CAG flags Rs 29.45 crore unfruitful expenditure as 81 acres of Delhi’s Baprola land remain unused for 17 years

NEW DELHI: The Delhi State Industrial and Infrastructure Development Corporation (DSIIDC) left 81.42 acres of land in southwest Delhi’s Baprola unused for more than 17 years, resulting in unfruitful expenditure of Rs 29.45 crore, the Comptroller and Auditor General (CAG) has pointed out.The CAG report, tabled by Chief Minister Rekha Gupta in the Delhi Assembly on Friday, said DSIIDC had acquired leasehold rights over 137.63 acres from the Rural Development Department (RDD) in December 2006 for 99 years to develop a “Gems and Jewellery Park” and a “Fashion Design Hub”.

Plans changed repeatedly, leaving 59% of land unused

DSIIDC paid Rs 38.09 crore to the RDD in January 2007 towards the cost of the land and the first year’s ground rent. However, an audit covering April 2019 to March 2023 found that only 56.21 acres had been utilised, while 81.42 acres remained unused, around 59% of the allotted land, PTI cites.According to the CAG, the prolonged non-utilisation was largely due to repeated changes in the proposed use of the land. In 2010, after developers showed little interest in the original project, the proposed Gems and Jewellery Park and Fashion Design Hub were replaced with a Knowledge Based Industrial (KBI) Park.A consultant’s report in March 2012 found the KBI Park financially feasible, but the proposal remained at the planning stage until 2018. A fresh assessment in 2019, however, found the project unviable under prevailing market conditions.

KBI Park dropped, other proposals failed to take off

In August 2019, the Delhi industries minister decided to drop the KBI Park proposal and instead develop shop-cum-office spaces and factories at the site. The plan, however, was not implemented.The Delhi government’s 2022-23 Budget subsequently proposed an Electronics City on the available industrial land at Baprola. The CAG noted that there had been no further progress on the proposal till November 2024, as the Delhi Electronic System Design, Manufacturing and Refurbishment Policy 2024-29 was still awaiting approval.The audit concluded that the repeated changes in the intended use of the land and prolonged indecision resulted in 81.42 acres remaining unutilised despite expenditure of Rs 29.45 crore.

Rs 15.79 crore ground rent liability also flagged

The CAG also flagged that DSIIDC had failed to pay annual ground rent for the period from December 2007 to December 2024, resulting in an outstanding liability of Rs 15.79 crore.The liability could increase further due to applicable interest and penalties, the audit report said.