GNIDA suffered Rs 19.5k cr revenue losses till 2017-18 due to lapses: CAG
Tired of too many ads? go ad free now
The report of the Comptroller and Auditor General of India on land acquisition and allotment of properties in GNIDA was tabled in Vidhan Sabha on Wednesday. The report has brought forth some serious lapses on the part of GNIDA leading to heavy losses to the authority.
The report covers land acquisition and allotment of properties in GNIDA between 2005-06 and 2017-18.
According to the report, total revenue loss of Rs 13,362 crore has been detected due to short recoveries, undue benefits to allottees and irregular and additional/avoidable expenditure in the test-checked cases.
One of the most glaring remarks made by CAG is that GNIDA focused on developing Greater Noida township as a residential township instead of developing it as an industrial facility as required under the UPIAD Act, 1976.
The CAG report pointed out that land acquisition, development and allotments from 2005-06 till Oct 2011 were done under Master Plan 2021, which was not approved by National Capital Region Planning Board (NCRPB), which was a must in view of apex court and high court orders in this regard.
Till 2014-15, GNIDA did not incorporate the condition of developing 20-25% EWS and LIG housing stocks in the scheme brochures of builders/group housing plots.
As on Sep 2019, even after 28 years of the formation of GNIDA, the development of industrial land was only 67.47% of the area planned for industrial activities, whereas development of residential land was 104.04% of the residential area planned, the report said.
Tired of too many ads? go ad free now
Out of 2,580 industrial plots allotted by GNIDA from Jan 1991 to March 2021, industrial units on only 1,341 plots (52%) were made functional. GNIDA also failed in cancelling projects which were not made functional beyond stipulated time which gave undue favour to the allottees and encouraged profiteering in transfer of land through change in constitution of allottees, the report said. As on April 2021, 972 defaulting allottees of industrial plots owed Rs 630.56 crore towards land premium, lease rent and interest.
No approvals were taken before changing land use, the report said. CAG noticed failure in due diligence on the part of GNIDA leading to frequent revisions in acquisition proposals and avoidable expenditure on account of delays, avoidable payment of additional compensation to cases of direct purchases and purchase of land at higher rate resulting in additional payouts to the extent of Rs 527.84 crore.
The report noted that GNIDA allowed excess floor area ratio (FAR) and ground coverage (GC) over and above building regulations causing undue enrichment of allottees overlooking its own interest.
The combined effect of inadequate consideration of essential inputs in a uniform manner and not considering FAR and GC in fixation of sale price deprived GNIDA of revenue worth Rs 6411.29 crore between 2007-08 and 2016-17.
Out of the total of 186 (183 builders, 3 group housing), only 27 builders/group housing allottees could complete projects as against completion of 148 projects as on April 2021. GNIDA failed to recover dues from builders even after a lapse of tenure of payment leading to pending receipt of Rs 10,732.44 crore as on April 2021.
At least seven plots valuing Rs 635.47 crore were allotted to five builders despite the fact that they had defaulted on already allotted plots. These builders further defaulted on subsequent allotments taking the accumulated loss to Rs 877.03 crore till April 2021. The outstanding amount on their earlier allotments had accumulated to Rs 461.99 crore.
Similarly, out of 335 commercial plots (23,33,952 sq m area) and 428 built-up/kiosks (13.178 sq m ) allotted by GNIDA since inception till April 2021, construction was completed only on 28 plots (9%).
Out of 428 built-up/kiosks allotted, only 289 were made functional due to lack of monitoring by GNIDA.
The CAG pointed out that the internal control system in GNIDA was significantly weak. The UP govt and GNIDA failed to perform oversight roles.
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Hans India
29 minutes ago
- Hans India
Assam govt to spend Rs 325 crore for cashless medical treatment of needy citizens
Guwahati: Assam Chief Minister Himanta Biswa Sarma on Thursday said that the state government is set to spend at least Rs 325 crore for the cashless medical treatment of needy citizens, and the cabinet has cleared the decision. The initiative, Mukhya Mantri Ayushman Asom Yojana, will get the additional funding of Rs 325 crore for the current fiscal year, and the cabinet has given the nod on Wednesday night under the chairmanship of CM Sarma. Meanwhile, on the power front, the Cabinet gave post-facto approval for the procurement of 500 MW of electricity from the Ministry of Coal at Rs 5.79 per unit, a move aimed at ensuring affordable and reliable electricity for consumers. In a boost to renewable energy goals, the government also sanctioned a 1,500 MW Pumped Storage Project in Karbi Anglong, which is expected to significantly contribute to Assam's clean energy capacity. In a bid to enhance the state's industrial climate and streamline construction norms, the Cabinet approved amendments to the Assam Unified Building Construction (Regulation) Byelaws, 2022. The changes are intended to promote the ease of doing business, encourage the development of green buildings, and enable smaller plots to benefit from the Transit-Oriented Development (TOD) Policy. The amendments also aim to facilitate affordable housing projects for the Economically Weaker Section (EWS). As part of the Mission Basundhara 3.0 initiative, the Cabinet also approved the reclassification of land in eight proposals in Dhubri and Biswanath districts. This reclassification will regulate land use changes and transfers for non-agricultural purposes, streamlining the process for development while ensuring compliance with state regulations. Chief Minister Sarma described the decisions as steps towards "ensuring quality healthcare for all, securing reliable power supply, and enabling faster industrial growth".
Hans India
29 minutes ago
- Hans India
Black Box reports 28 pc YoY growth in PAT for Q1 FY26
Mumbai: Black Box Limited, a leading provider of digital infrastructure solutions, announced its unaudited financial results for the quarter ended June 30, 2025. The Company delivered a resilient performance with year-over-year improvement in both operating profit and net profitability, despite the ongoing global tariff uncertainty that impacted project execution timelines. Building on the strong operational foundation laid in FY25, when the Company completed its multi-year turnaround and achieved significant margin expansion, Q1 FY26 reflected continued discipline in execution, robust profitability, and an expanding order book. Revenue for Q1 FY26 stood at Rs 1,387 crore compared to Rs 1,423 crore in Q1 FY25. The delay in equipment procurement by certain clients, because of the prevailing tariff environment, resulted in deference of the service execution and revenue recognition. EBITDA for the quarter was Rs 116 crore, representing a 1 per cent year-on-year growth. EBITDA margins improved by 30 basis points to 8.4 per ent in Q1 FY26 year-on-year, despite lower fixed cost absorption on account of a decrease in revenues. Profit after tax (PAT) rose 28 per cent year-on-year to Rs 47 crore from Rs 37 crore in Q1 FY25. PAT margins improved 80 basis points, driven by a reduction in exceptional items and lower taxes. Business and Operations highlights Order momentum remained strong, with the backlog at the end of Q1 FY26 at Rs 4,433 crore ($518 million), up from Rs 4,313 crore ($504 million) at the close of FY25. Order bookings during the quarter were robust at Rs 1,506 crore ($176 million), marking a strong start towards the company's focus on revenue growth. Nearly two-thirds of all the deals won in Q1 FY26 were high-value engagements, demonstrating the success of the ongoing transformation and the company's strategic focus on large-scale projects with global marquee clients. The Company also continued to streamline its customer portfolio by reducing the long tail of low-value accounts, bringing the total to below 1,000 from around 1,500 last year. The Company continues to leverage its global presence and local expertise to win large-scale, high-value projects across geographies. Notable order wins during the quarter included a very large project in the United States from a leading financial services giant, as well as a workplace solutions engagement from one of the world's largest OTT players for their operations in Latin America. The Company also secured two significant data center orders in the United States, one from a global hyperscaler and another from a top-ten global co-location provider. Other key wins included a workplace solutions project in the United States from a top-tier city transport authority, a combined connectivity infrastructure and networking order from a prominent public services organization, and a large networking deal from a reputed 200-year-old research university in the United States. Commenting on the results, Sanjeev Verma, Whole Time Director, said, "Over the past five years, we have transformed Black Box from a loss-making entity into a profitable, cash-generating business with a strong balance sheet. With the turnaround complete, FY26 is about accelerating growth, scaling revenues, and capturing market leadership. While the year began at a slower pace, we are seeing solid traction in key accounts and are actively engaged in multiple high-value opportunities. Supported by our differentiated capabilities, robust pipeline, and committed teams, we remain confident in delivering sustainable, long-term growth." Deepak Kumar Bansal, Executive Director and Global CFO, added, 'While Q1 is typically softer than Q4, this quarter's performance also reflected some client-driven delays in equipment procurement due to the prevailing tariff environment, which impacted the timing of revenue recognition and operating margins. Despite this, we achieved year-on-year growth in both EBITDA and PAT, demonstrating our operational efficiency and margin resilience. With a robust order book, healthy cash reserves, and a strengthened go-to-market strategy, we remain confident to deliver on our growth ambitions for the remainder of the fiscal year.'
Economic Times
29 minutes ago
- Economic Times
JSW Cement shares fall over 5% post market debut. What should investors do?
Shares of JSW Cement stumbled on their first day of trading Thursday, sliding more than 5% from their opening price and erasing early gains that had topped grey-market expectations, in a muted debut for the Rs 3,600-crore offering. ADVERTISEMENT The stock listed at Rs 153 on the BSE, 4.1% above its IPO price of Rs 147, and at Rs 153.50 on the NSE, a 4.4% premium. But momentum quickly faded, with shares dropping to an intraday low of Rs 145.05 on both exchanges, down 5.2% and 5.5% respectively from their opening levels. The performance nonetheless beat the grey market premium of Rs 151 seen ahead of listing, which had implied a gain of around 3%. JSW Cement's book-built IPO, which ran from August 7 to 11, drew 7.77 times subscription overall, fuelled largely by institutional demand. Qualified institutional buyers bid 15.80 times their quota, non-institutional investors 10.97 times, and retail investors 1.81 times. The allotments were finalised on August 12. The issue comprised a Rs 1,600-crore fresh sale of 10.88 crore shares and an Rs 2,000-crore offer for sale of 13.61 crore shares by promoters. Ahead of the launch, the company raised Rs 1,080 crore from anchor investors, including marquee domestic and global institutions. Shivani Nyati, Head of Wealth at Swastika Investmart, said JSW Cement's debut at Rs 153.50 amounted to a flat listing. Nyati noted the company is among India's top 10 cement makers and is expanding aggressively through new and existing projects to double grinding capacity. However, revenue and profit growth have been uneven in the past three years, and high valuations combined with current losses could trigger short-term volatility. ADVERTISEMENT "Being in a growth phase, the company's high valuation and current losses could lead to short-term volatility in returns," said Nyati. Unlock 500+ Stock Recos on App Nyati advised IPO investors seeking listing gains to keep a stop loss at Rs 138, while medium-term to long-term investors could hold the stock for its growth potential. ADVERTISEMENT 'JSW Cement's Rs 3,600-crore IPO wrapped up its third and final day of bidding with full subscription, reflecting strong investor interest despite a softening in grey market premiums to around 3–4% ahead of listing,' said Gaurav Garg of Lemonn Markets Desk.'We advise subscribing only with a long-term view, citing rich valuations and near-term earnings pressure, but highlighting the company's strong growth potential in India's infrastructure expansion.' ADVERTISEMENT Brokerages had broadly advised long-term positions. Canara Bank Securities described JSW Cement as India's fastest-growing and the world's 'greenest' cement producer. While flagging its higher-than-peer valuations—32x EV/EBITDA versus the 23x industry average—it backed the IPO on long-term growth, sustainability credentials, and JSW Group Capital Research cited leadership in Ground Granulated Blast Furnace Slag (GGBS) production, brand strength, and operational synergies. ADVERTISEMENT SBI Securities had pointed to plans to more than double capacity to 60 million tonnes per annum by the mid-2030s, adding that profitability, hit by one-off losses, should improve through cost optimisation and new projects such as Shiva Cement's grinding unit in Cement, part of the JSW Group, is a leading green cement maker with seven plants across India and an installed grinding capacity of 20.6 million tonnes a year. Its portfolio spans blended and ordinary Portland cement, GGBS, clinker, and allied products, supported by a network of over 4,600 dealers, 8,900 sub-dealers, and 158 from the fresh issue will help fund a new integrated cement unit at Nagaur, Rajasthan, repay borrowings, and meet general corporate needs. The offer for sale proceeds will go to existing profitability in FY23 and FY24, the company posted a loss in FY25, a factor analysts say could weigh on near-term sentiment as investors watch whether JSW Cement can deliver beyond its first trading day. (Disclaimer: Recommendations, suggestions, views and opinions given by the experts are their own. These do not represent the views of The Economic Times) (You can now subscribe to our ETMarkets WhatsApp channel)
