Overview
- Tabled on February 20, the audit covers 2017–18 to 2021–22 with updates to March 2024 and documents systemic failures in governance, procurement and plot allotments at UPSIDA.
- The report details two builder cases: Balaji Builders (13 contracts worth Rs 143.22 crore) and Akash Engineering and Builders (two contracts worth Rs 112.53 crore) received awards later canceled after forged documents were detected, with an FIR lodged and Rs 1.39 crore recovered of Rs 12.65 crore due.
- Auditors found 27 contract bonds were issued without assessing bidding capacity, leading to severe delays, including completed works slipping 61–2,612 days and others still unfinished after 648–2,678 days.
- Land was allotted to ineligible applicants without robust financial vetting, including cases in Kosi Kotwan where applicants with annual incomes of Rs 6–7 lakh proposed projects of over Rs 40 crore and another case granted time extension despite a net worth of Rs 1.04 lakh for a Rs 300 crore plan.
- Internal controls were weak, with lenient liquidated damages capped at 1% versus 10% under UPPWD norms, questionable loan decisions including borrowings of Rs 41 crore from the state and Rs 450 crore from Noida, and unsecured loans of Rs 52.84 crore; UPSIDA accepted the findings as the state cited FIRs, rescinded contracts and ongoing recoveries.