Lavasa built at cost of public interest: CAG

The report says the state government’s policy decision in November 1996 to develop hill-station townships,in partnership with private players,was not given publicity,nor did the government call for expressions of interest. As a result,only one project — Lavasa,sanctioned in June 2001 — has been developed through the policy even a decade after it was drafted.

“The state government at the highest level and its agencies at executive implementation level went out of its way to facilitate a single project.”

It has also recommended reviewing the policy of granting Special Planning Authority status to private agencies such as LCL. Calling this a “dilution of the government’s role” and an “undue favour”,the report says LCL sought the special status at a meeting in January 2007 attended by the chief minister,the then Union Minister for Agriculture,state Minister for Irrigation and officials of LCL and the state government.

Meanwhile,in a statement,LCL said all land transactions and tax exemptions were carried out as per government policy. “Lavasa has directly purchased over 10,000 acres of land through private negotiations at the prevailing market prices,over the last eight years. The land transactions have been conducted within the relevant regulatory framework.”

CAG’s objections

The government did not conduct any expert study or survey to identify areas where private hill stations would be developed

LCL was picked on a first-come-first-served basis without any call for tenders

The government declared the area of 18 villages proposed to be developed by LCL as suitable for a hill station although the land was earlier reserved for afforestation

The project area was increased by removing the 2,000-hectare cap originally proposed in the 1996 government policy

Despite the ecological and socio-economic impact of such projects,sanctions were accorded without studying these issues

Concessions and exemptions from paying stamp duty and

registration fees appear unwarranted and unjustified. LCL availed stamp duty exemptions to the tune of Rs 4.31 crore.

Entertainment duty on water sports and entertainment activities not levied.