CAG flags irregularities, delays in UPSIDA works

Lucknow: A Comptroller and Auditor General of India (CAG) report flagged major delays and irregularities in projects undertaken by the Uttar Pradesh State Industrial Development Authority (UPSIDA). The audit report, tabled in the UP Assembly on Thursday, covered 2018-19 to 2022-23. According to the report, a proposed multi-functional and industrial zone, along with a tourism-based nature conservation zone between Lucknow and Unnao, remained incomplete even after 5 years. A total of 29,996 hectares were made available after approval of the master plan. However, development has not been completed.
The CAG raised questions over land acquisition, allotment of industrial plots, recovery of maintenance charges, and overall financial management. The report said 15 projects worth over Rs 255 crore were awarded to firms whose documents were later found to be fake. Agreements were cancelled, causing delays. In 27 works costing between Rs 1 crore and Rs 63 crore, bidders' financial capacity was not properly assessed. In 16 works, liquidation charges were not recovered. In 34 works, quality testing fees were not collected from contractors. The authority also spent Rs 7.67 crore on maintenance of industrial areas falling under urban local bodies. The audit said land allotment and recovery targets were not met over 6 years. It cited cases of plots being allotted despite incomplete applications. In 1 case, a 3,939 sqm plot was allotted for Rs 93 lakh. In another, a 5,018 sqm plot was allotted to an ineligible applicant for Rs 1.10 crore. The report also flagged premature production by 37 firms and questioned tax payments and fixed deposits made in violation of norms.