The Karnataka Industrial Areas Development Board (KIADB) has several flaws in land acquisition, and the action plans for land acquisition as envisaged in the 2009-14 and 2014-19 industrial policies were not prepared.
According to the Comptroller and Auditor General (CAG) of India report on the economic sector, against the 1.15 lakh acres identified for land bank, 50,887 acres were notified and only 21,486 acres were actually acquired. The process of notification and acquisition of lands for creation of lands bank was unplanned, it said.
The CAG report ending March 2017, which was tabled in the Legislative Assembly on Thursday, revealed that 42 land acquisition proposals were approved in 2011-17 without technocrat feasibility studies.
Unplanned acquisition led to an idle inventory of 6,593 acres of developed land, valued at ₹6,000 crore, and 30,507 acres of undeveloped land, valued at ₹3,172 crore.
Irrigation projects
The CAG report also pointed to a lacunae in planning, delays owing to land acquisition, approval designs, and non-synchronisation of associated works with main works that contributed to delays in 14 medium irrigation projects coming under the purview of Cauvery Neeravari Nigam Ltd.
The audit had selected 19 projects for review. Only three were completed on time.
Meanwhile, the report on urban local bodies (ULBs) revealed that the growth rate of remittance of various kinds of cess levied on property tax did not correspond with the growth rate of collection between 2012-2013 and 2016-2017.
Thematic audit on collection and remittance of cess was conducted through test check of records at 32 ULBs. “Non-adherence to the provisions of various Cess Acts led to non-levy of cess. Seventeen of the ULBs had failed to levy and collect ₹53.85 lakh as health cess on ₹3.59 crore collected as advertisement tax from 2012-2013 to 2016-2017. Twenty-one had not levied urban transport cess of ₹69.28 lakh on property tax of ₹34.64 crore collected in 2013-2014,” the report said.
Revenue loss of ₹440 crore
A random test check of records in VAT, State Excise, Taxes on Motor Vehicles, Stamps and Registration Fee, and Mines and Geology by the CAG has revealed short levy or loss of revenue to the tune of ₹440.95 crore during 2016-17.
The CAG expressed concern that its inspection reports (IRs) detailing the irregularities detected are not being complied with. While one month is the deadline for compliance, 2,282 IRs involving ₹2,010.14 crore were pending as of June 2017.
The CAG also discovered that the Excise Department, not keeping pace with technological advancements, only provided an additional margin of rectified spirit, which went untaxed. Audit analysis revealed that this additional margin may have varied in the range of 2.19 crore to 4.23 crore bulk litres of rectified spirits, which works out to a minimum revenue between ₹633.32 crore and ₹1,222.62 crore if converted to potable alcohol.
