CAG's Report for the Year ended 31 March 2010 -Dept. of MA&UD

Sanctity of Master Plan vitiated by VUDA

 

The deficiencies, incorrect decisions etc. of Visakhapatnam Urban Development Authority (VUDA), constituted in June 1978, extending its jurisdiction to VMC and 4 Municipal Towns, comprising an area of 1,721 Sq. Kms highlighted in CAG's Report for the year ended 31 st March 2010 are reproduced below:

*VUDA which was established for planned development of the City and to improve the quality of life of its inhabitants, failed to achieve its objectives to a large extent. There were huge shortfalls (64 to 100 per cent) in the achievement of the First Master Plan.

*VUDA did not also effectively coordinate with the departments/agencies concerned for implementation of the Master Plan.

*Approvals of change of Land-Use were given on a case to case basis in violation of the Master Plan, conferring undue benefits to the land owners thus, violating the sanctity of the Master Plan.

* Contract management was deficient. There was loss of revenue of Rs.355.23 Crore to VUDA in development of housing projects/satellite townships, sites etc.(at Rachakonda Village). Also, failure of VUDA in ensuring clear title of the land before commencing the Mega Housing Project at Madhuravada, resulted in unintended benefit to the Contractor.

*VUDA / Government sustained a loss of revenue of Rs15.71 Crore due to incorrect decisions by VUDA in sale/auction of Government lands ( at Madhuravada ) 

*Financial management was deficient. The Annual Accounts for the years from 2007-08 to 2009-10 had not been prepared. This is a serious lapse on the part of VUDA. Due to non- preparation of Annual accounts the financial position of the Authority could not be vouchsafed and the possibility of irregularities, frauds,etc remaining undetected could not be ruled out.

* Maintenance of cashbook was deficient and reconciliation of Cash balances was not done with the Bank Statements. Internal audit was also absent. Thus there was no assurance to VUDA that the Rules and Procedures were being complied with by various wings of VUDA

*Proper Control mechanism was not in place for redressal of Public Grievances. This was indicative of the lack of seriousness of the Authority in handling its mandate

 

 Observations regarding Hyderabad Metropolitan Development Authority (HMDA)

 

 *Non-adherence to the tender conditions by the HMDA in auctioning the land for  development of land in the adjoining area of Hyderabad city 
  resulted in undue benefit  of Rs.239.88 Crore to the bidders.

 

* Due to non-incorporation of the safeguards in the agreements, the benefit of post  tender reductions in quantities did not accrue to
   Government in the construction work of PVNR Elevated Expressway Corridor. This resulted in an undue benefit of Rs.86.67  Crore

    to the Contractor.

 

* Deficient bidding procedure by HMDA led to award of work for a cost higher than the  lowest quoted cost by Rs.23.68 Crore in

  Phase-II of ORR Project in Hyderabad 

 

*In addition, the observation made in respect of VUDA regarding Change of Land- Use  is also applicable to HMDA, which resorted to change of land-uses, including the ones covered by G.O.111, on case to case basis, amounting to violation of "Sanctity  of The Master Plan", 

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