Ghaziabad: A CAG report has underlined how UP govt’s failure to pass on a 2% infrastructure cess — collected through stamp duty from property buyers and meant to be shared with various agencies — hurt Ghaziabad Development Authority’s finances for years by choking the key revenue stream.The audit noted that between 2017 and 2022, GDA raised demands of Rs 317 crore from the state govt towards its share of the cess. With the money still not released, the outstanding amount climbed to Rs 585 crore by Sept 2023, the report said, recommending that the state “unfreeze” the funds.Linking the pending cess to GDA’s weak revenue position, CAG observed that — except in FY 2018-19 — GDA’s revenue during 2017-22 was lower by 48% to 58%, and that non-release of the infrastructure fund, described as a major source of revenue, was among the reasons.A GDA official confirmed the build-up of dues. “It’s true that till Sept 2023, the amount that the state govt owed to GDA increased to Rs 585 crore,” the official said.The official added that the situation began to change after a policy decision. “In Aug 2024, UP cabinet approved a proposal to transfer infrastructure cess directly to development authorities and civic bodies. Since 2025, we received a major part of the held-up infrastructure fund. As of now, a little over Rs 43 crore is pending with the state govt,” the official said.The issue had also reached courts earlier. After repeated requests by the development authority and GMC failed to yield results, a former councillor filed a PIL in Allahabad High Court in 2022, arguing that the non-release of funds was affecting development work in the city. The infrastructure fund is counted among the main revenue sources for such agencies, alongside internal receipts such as house and sewer tax, mutation charges and rent, and is used for development works.In 2013, the then SP govt amended the rules so the cess was routed directly into the state exchequer and released later to civic agencies.
