CAG Report: Unutilised Industrial Plots in Trans Thane Creek Area

Nagpur, Dec 20 (PTI) The CAG has pointed out that 3,053 out of 3,284 industrial plots allotted by the Maharashtra Industrial Development Corporation (MIDC) in the Trans Thane Creek (TTC) area are lying unutilised.

The CAG report on the performance audit of MIDC's role in industrial development during 2014-21 also observed systemic delays in the implementation of revised land rates, which caused revenue loss, and instances of MIDC making direct allotment of plots to ineligible allottees contrary to the policies.

The report was tabled in the assembly on Wednesday by state finance minister Ajit Pawar on the last day of the winter session of the state legislature.

The MIDC had decided (in June 2017) to implement a scheme in the TTC industrial area, whereby allottees (including closed industries) were granted the opportunity to return excess/unutilised land. It was further directed to take action against that allottee, who did not participate in the scheme as per section 42A of the MID Act, it said.

"Audit observed that none of the allottees participated in the said scheme and MIDC had not taken any action for acquisition of an unutilised portion of plot till date (December 2021)," as per the report.

Data analysis concerning TTC IA (industrial area) revealed that only 231 (7%) out of 3,284 allottees had fully utilised their plots. In the case of the remaining 3,053 allottees, land admeasuring 60.51 lakh sqm was lying unutilised, it said.

Data analysis concerning allottees from the other 158 industrial areas revealed that only 1,687 (5%) out of 34,574 allottees had utilised maximum FSI. There was unutilised land admeasuring 12.15 crore sqm with 32,887 allottees, as per the report.


The report has pointed out that the policy of fixation /revision of land rates was not appropriate.



"Systemic delays in implementation of revised land rates were observed leading to loss to MIDC. MIDC allots plots of land on a lease basis for a period of 95 years on recovery of upfront lease premium at rates fixed from time to time," it said.

Recovery of transfer fee, charges for sub-letting, extension, conversion, compounding etc. are also based on the land rates fixed by MIDC. The audit observed that MIDC had not devised any methodology/weightage formula for the revision of land rates and rates were revised uniformly in all the IAs on an ad-hoc basis without any cost analysis/justification on record, as per the report.

"MIDC made direct allotment of plots to ineligible allottees contrary to the laid down policies (e-bidding, waiting list, priority and expansion). Further, allottees were issued offer letters for allotment of land despite non-availability of carved-out plots in violation of MIDC Regulations," the report said.



The report pointed out instances of "undue concession to allottees in the recovery of revenue from lease premium, transfer charges, Urban Land Ceiling (ULC) exemption transfer charges, extension charges and sub-letting charges".

Irregular grant of instalments for payment of lease premium and non-forfeiture/refund of lease premium in violation of regulations/policy were also observed, it stated.


"Lack of system for periodic revision of water charges and service charges from the allottees was observed which led to short recovery of expenses. MIDC had not levied and recovered Goods and Services Tax on non-exempted services from the plot holders leading to non-payment of statutory dues," the audit report said.

There was the absence of an effective system to monitor cases of non-development of plots/obtaining the Building Completion Certificate (BCC) within the stipulated time limit, it added.

"The MIDC did not initiate prompt action for resumption of plots and timely issue of notices for recovery of extension charges. Instances of unauthorised sub-lease and change in use of allotted plots, lack of system for monitoring, removal of encroachments and irregular allotment of land to encroachers was observed," the report said.