Bhubaneswar: The Comptroller and Auditor General of India (CAG) has found gross irregularities in allotment of space by government to various organisations in the capital city’s Unit II market area.
In its report on general and social sector for the year ending March 2015, the CAG said that general administration (GA) department leased 15 shops and residences with 66,610.703 square feet (sqft) area in Bhubaneswar as of March 2015. Examination of sample shopping halls with total area of 42,030 sqft located in market buildings of Unit-II, revealed cases of subletting, unauthorised alteration and addition to the leased premises and occupation beyond the lease period.
As per rules, an allottee cannot sublet a shop or a part of it without the director of estates’ written permission. The auditor noticed that though four out of 15 shops inspected by GA department violated norms, the officials failed to report it.
If an allottee sublets a shop, the allotment must be cancelled from the date of detection. The allottee will have to pay a penalty 10 times the rent for each day of continuance beyond the date of cancellation of allotment.
However, measurement of floor area of 15 shops by the concerned assistant engineer during audit revealed that shopkeepers have occupied 1,13,356.73 sqft space, which is 71,326.73 sqft in excess of allotted space as of October 2015.
Some allottees, who have occupied excess space without permission are – OSWAL and Lal Chand & Sons, United Bank of India, USHA International, Narula Cloth Store, Capital Dress Store and The Z. The rules say that allotment of shops in the capital city should be done either by auction or through selection from amongst the applications received. It also envisages that agreement can be renewed for a maximum period of three years (at a time) after the expiry of first term.
But, CAG found that norms were violated in the examined 15 shops in Unit II market.
The audit noticed that instead of verifying the eligibility of allottees at the time of renewal, the lease period in respect of all 15 shops were repeatedly renewed three to 11 times in their favour or that of their legal heirs and partners.
“However, none of the allottees of these 15 shops were eligible for renewal of lease period as they had either sublet or done unauthorised constructions in violation of the rules,” the report said.
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