CAG flags lease violations by govt agencies in Rajajinagar

BENGALURU: The Comptroller and Auditor General of India (CAG), in its report for the period ending March 2023, has flagged violations in leasing and construction conditions by two government agencies in Rajajinagar. It also noted that the agencies failed to submit the khata documents to support the works undertaken. The audit found that the Karnataka State Construction Corporation (KSCC) obtained the khata for 4,180 sqm of land with a 332.81 sqm PWD office in Rajajinagar in the name of its Chairman, which is illegal. The land had been leased to KSCC in August 1984 at Rs 5,000 per annum and later renewed in August 2014 at Rs 5,000 per month. The CAG said an annex building was constructed without prior permission from the PWD, and the plan was not approved by the Chief Architect. Further, KSCC sublet the property to five tenants, including three state government offices, one joint-sector company, and a private firm. KSCC was earning Rs 2.28 crore in annual rent as of March 2023, and collected a total of Rs 13.19 crore between October 2014 and September 2023. The auditors noted this violated the lease agreement, which had granted KSCC the land for 30 years. Similarly, the Karnataka Road Development Corporation Limited (KRDCL) was found to have constructed a seven-storey building on leased land in Rajajinagar, despite permission being granted only for five floors. The building also violated Floor Area Ratio (FAR) norms and lease conditions. The land, measuring 2,955 sqm, was leased to KRDCL for 30 years from April 2013 at an annual rent of Rs 14.78 lakh. The agreement stipulated a five-floor building with a maximum height of 24 metres, an FAR of 2.25, and a prohibition on leasing or subletting. The audit further noted that the government permitted KRDCL to sublet the property in March 2018. While KRDCL delayed lease payments of Rs 1.18 crore by one year, interest on the delay was not collected. The building included two basements and five floors, which auditors said violated FAR rules despite the governments defence.