CAG Report Pulls Up Rajasthan Corporations

Jaipur, May 20: | Updated: May 21 2003, 05:30am hrs
The Comptroller and Auditor General has has pulled up leading state-run corporations in Rajasthan for not only failing to recover the dues but also granting undue favours to certain customers, causing financial huge losses. The corporations which have invited the wrath of CAG are the Rajasthan State Industrial Development and Investment Corporation (Riico), Rajasthan Financial Corporation (RFC) and Rajasthan State Mineral Development Corporation.

A glaring example is that of Riico which granted undue favours to its beneficiaries. The corporation was unable to recover additional charges on the corner plots allocated by it, which led to a loss of around Rs 38.14 lakh.

The Riico board had in March 2001 allotted six corner plots to three entrepreneurs at the Sitapura industrial town. But despite the provision of charging 10 per cent additional development charges on these six corner plots, the corporation had waived these charges causing a loss of Rs 38.14 lakh, says the latest CAG report.

It can be noted that the infrastructure development committee of Riico is empowered to fix or revise the rates of the development charges on industrial plots.

In another anomaly, Riico had acquired 46 bighas of land for expanding its industrial area near Sanganer at a much higher price than what was demanded by the very plot owners. The deal got into a controversy with the owners filing for less compensation from Riico. Even as the legal advisor had called for non-payment of any additional payments until the state high court gave its verdict, the board paid up to Rs 44.64 lakh to two parties.

On similar lines, Rajasthan Financial Corporation had granted undue subsidy to ineligible units and later could not get back reimbursements worth Rs 24.24 lakh.