Audits Comptroller & Auditor General
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).
₹255.75 croreCAG found that UPSIDA awarded 15 contracts totaling ₹255.75 crore without verifying bidder documents, which were la…
It assessed land acquisition, infrastructure development, plot allotment, and internal financial controls.
Who it concerns: Uttar Pradesh State Industrial Development Authority (UPSIDA), Government of Uttar Pradesh
What the auditor found
- 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.
Also in the document
- CAG found that UPSIDA awarded 15 contracts totaling ₹255.75 crore without verifying bidder documents, which were later suspected to be fake and cancelled.
- CAG noted that UPSIDA incurred avoidable expenditure of ₹7.67 crore on maintaining industrial areas that fall under the jurisdiction of municipal bodies.
- CAG reported that annual accounts for UPSIDA, UPSIDC, and Ex-LIDA were not prepared, meaning they were not laid before the Legislature.
- CAG found that UPSIDA granted unsecured loans of ₹52.84 crore to two state Public Sector Undertakings.
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The original document
Comptroller & Auditor General of India (CAG) — audit reports
Audit report · Ref. Report No. 14 of 2025 · 2025
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