RLDA earns ₹332.79 crore, 94.17% below ₹3,281.32 crore target

This audit examined the compliance of rules and regulations regarding the development of Multi-Functional Complexes (MFCs) and commercial sites by the Rail Land Development Authority (RLDA) under the Ministry of Railways for the period from April 2018 to March 2023.

Who it concerns: Rail Land Development Authority (RLDA), Ministry of Railways, Union Government

What the auditor found

• Shortfall of 94.17% in earnings against the Five-Year Plan 2017-22 targets due to non-entrustment of sites, cancellations, and litigation.
• RLDA did not prepare a Five-Year Plan for the period 2022-27.
• Against expected earnings of ₹3,281.32 crore for 16 selected commercial sites, RLDA earned only ₹332.79 crore.
• Short transfer of earnings amounting to ₹233.44 crore to the Ministry of Railways (transferred ₹1,583.91 crore instead of ₹1,817.35 crore).
• Excess retention of margin money by RLDA amounting to ₹3.92 crore (retained ₹324.63 crore instead of ₹320.71 crore).
• 69% of commercial site proposals (129 sites) remained pending for entrustment at the Ministry of Railways as of March 2023 due to lack of prescribed timelines and missing certificates.
• 15 out of 26 sampled sites had land-related issues such as encroachments, encumbrances, or unclear titles identified after entrustment, leading to non-monetisation.
• Eight out of ten empanelled Financial and Management (F&M) consultants participated in less than 33% of Request for Proposals (RFPs), with no action taken by RLDA despite poor participation.
• None of the commercial sites sampled had been developed by March 2023, and only 14 out of 53 awarded MFC projects were completed.

Also in the document

• CAG reported that despite owning 62,740.44 hectares of vacant land, only 997.83 hectares (1.59% of vacant land) was entrusted to RLDA for development.
• CAG noted a systemic failure where Zonal Railways, RLDA, and the Ministry of Railways failed to ensure clear land titles before entrustment, resulting in 15 out of 26 sampled sites having unresolved land issues.
• CAG found that RLDA earned only ₹332.79 crore against a target of ₹3,281.32 crore for selected commercial sites, indicating a significant gap between planned and actual revenue generation.