CAG Reveals 81% of Allottees Didn’t Receive Yamuna Eway Plots

24 Dec 2024 CW Team

The Comptroller and Auditor General of India (CAG) found that between 2013 and 2021, the Yamuna Expressway Industrial Development Authority (YEIDA) allocated 2,428 industrial plots covering 24.6 million square meters. However, lease deeds, or registries, were completed for only 453 plots, which means that 81 per cent of allottees never received possession.

Moreover, for the plots that had been registered, no industrial units had been established on the land by at least April 2022, as stated in the CAG’s report. The issue was also present in other land categories. Between 2008-09 and 2020-21, YEIDA allocated 30,675 plots across industrial, institutional, mixed-land use, commercial, and residential categories. Of these, 1,666 plots (5 per cent) were either cancelled or surrendered, and lease deeds were not executed for 23,832 plots (82 per cent).

This audit report, which represents the first such assessment of YEIDA by the central auditor, noted that allotments had been made based on interviews rather than objective criteria, compromising transparency. Furthermore, the absence of financial and technical eligibility assessments for larger plots exacerbated the situation. YEIDA's delay in executing lease deeds and its failure to provide land to investors despite allocations resulted in significant project delays, with some projects delayed by as much as 12 years. This inefficiency led to a loss of Rs 1.22 billion in lease rent, according to the CAG.

The auditor also revealed that the initial allotment of industrial plots over 2,000 square meters relied on interviews, granting discretionary power to the plot allotment committee. Additionally, irregularities in location charge policies affected YEIDA’s revenue, as plots in preferred locations, such as those near wide roads or green belts, were not consistently charged location fees.

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