The decision of the Non-Gazetted Officers' Association (NGOA) of Karwar to allot shops in the complex built by it to private parties without auction has led to a controversy. A major portion of the complex was constructed using government funds.

The Karnataka Rakshana Vedike (KRV) has threatened to file a complaint against NGOA if it inaugurates the building on June 2 and allots shops to some private parties as decided at the association's general body meeting.

N. Datta, district president of KRV, alleged that there were irregularities in the distribution of shops. M.N. Naik, president of Karwar NGOA, said that some vested interests were trying to create a controversy. Funds had not been misused as alleged, he said. He said the building had been constructed at a cost of Rs. 45 lakh. The government had contributed Rs. 25 lakh and a local MP Rs. 10 lakh from his development grant. This amount was not sufficient to complete the building, and some donors contributed Rs. 9 lakh on the assurance that shops would be allotted to them. So the association did not hold any auction, Mr. Naik said. For this, the association had taken permission from the Deputy Commissioner. The general body of the association also approved it, he added.

Disputing this, Mr. Datta said NGOA should reveal the names of the donors and details of the receipt and audit of the funds.

Mr. Datta said if the NGOA went ahead with its plan to allot shops without an auction, a complaint would be lodged with the Lokayukta against its office-bearers and members.