CAG finds ₹255.75 crore in fake bidder contracts awarded by UPSIDA

This performance audit examined the working of the Uttar Pradesh State Industrial Development Authority (UPSIDA) for the period 2017-18 to 2021-22 (updated up to March 2024). It assessed land acquisition, infrastructure development, plot allotment, and internal financial controls.

Uttar Pradesh State Industrial Development Authority (UPSIDA), Government of Uttar Pradesh

• Lapses in planning: Failure to prepare Perspective, Development, or Zonal plans since constitution.
• Land acquisition targets missed in 4 out of 6 years, with shortfalls ranging from 27.60% to 100%.
• Infrastructure targets missed in all 6 years, with shortfalls ranging from 24.67% to 92.70%.
• 15 contracts worth ₹255.75 crore awarded without verifying bidder documents; later cancelled due to suspected fake documents.
• 27 contract bonds (₹1.01 crore to ₹63.41 crore) awarded without assessing bidding capacity, causing delays.
• Short recovery of Liquidated Damages (LD) of ₹13.71 crore in 16 cases.
• Failure to recover quality test fees of ₹1.63 crore from contractors in 34 works.
• Avoidable expenditure of ₹7.67 crore on maintenance of areas under municipal bodies.
• Plot allotment targets missed (27-58% achievement) and recovery targets missed (47-96% achievement).
• Allotment of plots to ineligible applicants and excess land allotment (1,992 sqm to 10,542 sqm) due to lack of evaluation criteria.
• Short recovery of ₹58.98 lakh from e-auctions due to violation of Board-approved procedures.
• Permission for start of production granted before completion/occupancy certificates in 37 cases.
• Annual accounts not prepared for UPSIDA, UPSIDC, or Ex-LIDA, preventing legislative oversight.
• Unsecured loans of ₹52.84 crore granted to two state PSUs.
• Investment of ₹57.23 crore in fixed deposits in violation of guidelines.
• TDS refunds of ₹60.33 lakh not claimed timely.

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