CAG flags KIADB over ₹31.90 crore undue benefit to Toyota unit in Anekal
The CAG has faulted KIADB for forgoing ₹31.90 crore in compensation and service charges from Toyota Industries Engine India at Jigani and Bukkasagara.
The Comptroller and Auditor-General of India has faulted the Karnataka Industrial Areas Development Board for extending an undue benefit of ₹31.90 crore to Toyota Industries Engine India Pvt. Ltd. at Jigani and Bukkasagara in Anekal taluk of Bengaluru Urban district.
In its report for the year ended March 2024, tabled in the Legislative Assembly on Monday, the CAG said the board had violated a government order while recovering compensation for land used for a road and while reducing the rate of service charges, resulting in the undue benefit to the company.
The audit found that KIADB neither levied nor collected ₹24.17 crore as compensation for 9,761 sq. metres of land used for a road. It also did not collect service charges of ₹2.90 crore on that land.
Separately, the board lowered the service charge rate from 12% to 6% at the company's request, in violation of a February 2021 government order. That reduction delivered a further undue benefit of ₹4.83 crore.
In another observation, the CAG flagged wasteful expenditure of ₹1.55 crore on a proposed Regional Science Centre in Mysuru. The Electronics, IT and BT Department had proposed the project at a cost of ₹14.50 crore on seven acres within the University of Mysore campus near Kukkarahalli Lake.
Work was halted in 2016 after the proposed construction site was found to be on a lakebed, rendering the expenditure incurred on the project wasteful.