Comptroller and Auditor General of IndiaReport No.5 of 2018

Government of Karnatakawww.agkar.cag.gov.in

O�ce of the Accountant GeneralEconomic and Revenue Sector Audit

Karnataka

Report of the Comptroller and Auditor General of India on

Grant, Lease, Eviction of Encroachment and Regularisation of Unauthorised Occupation of

Government Lands

PrefaceThis Epitome presents a summarised version of the Report of the Comptroller and Auditor General of India on “Grant, Lease, Eviction of Encroachment and Regularisation of Unauthorised Occupation of Government Lands” under the Revenue Sector, Government of Karnataka (Report No.5 of the year 2018).

The Report is divided into 9 Chapters containing 24 paragraphs relating to the Administration of Government land, apart from Introduction and Audit Framework. It brings out the de�ciencies noticed in the inventory management, disposal procedures, usage-monitoring, eviction of encroachments and regularisation. Each of these observations is followed by a recommendation of remedial measures.

The complete Report is available at www.cag.gov.in or www.agkar.cag.gov.in.

Bijit Kumar Mukherjee Accountant General

Economic and Revenue Sector AuditKarnataka

Introduction

Report of the Comptroller and Auditor General of India on

Grant, Lease, Eviction of Encroachment and Regularisation of Unauthorised Occupation of

Government Lands The Revenue Department is responsible for the administration of land owned by the Government. Management of land involves:

Grant/ Lease of land for agricultural and dwelling purposes; Monitoring of land already granted/ leased; Timely eviction of encroachments; and Regularisation in eligible cases.

1

Audit Objectives

Performance Audit was to assess

01

02

03

04

E�ciency of inventory management and transparency in grant/ lease

System of pricing for transfer of land

System to monitor the usage of land after transfer

Timely eviction of encroachments and regularisation in eligible cases

2

Sources of Audit Criteria

Audit was conducted against: Karnataka Land Revenue Act, 1964; Karnataka Land Grant Rules,1969; Other allied Rules;Noti�cations issued; and Court judgements.

3

Audit Scope and Methodology

Only Government land under Revenue Department was subject of Audit.

30 Taluks from 11 Districts (Random sampling).

320 Cases of grants/ leases pertaining to audit period were checked.

Period - 2012-13 to 2016-17.

150 cases prior to 2012-13 were checked for compliance to conditions of grant/ lease.

Conducted joint inspection with O�cials of Revenue Department in 277 cases.

4

No database of lands available for disposal, though required to be prepared annually. Lands for grant were identi�ed by bene�ciaries themselves 1

3

No database of lands already granted/leased

Seven institutions continued to be in use of lands even after expiry of lease periods

Inventory management of land

2

5

Compile electronic database of all grants/ leases.

Digitise all manual records relating to transfer of Government land.

RECOMMENDATIONS

6

No speci�c register or electronic database for processing of applications.

47-21 Acres-Guntas granted to 17 bene�ciaries without application.

No veri�cation of complete details of applicants before grant/ lease.

132-15 Acres-Guntas granted to 27 ineligible bene�ciaries.

Processing of applications

7

Due to non-veri�cation of status of land, 390-38 Acres-Guntas of land, not available for disposal, were initially granted in 10 instances.

In all these cases, possession of the land could not be handed over and necessitated grant of alternative land.

Non-assessment of extent of land required resulted in excess grant of 14-11 Acres-Guntas in 4 cases and non-usage of 115-26 Acres-Guntas in 5 cases.

Non-veri�cation of status and requirement of land

Issue suitable clari�cations to remove ambiguities in the demand and collection of dues from the grantees.

8

Institute a mechanism to assess the exact requirement of land.

RECOMMENDATION

9

CHECK LIST

487-30 Acres-Guntas of such prohibited lands, including lands prohibited within municipal limits, were granted to 86 bene�ciaries.

Grant of prohibited land

Prohibited lands as per KLR Rules and related judgements;

Sendivan

Phut B Kharab

Tank Bed

Burial Ground

Gunduthopu

10

Re-consider grant of public lands prohibited under KLR Rules.

RECOMMENDATION

11

Valuation of land

Uniform policy introduced in 2015 vide Rule 22A was:

This posed di�culties in raising demands correctly and in computation of arrears.

Based on status of bene�ciary and purpose for which land was granted/ leased; Not clear regarding periodicity and enhancement of charging lease rents.

12

Grant of ineligible concession and incorrect valuation of land

Out of 320 Cases checked

This posed di�culties in raising demands correctly and in computation of arrears.

13

Amount of concession granted in 5 cases without application by the bene�ciary or recording reasons for the same

Amount of concession granted in 30 cases due to adoption of lesser market value, guidance value, etc.

Potential revenue not demanded in 29 cases due to non-adoption of principles of Central Valuation Committee

Ineligible concession in land price granted in 51 cases

Fix price of land by adopting valuation principles of Central Valuation Committee.

Issue suitable clari�cations to remove ambiguities in the demand and collection of dues from the grantees.

RECOMMENDATIONS

14

CVC

Monitoring and enforcement Discrepancies in regularisation for agriculture

No mechanism existed for periodic inspection and reporting

Joint Physical Veri�cation revealednon/ partial use and diversion of land 726 - 29 Acres-Guntas

Non-demand of lease rent ` 7.33 Crore

`

15

Strict monitoring of usage of land.

Timely collection of revenue due, preferably through periodic reminders from the electronic database.

RECOMMENDATION

16

Revenue Due

Usage of Land

Usage of Land

Usage of Land

Identi�cation and accounting of encroachment

Public complaints on encroachmentGood initiative but poor follow-up;1856 out of 2608 complaints received were pending veri�cation and eviction.

462637 Acres of land rejected under regularisation scheme were not accounted as encroachments.

New encroachments were listed after August 2013*.

*Except in Bengaluru Urban District.

Mechanism of periodic inspections and identi�cation.

17

NO

Update the existing Action Plan by addition of new encroachments reported.

Time-bound eviction procedures in respect of applicants whose applications were rejected under the scheme for regularisation.

RECOMMENDATIONS

18

UPDATE

8 9 - 3 1 A c r e - G u n t a s encroached in four Districts for di�erent purposes were granted to the encroachers, potentially encouraging further encroachment.

Total Encroachment448615 Acres

262293 Acres Reported to be evicted

18274 Acres Protected after eviction

Eviction of encroachment

19

Joint InspectionReport

43 Cases stated to be evicted

22 CasesStill encroached

Follow-up after eviction

Karnataka Public Lands Corporation was set up to:

Distribute such resumed lands to various users.Protect land resumed from encroachment;

Activity of KPLC was limited to monitoring the progress of ‘Action Plan for eviction’ by Deputy Commissioners and reporting to the Government.

20

A Special Court was set up in 2016

1131 cases yet to be transferred

Only 69 cases were transfered to this court

Verify and document the ful�lment of eligibility conditions.

RECOMMENDATIONS

21

Fix time frames for redresssal of complaints on encroachments.

Constitute Enforcement Cell for each District.

94 A

94 B

94 C

94 CC

Lands occupied prior to 14 April 1990 Last date of application - 5 August 1991

Lands occupied prior to 14 April 1990Last date of application - 15 July 1999

Introduced from 2013 for Rural areas

Introduced from 2015 for Urban areas

SCHEMES

22

Regularisation of unauthorised occupation

Discrepancies in regularisation for agriculture

157792 applications (334769 -25 Acres-Guntas) received for regularisation.

164185 applications (447967 - 05 Acres-Guntas) received for regularisation.

1055-19 Acres-Guntas regularised contrary to provisions during 2012-17.

Excess grant, grant to ineligible bene�ciaries and regularisation of Gomala land;437-30 Acres-Guntas - ` 31.57 crore.

47348 applications (164874-24 Acres-Guntas) still pending disposal, delay of upto 18 years.

23

2017

2012

199194A

199894

B

Discrepancies in regularisation for dwelling purposes

No documentation of ful�llment of eligibility conditions. Applications were processed based on a self certi�cate of the applicant.

Excess grant of 8872 sq.ft. of land costing ` 10.56 lakh in 31 cases.

Short collection of cost of land of ` 24.38 lakh in 220 cases.

Grant of excess built-up area in 14 cases.

24

Non-repeal of earlier rules

The Karnataka Land Revenue (Regularisation of Unauthorised Occupation of Lands) Rules, 1970 which deals with regularisation was open-ended with no cut-o� dates for application.

Even on introduction of Sections 94 A (1991) and 94 B (1998) with speci�c cut-o� dates for �ling applications, the Rules ibid have not been repealed.

25

Verify and document the ful�lment of eligibility conditions.

Device an Action Plan to resume Government land wherever area occupied was in excess of prescribed limits.

RECOMMENDATIONS

26

Consider repealing of Karnataka (RUOL) Rules.

94

KRUOL

A,B

CHECK LIST

Performance Audit Team

Sri. Gloyi AugustineDeputy Accountant General

Sri. GangappaSr.Audit O�cer

Sri. Hemant Kumar VAsst. Audit O�cer

Sri. Sunil Kumar D HSr. Auditor Sr. Auditor

Sri. Yathish C K Sri. Shankar L Sr. Auditor

Asst. Audit O�cerSri. Mahesh Aravind

Asst. Audit O�cerSri. Guruprasad M S Sri. Babu Rajendra P

Supervisor

Smt. Neeraja TagatSr.Audit O�cer

Sri. Bipin P SSr.Audit O�cer

Sri. PuttaswamyAudit O�cer

This Epitome presents a summarised version of the Report of the Comptroller and Auditor General of India on “Grant, Lease, Eviction of Encroachment and Regularisation of Unauthorised Occupation of Government Lands” under the Revenue Sector, Government of Karnataka (Report No.5 of the year 2018).

The Report is divided into 9 Chapters containing 24 paragraphs relating to the Administration of Government land, apart from Introduction and Audit Framework. It brings out the de�ciencies noticed in the inventory management, disposal procedures, usage-monitoring, eviction of encroachments and regularisation. Each of these observations is followed by a recommendation of remedial measures.

The complete Report is available at www.cag.gov.in or www.agkar.cag.gov.in.