Bhubaneswar: The Comptroller and Auditor
General (CAG) has caught the Orissa government on the wrong
foot on land acquisition for industries and land management
"In case of both acquisition of private land and
leasing of government land, fixation of market rates tend to
benefit the buyer at the cost of land owners," the CAG said in
its recent report tabled in the Assembly.
Poor land owners in the state who are parting their
land for industrialisation are paid less for their land to
benefit industrial houses, CAG said adding that prompted by
media reports about irregularity in land acquisition in
Kalinga Nagar, Paradip and Puri districts it conducted
performance audit in selected places.
"Under assessment of compensation by Rs 63.98 crore
was noticed in 34 cases of acquisition of 3120.577 acre of
land for 11 industries due to erroneous fixation of market
value of land," it said.
In one district, the report pointed out that due to
such erroneous fixation of market value and additional payment
of ex-gratia to land owners, the state government was deprived
of charging establishment charge of Rs 8.19 crore from the
The state government had acquired land in six
districts where land were acquired for industrial houses like
Vedanta Resources, Jindal Steel & Power, Tata Steel, Utkal
Coal Ltd, GMR Energy, Bhusan Steel & Strips, BRG Iron & Steel,
Rungta Mines, Nilachal Ispat Nigam and Brand Alloys and
Eastern Steel & Power.