Bhubaneswar, April 6: The state government’s land distribution policy here has drawn flak from the Comptroller and Auditor General (CAG).

The CAG report, which was tabled in the Assembly on the concluding day of the budget session today, states that no definite policy has been followed while distributing land to individuals, causing a loss of Rs 300 crore to the state’s exchequer.

Besides, had the state followed the auction method, it would have earned more money, the CAG report stated.

Market sources revealed that the state would have earned nearly Rs 1,600 crore had it taken the auction route.

According to the CAG’s observation, the government distributed nearly 464 acres of land during the past one decade without following any rules and procedure.

The general administration has been entrusted with the management of land under the Bhubaneswar Municipal Corporation area since 1952. The CAG also stated that the department was yet to frame rules, regulations or manual for allotment of land.

Incidentally, the department functions under the chief minister.

According to the CAG’s revelations, the department allotted 464.479 acres in 337 cases during 2000-12 to individuals, government offices, government undertakings as well as private bodies for establishment of hotels, hospitals, educational institutions and non-government organisations. Of this, 183.449 acres (39 per cent) were allotted to non-government institutions and organisations.

While making a surprise check of 164 out of 337 cases, the CAG noticed that the process of land allotment lacked a defined policy and procedure.

“Absence of any rule or criteria to govern the allotment process gave room for arbitrariness in allotment. There was no uniformity in disposal of applications, sanctions of concessions on premium to be paid, changes in land use plan and resumption of encroached land,” said the CAG in its report.

Of the 164 cases checked, 63 cases pertained to those other than government parties. In 16 of the 63 cases, land pleas were disposed of in a year, but in the remaining 47 cases, delays ranged from one year to 24 years.

“Proclamation inviting public objections as stipulated in the Odisha Government Land Settlement Rules was not published in any of the test checked cases,” said the CAG, adding that in many instances recommendation of the respective departments was also not obtained.

The CAG further said that despite continuous rise of land price in Bhubaneswar, non-revision of premium and non-consideration of the prevailing market value of the land of the respective areas resulted in a loss of Rs 251.92 crores to the government during 1998-2009.

Besides, there was loss of around Rs 20 crore to the government as conversion fee was charged at a reduced rate. Though 11.87 acres of land valued at Rs 84.21 crore was under the occupation of encroachers as of March 2012, no effective steps for eviction had been taken.

The CAG also said as the department did not apply auction method in case of allotment of 154.473 acres, though the prevailing market rate was 4.78 times more than the benchmark value, thereby foregoing the opportunity of earning substantial revenue.

Market sources said if the government had followed the auction method, it would have earned nearly Rs 1,600 crore on an average of Rs 10 crore per acre under the corporation area.

The CAG report stated that to ensure effective land management, it was important to have a complete, accurate, reliable and updated database in respect of actual availability of government land.

“It was noticed that though the general administration department maintained a website-based land management information system, I did not reveal vital information,” the CAG observed.