New Delhi :- Report of the Comptroller and Auditor General of India Performance Audit on Role of Maharashtra Industrial Development Corporation (MIDC) in the industrial development of Maharashtra Report No. 05 of the year 2023
Government of Maharashtra (GoM) established (August 1962) Maharashtra Industrial Development Corporation (MIDC) under Section 3 of Maharashtra Industrial Development Act, 1961 (MID Act) to promote and assist in the rapid and orderly establishment, growth and development of industries in the State of Maharashtra. MIDC is under the administrative control of Industries,, Energy and Labour Department of the GoM.
The Performance Audit (PA) was conducted to cover the aspects of MIDC related to corporate governance, planning, development of industrial areas (IAs), land acquisition, pricing and allotment. recovery of charges and monitoring system for development and utilisation of plots during the period 2014-15 to 2020-21.
Audit observed that during the period 2014-21, GoM did not appoint seven out of 15 members to the Board of MIDC.
The Board of MIDC took important decisions having financial implications overriding the extant rules/policy in cases of land allotment, levy of lease premium/transfer charges/extension charges and sub-letting charges.
MIDC did not formulate any programme/plan for achievement of targets set in the State Industrial Policy (SIP). MIDC also did not have a perspective plan for land acquisition, development and allotment activities in IAs detailing physical targets to be achieved. Land acquisition and industrial development activities of MIDC, thus, did not emerge out of a systematic and comprehensive plan.
MIDC allotted land to prospective entrepreneurs considering. inter alia, proposed investment and employment generation mentioned in the Detailed Project Reports (DPR). There was, however, no database/system to ascertain/record allottee wise details regarding actual employment generated and investment made by an allottee vis-a-vis the DPR. MIDC, thus, confined its role to development/allotment of land in IAs and outcome based approach to industrial development (investment and employment generation) was lacking.
MIDC had not formulated any action plan/system for acquisition of surplus/ unutilised land with the allottees. for allotment to new entrepreneurs as envisaged in Section 42A of the MID Act.
Four policies implemented by MIDC for development/disposal of plots in IAs (allotment rate, grant of possession of plot, mixed land use on industrial plot and recovery of arrears as land revenue) contravened express provisions of the MID Act, MIDC Disposal of Land Regulations. 1975 (DLR) and Development
Control Regulations (DCR), 2009.
MIDC did not ensure timely finalisation of tenders within the validity period as per delegation of powers which resulted in cancellation of tenders and re- tendering at extra cost.
Policy of fixation / revision of land rates was not appropriate. Systemic delays in implementation of revised land rates were observed.
Instances of undue concession to allottees in recovery of revenue from lease premium, transfer charges. Urban Land Ceiling (ULC) Exemption transfer charges, extension charges and sub-letting charges were observed. Irregular grant of instalments for payment of lease premium and non-forfeiture/refund of lease premium in violation of regulations/policy were also observed.
Lack of system for periodic revision of water charges and service charges from the allottees was observed which led to short recovery of expenses.
MIDC had not levied and recovered Goods and Services Tax on non-exempted services from the plot holders leading to non-payment of statutory dues.
There was absence of an effective system to monitor cases of non-development of plots/obtaining Building Completion Certificate (BCC) within the stipulated time limit. MIDC also did not initiate prompt action for resumption of plots and timely issue of notices for recovery of extension charges.
Instances of change in use of allotted plots. lack of system for monitoring. removal of encroachments and irregular allotment of land to encroachers was observed.
