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The civic body of Ahmedabad, the Ahmedabad Municipal Corporation (AMC), has been accused of causing crores worth of financial loss due to its slum redevelopment policy. The Comptroller Auditor General (CAG) had pointed out in 2016 that the policy was "flawed" and "skewed towards offering cheap land to private bidders". Despite this, the AMC has made no changes to the policy yet.
The CAG had audited 13 slum redevelopment schemes and found that the land premium was fixed without considering the formula agreed under "land disposable policy of the state government". The CAG pointed out that this was "illegal" and a blatant violation of government policy. So far, the AMC has allotted 50,000 square metres comprising 10 plots under the in-situ slum redevelopment to builders.
The CAG report also pointed out that the developer had paid land premium that was 1.49 to 3.3 times higher than the existing jantri for that period. The AMC charged higher premium when it auctioned land for normal commercial and residential use in 2015. In fact, the CAG had pointed out in 2015 that between January and July 2015, the AMC had fixed a base price between 2.61 times and 6.59 times higher than the jantri rate for a few plots for commercial and residential projects. After the auction, it earned 3.2 times to 10.94 times the jantri rate for the same plots. The average premium charged from the developers participating in the slum redevelopment should have been 6.18 times higher than the jantri rate.
In 2008, the state government had passed a GR which insisted on charging existing commercial rates during auction or sale of government-owned plots. The AMC had earmarked 94,240 square meters of space for in-situ-slum redevelopment projects. However, the CAG's proposal to send slum redevelopment projects to be reviewed by the AMC's estate department's price fixation committee was never accepted by the slum redevelopment project division of the AMC, thus causing losses worth crores to the AMC.
The CAG report raises serious concerns about the AMC's slum redevelopment policy. The policy is clearly flawed and is skewed towards offering cheap land to private bidders. The AMC's slum redevelopment policy needs to be re-evaluated and revised to ensure that it is fair and equitable. The CAG's proposal to send slum redevelopment projects to be reviewed by the AMC's estate department's price fixation committee should be accepted by the slum redevelopment project division of the AMC. This will ensure that the AMC does not suffer any financial loss due to its slum redevelopment policy.
The government should also take steps to ensure that the AMC charges existing commercial rates during auction or sale of government-owned plots. This will ensure that the AMC earns a fair price for its land and does not suffer any financial loss. The government should also take steps to ensure that the CAG's recommendations are implemented, and that the AMC's slum redevelopment policy is revised to ensure that it is fair and equitable.
In conclusion, the AMC's slum redevelopment policy is clearly flawed and is skewed towards offering cheap land to private bidders. The CAG's recommendations should be implemented to ensure that the policy is revised, and that the AMC does not suffer any financial loss. The government should also take steps to ensure that the AMC charges existing commercial rates during auction or sale of government-owned plots. This will ensure that the AMC earns a fair price for its land and does not suffer any financial loss.
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