GIDC caused over Rs 1 crore loss to exchequer: CAG

Panaji: The Comptroller and Auditor General (CAG) observed irregularities by the Goa Industrial Development Corporation (GIDC) in taking office premises on lease from Myles High Hotels and Towers Pvt Ltd, resulting in a loss of Rs 1.2 crore.The CAG said that on Nov 11, 2023, the GIDC received an unsolicited offer from Myles High Hotels and Towers Pvt Ltd for leasing commercial office space on the second floor of their building at Patto, Panaji, for Rs 5.7 lakh plus taxes plus maintenance.“The same day, the offer was discussed at the 387th board meeting, and it was resolved (resolution 67/2023) to acquire the premises on lease at the same rate and terms and conditions in which the directorate of panchayat (DoP) acquired four other floors of the same building,” the CAG said.“Thus, the rate quoted by Myles High Hotels and Towers Pvt Ltd was already in accordance with the prevalent rates of lease with the DoP. The GIDC sought to get PWD rent valuation for the said premises but did not pursue the matter when it was advised to approach the PWD’s work division-1,” the CAG said.On Nov 22, 2023, the GIDC accepted the lease offer for the first year with a cumulative annual financial impact of over Rs 94 lakh.

“Myles High Hotels and Towers Pvt Ltd issued a document to hand over the keys of the premises to the GIDC, but it was not taken over. The GIDC sought a revised quote on June 7, 2024, and a revised quote of over Rs 7.68 lakh plus taxes plus maintenance for the same premises was given,” CAG said.On June 15, 2024, the GIDC accepted the revised offer. On June 21, 2024, the GIDC signed the lease deed for 36 months from Jan 2024, stating a monthly rent of Rs 5.7 lakh plus taxes plus maintenance from Jan 2024 to May 2024 and Rs 7.6 lakh plus taxes plus maintenance thereafter.The GIDC undertook interior works and spent Rs 77 lakh in July and Aug 2024 and shifted into the new premises in Sep 2024.“There were no documents on record to detail the formal handing-taking over of the premises and the physical condition of floors, walls, etc, on the date of taking over,” the CAG said.Stating that the following irregularities were noticed during the audit,the CAG said, “There was neither an internal decision/approval for renting of additional office space prior to Nov 2023 nor was a public notice issued by the GIDC inviting bids for commercial space on rent. Immediate acceptance of an unsolicited offer from Myles High Hotels and Towers Pvt Ltd, despite being over four times the prevailing market rate was irregular.

”“The reply of the management is awaited,” CAG added.