HYDERABAD: The Comptroller and Auditor General (CAG) has reported large-scale irregularities in the Telangana State Industrial Infrastructure Corporation Limited (TSIIC) — now called TGIIC. This includes diversion of about Rs 500 crore from the Industrial Area Local Authorities (IALAs), misuse of Rs 317.49 crore of HUDCO loan funds meant for NIMZ and Hyderabad Pharma City, and undue benefits to companies, including Adani Defence Systems and Technologies Limited (ADSTL). The CAG also noted that some land allotments lacked Cabinet approval.
The report for the period ending March 2022 was tabled in the Legislative Assembly on Monday.
The CAG found that 20 acres in Hardware Park, Mamidipally, were allotted to ADSTL at Rs 40 lakh per acre against the prevailing rate of Rs 2.13 crore per acre, extending an undue benefit of Rs 34.60 crore. This was done despite the Cabinet sub-committee advising relocation to the Aerospace Park at Kongara Kalan. The CAG stated that the Industries department “violated the CSC’s decision” by allowing the project to remain at Mamidipally at concessional rates.
It also flagged land allotments made by authorities without competence. Even after expiry of the Electronic Hardware Policy (2012–2017), land was allotted under an unauthenticated “Electronics Policy 2016”, causing a loss of Rs 208.24 crore.
‘No policy backing for land allotments’
Between March 2018 and March 2022, the Consultative Committee on Electronic System Design and Manufacturing allotted 165.21 acres to 39 units at Rs 60 lakh to Rs 90 lakh per acre against prevailing rates of Rs 1.58 crore to Rs 2.14 crore per acre, without policy backing.
In another case, 511 acres were allotted to Vem Technologies Private Limited in NIMZ, Zaheerabad, though the assessed requirement was 49 acres, resulting in an undue benefit of Rs 106.91 crore.
The CAG noted that 45.61 acres were restored to JCK Infra Projects Limited after more than 20 years on payment of Rs 1.51 crore against Rs 54.91 crore due under the regulations, extending an undue benefit of Rs 53.4 crore.
It also flagged the allotment of land to an Amazon data centre in Hyderabad Pharma City, stating that the allotment deviated from the project’s intended purpose.
Further, infrastructure was provided to Chiripal Poly Films Limited at Plastic Park, Mankhal, at TSIIC’s cost, contrary to Cabinet sub-committee decisions, extending an undue benefit of Rs 32.55 crore.
On fund diversion, the CAG found that TSIIC diverted about Rs 500 crore from IALA funds meant for local body remittances and industrial area maintenance. This included Rs 150 crore for Pharma City land acquisition (September 2015–March 2016), Rs 100 crore for IT infrastructure projects such as T-Hub (Phase II), T-Works and IT Towers in Karimnagar, Nizamabad, Khammam, Warangal and Mahbubnagar (December 2019–October 2020), and Rs 250 crore for development activities (April–November 2021).
Of the Rs 725 crore HUDCO loan taken for NIMZ, Zaheerabad, and Pharma City, Rs 317.49 crore was diverted. This included Rs 182 crore for other industrial parks, Rs 57.24 crore for the E-city project, Rs 62.91 crore for loan repayment and Rs 15.34 crore for operational expenses, in violation of the loan agreement.