Probe HSIIDC ex-MD’s decisions: Haryana House panel
Bhartesh Singh Thakur
Chandigarh, February 28
The Vidhan Sabha Committee on Public Undertakings has recommended a Vigilance inquiry into all decisions taken during the tenure of a former Managing Director of the Haryana State Industrial and Infrastructure Development Corporation (HSIIDC).
CAG observation
The Comptroller and Auditor General (CAG) concluded that granting extension beyond request for proposal (RFP) norms and non-levying of material extension fee were tantamount to granting undue favour of over Rs 57.77 crore to the allottee
The recommendation comes following the Comptroller and Auditor General of India (CAG) observation that an “undue” favour of Rs 57.77 crore was allowed to an allottee in Sector 16, Gurugram. The report of the committee was tabled in the state Assembly today. The HSIIDC allotted a 12.2-acre commercial plot in Sector 16 of Gurugram to an allottee for Rs 587.56 crore through an auction against a request for proposal (RFP) on June 11, 2010. As the allottee failed to complete construction on the plot within the prescribed five-year period, an extension up to June 10, 2017, was granted to the allottee on the payment of extension fee, as per RFP terms and conditions. As the construction was not completed even during the extended period, the plot was liable to be legally resumed. In January 2018, the allottee submitted a representation against the resumption notice claiming that the project had been pre-certified by the Green Rating for Integrated Habitat Assessment (GRIHA) and more than 90 per cent of the building construction had been completed. The allottee sought a further extension of two years.
In March 2018, the then HSIIDC MD granted two-year extension (up to June 10, 2019) for the project, citing the adoption of GRIHA norms and the payment of applicable extension fee.
CAG observed that the extension was irregular as it was beyond the provisions of Estate Management Procedure (EMP). Moreover, the GRIHA certification was optional and the allottee’s claims of the completion of more than 90 per cent construction was not on record.
Upon the expiry of the extension period on June 10, 2019, the allottee again requested for the extension, which was granted by the Board of Directors (BoD) of the HSIIDC up to June 2022.
The CAG concluded that granting extension beyond RFP and non-levying of material extension fee were tantamount to granting undue favour of over Rs 57.77 crore to the allottee.
During the hearing before the committee, the HSIIDC said the extension was granted by the then MD considering the circumstances of the case and in the overall interest of development. However, it added that the BoD was competent to decide any matter not covered under EMP norms. Expressing dissatisfaction, the committee observed that the then MD “was not competent to deal with such issues” and that such powers vested with the BoD of the HSIIDC. The panel observed that previous cases were also dealt with in the same manner. “Therefore, the committee recommends to initiate a Vigilance inquiry into all decisions taken during the tenure of the then MD of the HSIIDC,” said the report.
