CAG raps Yeida for ₹122cr loss in industrial plots’ allotment

The Comptroller and Auditor General (CAG) has criticised the Yamuna Expressway Industrial Development Authority (Yeida) in a report prepared this month for operational shortcomings and lack of transparency in the allotment of 2,428 industrial plots between 2009 and 2021.

The report revealed that no industrial operations had started on these plots as of April 2022. Also, no progress been made on plot registries, lease deeds, or development since April 2022.

The industrial plots, spanning 24.6 million square metres near Jewar, were expected to bolster industrial development, especially with the Noida International Airport slated to become operational by April 2025, officials said. However, the CAG report states that 81% of plot allottees have yet to execute the registry for their plots, leading to revenue losses. Only 453 plot owners completed the registry process, indicating enforcement lapses by Yeida, the report added.

According to the report, Yeida’s delays in lease deed execution and unresolved land encumbrances caused project delays of up to 12 years, resulting in ₹122 crore in lease rent losses. No new registry is being done.

Now, authorities will not allot industrial use plots above 8,000sqm area through e-auction. It will be done through ”objective criteria” that includes key components of interview in which a company director explains about their vision about the business and investment, said officials.

The report also highlighted revenue shortfalls due to inconsistent application of location charges for preferential plots near roads or green belts.

The CAG has criticised Yeida for allotting industrial plots larger than 2,000 square metres based on interviews instead of objective criteria. This process that gave the allotment committee discretionary power, lacked transparency and undermined the selection process’s integrity. Additionally, Yeida did not establish technical or financial eligibility requirements for applicants, raising concerns about the capability of allottees to execute large-scale projects, the report said.

“The ultimate objective of industrial development was defeated, as none of the allotted industrial plots saw project completion as of April 2022,” the report said, noting that the overdue amount against industrial plot allottees totalled ₹318 crore, representing 61% of the remaining allottees.

In response, Arun Vir Singh, CEO, Yeida, defended the agency’s actions, attributing delays to external factors such as legal disputes, farmers’ agitations over compensation, and regulatory bottlenecks. “The delays in issuing checklists, executing lease deeds, and infrastructure development were due to court cases. Farmers’ compensation disputes also created significant obstacles,” Singh said.

Singh added that penalties were not rigorously enforced because many projects faced genuine delays, and extensions of up to two years were granted to allottees. “Our decision to deviate from standard pricing practices, such as not levying location charges uniformly, was aimed at attracting investors during periods of economic uncertainty,” Singh said.

He further highlighted that Yeida has been working to resolve legal hurdles and develop the area as per rules and assured that future schemes would align with consistent policies to address the issues flagged in the report.