Hyderabad: The Comptroller and Auditor General (CAG) has flagged multiple irregularities in land allotments made by the Telangana State Industrial Infrastructure Corporation (TGIIC), including a significant concession granted to Adani Defence Systems and Technologies Limited (ADSTL).According to the CAG report, 20 acres of land were allotted to ADSTL at a concessional rate of Rs 40 lakh per acre, despite the prevailing market rate being approximately Rs 2 crore per acre.The report, tabled in the assembly on Monday, noted that ADSTL had initially requested 50 acres in Hardware Park (Phase II) at Mamidipally near Shamshabad. While the cabinet sub-committee (CSC) agreed to the allotment, it suggested that the company relocate its project to the Aerospace Park at Kongarakalan to qualify for concessional pricing.However, in deviation from the CSC’s recommendation, the industries department and TGIIC (earler TSIIC) proceeded to allot 20 acres at the Mamidipally hardware park itself at the concessional rate of Rs 40 lakh per acre, even though the market value was Rs 2.13 crore per acre.The CAG criticised this decision, stating that the industries and commerce department violated the CSC’s recommendation. The department justified the allotment by citing the need to utilise resumed land and existing structures at the hardware park. However, the audit found this explanation neither acceptable nor justifiable, emphasising that concessional pricing was explicitly tied to relocation to Kongarakalan. The report described the move as an undue benefit extended to ADSTL and noted that any deviation should have been formally referred back to the cabinet committee.The audit also identified several other instances of land allotments at below-market rates in locations such as Gachibowli and elsewhere. These included allocations to Vem Technologies Pvt Ltd in the National Investment and Manufacturing Zone (NIMZ), Zaheerabad; Welspun Group of Companies in the Industrial Park at Chandanvelly; Bhagwati Products Ltd (Micromax), Celkon, and Karbon in the Industrial Park at Gachibowli; and Chiripal Poly Films Limited (CPFL) at the Plastic Park, Mankhal (Expansion). The report also revisited the Electronics and Hardware (EH) policy, introduced in July 2012 by the then united Andhra Pradesh govt, for providing incentives to electronic hardware companies, and even constituted a consultative committee on electronic system design and manufacturing (CCESD&M) for land allotments. The policy aimed to incentivise electronic hardware companies and included provisions for concessional land allotment to a maximum of 25 companies on a first-come, first-served basis, covering about 125 acres.However, the audit found that the industries department extended these benefits unauthorisedly to 39 companies, allotting a total of 169 acres at concessional rates ranging from Rs 60 lakh to Rs 90 lakh per acre, against prevailing rates of Rs 1.58 crore to Rs 2.14 crore per acre.In the case of NIMZ, Zaheerabad, the CAG pointed out that allotments exceeding 50 acres required approval from a committee of secretaries. Despite this, 511 acres were allotted to Vem Technologies Pvt Ltd in January 2021 at just Rs 10 lakh per acre, without following the mandated procedure.Further irregularities were observed in the allotment of land in the Industrial Park at Gachibowli. Bhagwati Products Ltd (Micromax) was allotted land at Rs 10.05 crore per acre, despite the prevailing basic market value being Rs 14.52 crore per acre. The audit noted that this was done without due diligence and in violation of allotment regulations.Moreover, based on the rate offered to Micromax, an additional 2.68 acres of prime land were allotted to mobile manufacturing companies Celkon and Karbon. Notably, the rate used for Micromax itself had been derived from an earlier allotment to Bank of Baroda in August 2013, with a minimum ceiling of Rs 10 crore per acre.The CAG further observed that all three companies—Micromax, Celkon, and Karbon—had failed to establish their units even after five years, as of Dec 2022. Despite this delay, TGIIC neither imposed the applicable penalty of Rs 1.60 crore nor resumed the land.In another case, the cabinet approved the allotment of land to Welspun Group of Companies (WGC) for manufacturing technical textiles at the Industrial Park in Chandanvelly at Rs 13.73 lakh per acre. The audit noted that, considering internal infrastructure development costs borne by TGIIC, the land should have been priced at Rs 22.54 lakh per acre. This discrepancy resulted in a revenue loss of Rs 33.04 crore to the govt and an undue benefit to the company, the auditor said. The report also highlighted irregularities in the restoration of resumed land. In the case of Chiripal Poly Films Limited (CPFL), 30 acres were allotted at Rs 35 lakh per acre in the Plastic Park at Mankhal (Expansion).As per established norms, once land is resumed, any request for restoration should be treated as a fresh application and priced at prevailing market rates. However, in the case of KAP Steel Limited (KSL), which had been allotted 84.88 acres in the Industrial Park at Kothur for steel manufacturing, the process deviated from this rule.The allotment to KSL was cancelled in August 1998, and the land was resumed in phases between Sept 1999 and Aug 2003. Subsequently, after the company was renamed JCK Infra Projects Limited (JCKIPL), TGIIC allotted 39.27 acres of the resumed land to other parties, raising concerns over procedural inconsistencies.
