CAG raps MHADA Nagpur Board over failure to hand over units to beneficiaries
| Date :08-Jul-2019 |
Staff Reporter:
The Board had not even applied for the Occupancy Certificates in respect of 29 HIG bungalows at Waddhamana, CAG observed
Even as the State Government has been emphasising on faster and better delivery of service to the citizens, several agencies and authorities continue to work in their own ways. In a latest instance, Comptroller and Auditor General (CAG) has rapped Nagpur Housing and Area Development Board under Maharashtra Housing and Area Development Authority (MHADA) over its failure in handing over tenements to over 300 beneficiaries despite them paying the sale price three to four years ago. In its latest report on audit of General and Social Sectors tabled before the State Legislature earlier this week, CAG has pointed out that as Nagpur Board of MHADA did not obtain the Occupancy Certificate from Nagpur Municipal Corporation (NMC), beneficiaries of two housing Schemes at Nagpur were deprived of their homes even after three to four years since payment of sale price of Rs 124.20 crore to the Board. Surprisingly, though CAG referred the matter to the Government as per procedural requirement while preparing the audit report in July 2018, the Government reply was awaited as of March 2019.
MHADA is mandated to provide housing in Maharashtra by constructing tenements for families under Economically Weaker Section (EWS), Low Income Group (LIG), Middle Income Group (MIG), and Higher Income Group (HIG) categories. Its unit -- Nagpur Housing and Area Development Board -- took up two housing scheme namely construction of 320 HIG tenements at Empress Mills in Nagpur at the cost of Rs 56.08 crore in December 2010, and construction of 29 HIG bungalows at Waddhamana at the cost of Rs 3.91 crore in March 2013. Construction of both the schemes was physically completed in October 2016 and September 2016 respectively.
Nagpur Board collected sale price of Rs 118.33 crore (full payment made by 199 beneficiaries and part payments by 115 beneficiaries) from beneficiaries of 314 HIG tenements at Empress Mills upto March 2014. Similarly, the Board collected Rs 5.87 crore (from 27 beneficiaries in 2013-14 and from two beneficiaries in 2014-15) as sale price for 29 HIG bungalows at Waddhamana upto March 2015. However, CAG has observed in its report after scrutiny of documents, possession of these tenements was not handed over to the beneficiaries even after three to four years. For, Occupancy Certificates for the tenements of both the schemes had not been obtained from NMC.
In fact, the Board had not even applied for the Occupancy Certificates in respect of 29 HIG bungalows at Waddhamana since infrastructure works such as internal roads, retaining wall and drainage works were ‘still incomplete’. “The Board had not taken any action to expedite the works except penalising the contractor,” CAG has remarked. In respect of the scheme at Empress Mills, though Nagpur Board of MHADA applied for Occupancy Certificate in March 2014, NMC had not issued the same for want of environmental clearance since total built up area of the project was more than 2,000 sq mtrs. The clearance was finally obtained in April 2017 from State Level Environment Impact Assessment Authority under the provisions of Environment Impact Assessment Notification-2006 subject to condition of installation of Sewage Treatment Plant (STP). However, CAG’s scrutiny revealed, the Board had not taken any action for installation of the STP till December 2018.
In response to CAG’s observations, Executive Engineer-I, Nagpur Division-I, Nagpur Housing and Area Development Board, stated in February 2018 that the requirement of environmental clearance was initially not applicable to the project at Empress Mills. But, it became necessary subsequently due to a clarification to the Notification issued in April 2011, whereby the condition of STP was put while issuing clearance in April 2017. In respect of Waddhamana project, the officer stated, the Occupancy Certificate will be obtained shortly. However, CAG has dubbed the response regarding Empress Mills scheme as ‘tenable’. For, the CAG report mentions, NMC denied the Occupancy Certificate pending environmental clearance required as per Notification of September 2006. And, Nagpur Board was ‘silent’ regarding action proposed for installation of STP.