Mysuru: A scathing audit report has exposed a plethora of irregularities within the Mysore Urban Development Authority (MUDA), casting a dark shadow over the Congress party’s leadership and raising serious questions about their handling of government affairs. The report, which details a range of discrepancies and omissions, has sent shockwaves through the political establishment and has the opposition salivating for a chance to capitalize on the scandal.
At the epicenter of the controversy is the alleged mismanagement of plots and funds during the tenure of H V Rajeev, leader of the Congress party and served as the president of MUDA. This period also saw key figures also former commissioners GT Dinesh Kumar, Dr DB Natesh, and G Laxmikant Reddy, identified by the Enforcement Directorate as masterminds of irregularities in land allocation, holding positions of power within the organization.
The audit report reveals that a shocking discrepancy of 21 plots exists between the available plots in MUDA’s layouts and the ones audited. Furthermore, an alarming discrepancy of Rs. 90.76 crore was found in the amount received in the account from the auction of commercial and corner plots. The absence of files and documentation regarding these transactions has left auditors with no choice but to express doubts about the legitimacy and transparency of the processes.
In a particularly damning revelation, the audit report highlights that the government auditors were not provided with critical files and records, including those related to the auction of corner and intermediate plots, commercial plots, and civic amenities (CA) sites. This has led to a complete lack of accountability within the organization, raising concerns about systemic corruption and malfeasance.
Audit officers’ discovery
The report reveals that MUDA officials failed to present files and documentation regarding the auction of corner and intermediate plots, resulting in a lack of assurance from the audit that these funds were received in accordance with the rules. Furthermore, the DCB (Department of City Budgeting) has not maintained records in relation to CA plots, including details on how many corner and intermediate plots are left with the authority.
A staggering lack of transparency and accountability has plagued MUDA’s operations. The report mentions that the officials have not presented files related to the allocation of plots, nor have they submitted a compliance report. Moreover, the auditors could not verify whether the reservation policy was followed in the allocation of plots.
This is not an isolated incident. A closer examination of the report reveals that MUD has failed to present crucial information regarding the allocation of CA plots. The auditors had requested files that detailed how many CA plots were sanctioned in 2021-22 and the total number of CA sites registered in the name of the Muda Commissioner. However, MUDA officials have conveniently ignored these requests, rendering the audit inconclusive about the legitimacy of the CA plot allocations.
The lack of transparency has serious implications for MUDA’s financial management. The report raises concerns that a high possibility of financial loss exists due to CA plots being abandoned and outstanding amounts not being recovered. The estimated cash value of CA plots should be recorded in the asset register, but this crucial information was not provided for audit.
In a damning conclusion, the report suggests that the non-provision of these details has made it impossible to verify whether the allocation of CA plots was done as per the rules and guidelines. This is a scathing indictment of MUDAs leadership and the Congress party, which is already facing intense scrutiny over its handling of government affairs.
As the opposition seizes upon this opportunity to attack the Congress party, the party’s leadership finds itself on the back foot, battling to restore credibility and accountability within its ranks. The revelations from the audit report serve as a potent reminder of the need for transparency and accountability in governance, and the Congress party can ill afford to ignore the
Discrepancy of 21 CA plots
A discrepancy of 21 plots has been found between the plots available for auction of corner, intermediate plots, houses and shops in the Mysore Urban Development Authority’s layouts and the plots that were audited.
Also, there was a discrepancy of Rs. 90.76 crore in the amount received in the account from the auction of commercial and corner plots.
During the detailed inspection and inspection conducted by the government auditors of all the transactions of the year 2021-22, dozens of omissions, discrepancies and violations have been found. What is special is that the current Congress government has not given the files to the auditors in this regard.
Details mentioned in the audit report
All these lapses took place during the period when H V Rajeev, leader of the Congress party, was the president of MUDA. Also, GT Dinesh Kumar, Dr DB Natesh, and G Laxmikant Reddy, who were identified by the Enforcement Directorate as the masterminds of the irregularities in the substitution of sites in MUDA, were commissioners during this period.
In MUDA, 1,264 plots, houses, and shops were available for auction in 2021-22. Out of these, 420 plots were disposed of. Of this, Rs 240.48 crore came from the auction. The EMD received Rs. 21.50 lakh from the forfeiture. However, according to the files and documents presented for audit, it is known that the auditors have found that a total of 399 corner and intermediate plots were auctioned in 2021-22.
According to the annual accounts for the year 2021-22, Rs. 1,56,97,64,759 was received from the auction of commercial and corner plots to account (No. 4660) and Rs. 1,74,11,21,902 to another account (No. 9511) making a total of Rs. 3,31,08,86,661. In this, there was a difference of Rs. 90.76 crore. The files and relevant documents in this regard were not presented for audit.
‘Therefore, the audit does not provide assurance that the remaining amount has been received as per the rules from the auction of corner and intermediate plots or that the successful bid amount in the auction has been received in full. Therefore, if any shortcomings are found in the auction process of the corner and intermediate plots of the report line, the officers working in the said line are responsible,’ the report opined.
And the DCB has not maintained the records in this regard. Therefore, it is understood that the report also mentions that it is not possible to know in the audit how many corner and intermediate plots are left with the authority.
The audit has also not ensured whether the reservation has been followed in the allocation of plots or not. Because the officials have not presented the files in this regard to the audit and have not even submitted a compliance report.
Similarly, the DCB has not presented the records and files in relation to the allocation of CA plots to the audit. The auditors had asked the authority to submit files detailing how many plots were sanctioned for civic amenities in the layouts under the MUD in 2021-22. However, the report mentioned that the MUDA officials have not submitted these files for audit review.
Over the years, the authority has sanctioned large civic amenities of various sizes to organizations in major layouts of Mysore for the construction of schools, colleges, hospitals, community halls, welfare centers, government offices and for the convenience of the public.
The number of new layouts permitted in 2021-22, the total number of CA sites to be covered by the authority, the number of CA sites registered in the name of the Muda Commissioner, information on sites pending for registration, reasons for delay, details of the total CA sites covered by the authority through registration so far, details of CA sites pending for renewal and renewed in 2021-22, and information on the action taken in relation to cases pending without renewal were also not presented for audit.
The government auditors do not have any information about whether the building was constructed within the period as per the rules of the authority or the site was left vacant, whether the installments were paid on time, whether it was used for a purpose other than the purpose for which it was given, whether the installments of the lease value paid to the authority were not paid within 90 days as per the rules of the Karnataka Urban Development Authorities, whether the outstanding amount was forfeited by adding 12 per cent, and whether the lease agreement to cancel the CA sites allotted to such organisations was cancelled.
It is learnt that the auditors mentioned in the report that due to the non-provision of these details, it was not possible to verify whether the allocation of these was done as per the rules and guidelines.
‘There is a high possibility of financial loss to the authority due to the CA plots to be allotted to the authority in private estates being abandoned and the outstanding amounts in the allocation of CA plots being abandoned without being recovered.
The estimated cash value of CA plots should be recorded in the asset register. And it should be entered in the asset liability schedule, which is part of the annual accounts. But this detailed information was not provided for audit,’ it is learnt in the report.
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