Goa govt loses Rs 107cr as TCP gives free FAR to 321 commercial units

Panaji: Goa has lost Rs 107 crore as the town and country planning (TCP) department gave concessions to commercial establishments by not levying fees for additional floor area ratio (FAR), a Comptroller and Auditor General (CAG) report has said. But the loss shoots up to over Rs 2,000 crore if it is calculated on the rate recommended by the finance department, the audit report said.

The TCP department granted 10.7 lakh sqm additional FAR to 321 commercial establishments on their request without levying any fees, while the finance department had directed the TCP to charge Rs 1,000 per sqm on the additional FAR and height granted to the commercial establishments.

“Due to non-levy of any fees while granting additional FAR to the commercial establishments, there was a loss of Rs 107 crore to the state exchequer,” the report said.

The audit report also said if the rate, as recommended by the finance department, “is calculated on the basis of Rs 20,000 per sqm charged for four-star and five-star hotels, which are commercial establishments, then the loss of revenue amounts to Rs 2,147 crore”.

But the ceiling for the grant of additional height and FAR was left open without any limit. In the absence of any provision for levy of fees for the grant of additional FAR and height, the TCP department granted additional FAR to 321 commercial establishments free of cost.

A senior audit officer said the TCP department, through a notification on Aug 9, 2023, categorised the FAR. Thereafter, the department amended and inserted a new clause (2) under 6.1.1 of the regulations, whereby it was stated that “govt, on recommendation of the TCP board, shall grant additional height and FAR to the proposals on a case-to-case basis in consideration of the locational aspect, nature of development, use proposed, information available, and any such other criteria, if required. Such relaxation shall, however, not be relaxed for more than 20% permitted in the prevailing regulations.”

But within 12 days, through another notification on Aug 21, 2023, the TCP department deleted the earlier clause: “…such relaxation shall, however, not be relaxed for more than 20% permitted in the prevailing regulations,” thereby not capping the ceiling limit.

In 2015, the TCP department through a notification on July 2 had said four-star and five-star hotels may be granted “an additional FAR of 20% on the recommendation of the committee and on the approval of govt”, but on payment of Rs 20,000 per sqm.

As the 321 commercial establishments were set up for profit motive, the TCP department should have levied the fees in line with those charged for four- and five-star hotels, the report said.

The report also said the rate prescribed by the finance department needs to be reviewed as it was minimal and there was no slab for various categories (individuals, commercial establishments) for the grant of additional FAR and height.

The TCP department through the Goa Land Development and Building Construction Regulation, 2010, regulates building construction in Goa. The regulation specifies technical parameters like FAR, height, amenities, water supply, sewerage, and fire safety. The technical parameters differ from zone to zone, as well as the size of the building and plot.