CAG flags Rs 255.75 crore contracts awarded on fake documents

Lucknow: A report by the Comptroller and Auditor General of India has raised serious questions over the functioning of the Uttar Pradesh State Industrial Development Authority, revealing that industrial development contracts worth Rs 255.75 crore were awarded to two builder firms on the basis of forged documents.

The audit report, tabled in both Houses of the Uttar Pradesh legislature on Thursday, covers the period from 2017 to 2022. It points to multiple irregularities in the allotment of industrial plots, land acquisition, evaluation of bid documents, execution of land development works, granting of unsecured loans to public sector undertakings and failure to avail income tax exemptions.

According to the report, in 2015 to 16, M s Balaji Builders was awarded 13 contracts worth Rs 143.22 crore for development of two selected construction blocks in industrial areas without verification of experience certificates. Subsequent verification found the certificates to be forged and the contracts were cancelled in 2017. Similarly, M s Akash Engineering and Builders was awarded two contracts worth Rs 112.53 crore without verification of experience certificates and fixed deposits. These contracts were cancelled in 2018 after the documents were found to be forged.

An FIR was lodged in the matter, but the report does not mention any action taken against the officials responsible for the lapses. Of the total recoverable amount of Rs 12.65 crore, only Rs 1.39 crore could be recovered.

The audit authority has recommended that accountability be fixed and action ensured against the officials responsible for such violations.