WE THE PEOPLE
SDA’s failure to recover RS 7.48 crore on account of Rent/ Premium of Shops/ Plots raises many eyebrows
Hence people demand corrective measures to Save State Exchequer from undergoing losses in future
By: Uzair Khan
Srinagar: It would be in the fitness of situation to state that Srinagar Development Authority was established with the objective of promoting and securing the development of the local area of Srinagar city in accordance with the approved Master Plans. To achieve the objectives, the Authority was vested with powers to acquire, hold, manage and dispose of land and other property and carryout building and engineering operations. A close scrutiny of the Authority during 2003-08 has revealed that though it succeeded in generating substantial internal resources, but the main objectives were not achieved fully due to non-implementation of Master Plans. The failure to implement Master Plan of Srinagar City resulted in its unplanned development. While there was a significant increase in revenue generation from internal resources, yet utilization of available resources ranged between 34 and 48 per cent only. Besides works costing Rs. 1.22 crore were got executed by the Authority during 2004-08 without invitation of tenders, in utter violation of Codal requirements. It has come to surface that National Slum Development Project funds amounting to Rs. 2.43 crores were spent in contravention of scheme guidelines. The subsidy for construction of dwelling units under VAMBAY was allowed to non-deserving beneficiaries and lack of internal control and monitoring mechanism has resulted in non-realization of Rs. 7.48 crore on account of premia and rent of built-up assets.
It has also come to light that the Authority, in contravention of Government instruction, allotted in May 2002, two kanals of land at Fruit Mandi, Parimpora to a private party on lease basis for establishment of a petrol pump at a premium of Rs. 6.50 lakh per kanal against the prevailing base rate of Rs. 20 lakh per kanal. This has resulted in loss of Rs. 27 lakh to the Authority.
It is astonishing to learn that 36 plots under HIG/MIG/EWS/LIG categories and 89 shops/flats developed/constructed by the Authority between 1991 and 2006 had remained unallotted as of March 2008 either due to non-advertisement of these built up assets or due to construction thereof in non-viable areas. This has resulted in non-realization of a minimum premium of Rs. 5.88 crore and consequential loss of rentals.
The scrutiny of records has revealed that a Limekiln plant at Pulwama, was closed in the year 1990. The BOD had directed in January 2004 for disposal of the plant by way of auction. The total cost including land, structure and plant/machinery was assessed by a valuer at Rs. 1.36 crore. The Authority had not taken any further steps to dispose of the plant, resulting in locking up of Rs. 1.36 crore, which could otherwise be invested gainfully.
The Authority, despite having a full-fledged recovery wing meant for raising bills against allottees of commercial sites and collection of revenue, had failed to effect recovery of premia and rent of commercial sites viz., buildings, shops and plots etc. due to non-raising of bills/claims timely, serving notices individually or through public media and also due to inaction in invoking the eviction clause in respect of the defaulters. An amount of Rs. 7.48 crore Rent: Rs. 4.34 crore; Premium of Shops and plots: rs. 3.14 crore pertaining to the period 1990-2008 is pending recovery against the allottees.
Hence people demand corrective measures to Save State Exchequer from undergoing losses in future. Whether this is done remains to be seen!
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