mar 26, 2015
Pune: Bangalore-based Mantri Developers announced their foray in the Pune's residential segment
Irfan-Razack-becomes-Credai-Chairman;-Getamber-Anand-President
Mar 26, 2015
New Delhi: Realtors' apex body CREDAI elected Irfan Razack as the Chairman and Getamber Anand as President of the association
Fill-Demand-Supply-Gap-in-Housing-with-Low-Cost-Tech:-Minister
Mar 26, 2015
New Delhi: Union Minister Harsh Vardhan has asked scientists to come up with low-cost technologies to fill the demand-supply gap in the housing sector to meet the Government's target of having a roof for everyone by 2022
Stability-setting-in-realty-sector
Mar 26, 2015
Hyderabad: With the State government making up its mind to name the new capital city as Amaravati, a sense of stability is creeping in giving a positive effect to the real estate sector
Piramal-Realty-may-raise-Rs-900-crore-via-stake-sale
Mar 26, 2015
Mumbai: Mumbai-based Piramal Realty, led by Ajay Piramal, is believed to be divesting some stake as it looks to raise Rs 800-900 crore

Latest Realty News Of State

Realty Talk's