CAG report:Odisha Government incurred an alleged loss to the tune of Rs 125.99 crore on stamp duty

Bhubaneswar: 12/9/24:The Comptroller and Auditor General of India (CAG) has underscored that the state exchequer incurred an alleged loss to the tune of Rs 125.99 crore on stamp duty and registration fees due to the defective fixation and revision of Market Value Guidelines (MVG) for urban plots and buildings under the Odisha Stamp (Amendment) Rules, 2001 between 2018-19 and 2021-22 financial years in the state.

The CAG’s compliance audit report, 2022, which was presented in the assembly on Wednesday, highlighted several irregularities in six departments, including the Revenue & Disaster Management, Rural Development, Scheduled Tribe & Scheduled Caste Development, Minorities & Backward Classes Welfare, Co-operation, etc.

During the audit review of fixation and revision of MVG in 14 sampled Sub-Registrar (SR)/ District Sub-Registrar (DSR) Offices in the state, the agency found that no expert valuer was included in the district level valuation Committees and flawed categorisation of urban plots led to the huge loss to the exchequer.

The valuation committees are constituted at the subdivision and district level for initial fixation and periodically revision of the minimum values of properties for sale and purchase. This revision is necessary to prevent fraud related to under valuation of documents during registration of properties.

However, the Odisha Stamp (Amendment) Rules, 2001 did not specify the eligibility criteria, in terms of qualification or experience of the members of the committees. So, the Valuation Committees were constituted, without an expert member with formal credentials and recognition.

The CAG engaged the services of an Expert Valuer, registered with the Income Tax Department under the Wealth Tax Act and empanelled with the State Bank of India, for the market valuation of 100 selected immovable properties, under the jurisdiction of the 14 selected SR/ DSR Offices.

“As per the report of the Expert Valuer, the absolute difference between the fair market value and MVG ranged from Rs 62 lakh to Rs 72 crore in the case of 100 plots. Such a difference was higher than Rs 10 crore, in the case of 59 plots. The revenue implication towards loss of Stamp Duty and Registration Fees on account of undervaluation of these 100 plots (land component alone, without considering the valuation of the buildings constructed on them), worked out to be Rs 125.99 crore,” reads the report.

This apart, the report unearthed many discrepancies in various flagship programmes of the previous government, such as the implementation of Mukhya Mantri Sadak Yojana, the Post Matric Scholarship scheme for ST and SC students in Khurda district, resulting in the loss of crores to the state.