KHB loses over 7 crore for faulty calculation of floor area
The Karnataka Housing Board (KHB) incurred a loss of more than Rs. 7.2 crore for wrongly measuring the floor area of buildings it rented out in a prime location in Bangalore.
Before renting out any property owned by state-owned boards and corporations, it is crucial to correctly measure the floor area of the property and include the same in the agreement.
But the KHB failed to follow this practice while renting out its buildings in the Combined Board Administrative Building Complex in Bangalore to 18 organisations including banks, Indian Airlines, State and Central government departments and private organisations. It kept renewing the agreements periodically without correcting this mistake till October 2009.
Later when Comptroller and Auditor General of India (CAG) revealed that the KHB neither checked with the approved plan of the building nor measured the premises, the board measured the premises and grasped that except in the case of five organisations, the floor areas incorporated in the agreement with other occupants was far lower than the actual floor area.
KHB sent notices to all the occupants demanding higher rent retrospectively from October 2009 of which only one organisation paid higher rent.
To read more real estate news:
Karnataka Housing Board’s Outskirt Property Areas Valued Rs.1000 crore
CAG found a series of lapses on the part of KSPCB
Source: The Hindu
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