Ministry of Defence loses Rs 829 crore due to delay in reneweal of land leases: CAG

NEW DELHI: The Ministry of Defence has suffered a loss of Rs 829.71 crore due to inordinate delay in the renewal of leases by Defence Estate Officers with organisations occupying defence land despite clear instructions from the ministry, a CAG report said today.

The ministry incurred the losses in six patches of its lands across the country which are under the possession of different organisations, said the Comptroller and Auditor General's report which was tabled in Parliament.

A whopping loss of Rs 814 crore was caused by delay in fianalising lease in one particular case alone involving Royal Calcutta Turf Club which is spread over 153.4 acres of defence land.

"To avoid undue delays in renewal of leases, the DEOs are required to initiate action at least one year before the expiry of the lease... However, despite clear instruction of the MoD, we noticed undue delay in renewal of lease in six cases resulting in non-realisation of Rs 829.71 cr," it said.

The audit, which covers 2011-12, said serious lapses and irregularities were also pointed out by the Public Accounts Committee as it examined an earlier CAG report but no effort was made by the MoD to streamline the same.

"The ex-lessees continued to occupy prime defence land unuthorisedly even after expiry of leases. The DEOs had also failed to take advance action for renewal or termination of leases in disregard of the guidelines...

"Further, cases of encroachment by other department and misuse of defence land by the local military authorities for unauthorised purposes such as running of hostels and shopping complexes constructed from non-public funds continued unabated," it said.

The CAG report has made these observations in a chapter devoted to improper management of defence land.