CAG report on land mortgage: IDCO unhappy
The state’s nodal land acquisition agency Odisha Industrial Infrastructure Development Corporation (IDCO) has hit back at the Comptroller & Auditor General of India (CAG). This was pertaining to its report on irregular land allotment to the industries and IDCO was not happy with the results which it had published.
The CAG had found IDCO guilty for irregularly conferring mortgage rights in the lease deeds executed with the industries. IDCO, in its compliance report submitted to the state government, has termed the observations of CAG as faulty, baseless and misconceived.
IDCO also explained that the central auditor CAG had not correctly interpreted the Industrial Policy Resolution (IPR) of the state meant for industrial facilitation. IDCO clarified in the compliance report, that it does not set up industries on its own and only provides land to the industrial units.
IDCO also clarified that its position and responsibility and stated that its responsibility is to facilitate infrastructure development like the construction of roads, drains and lights at the industrial estates and these activities cannot be pledged to banks.
IDCO also clarified that the industrialists have to mortgage the land with the banks as a primary mortgage for loans to start the units. IDCO also mentioned that it does not require to take the approval of the government to issue NOCs (no objection certificates) to the industries to mortgage leased land. According to the decision taken at the meeting of the 40th board of directors, IDCO is empowered to issue NOCs.
Source- Business Standard
CAG, Comptroller & Auditor General of India, Idco, Industrial Policy Resolution, land acquisition agency, No-objection certificates, NOCs, Odisha Industrial Infrastructure Development Corporation
