CAG Report Reveals 81% of Industrial Land Allottees at Yamuna Expressway Await Possession
The Yamuna Expressway Industrial Development Authority (YEIDA) has come under scrutiny following a report by the Comptroller and Auditor General (CAG) of India, which reveals that 81% of the allottees did not receive possession of their industrial plots. The CAG report exposes inefficiencies in land allocation and execution, with over 23,000 plots remaining without lease deeds.
Between 2013 and 2021, YEIDA allocated 2,428 industrial plots covering a vast area of 24.6 million square meters. However, only 453 of these plots went through the formal process of lease deeds or registries, leaving most of the allottees still waiting for possession nearly a decade after their land was allocated. By April 2022, none of the allotted plots had operational industrial units, rendering the allocation ineffective for economic development.
The CAG’s audit highlights several issues, including a lack of transparency in the allocation process. For industrial plots larger than 2,000 square meters, YEIDA relied on interviews rather than objective criteria, which introduced discretionary power and the potential for irregularities. Moreover, the absence of financial and technical eligibility assessments for larger plots complicated the process, making it difficult to ensure that the right parties were being allocated land. The report also criticizes YEIDA for failing to formalize lease deeds and provide land to investors, leading to delays of up to 12 years in some projects. The CAG estimates that the delays resulted in a loss of lease rent amounting to approximately Rs 122 crore.
The YEIDA has provided several reasons for the delays, including incomplete infrastructure development in the allocated areas, legal issues such as pending land encumbrances, and farmer protests over compensation. The authority also defended its decision to extend deadlines for allottees rather than canceling leases, arguing that it aimed to avoid litigation and facilitate project completion despite these external challenges. YEIDA also explained that deviations from standard pricing practices, such as not applying location charges uniformly, were meant to attract investors during uncertain economic times. The inefficiency in land allocation has severely impacted industrial growth in the region. YEIDA has allotted over 30,000 plots across various categories, including industrial, residential, and commercial. However, by April 2022, the total dues for industrial plot allottees stood at Rs 318 crore, representing 61% of allottees during the period. As a result, none of the allocated industrial plots were operational, frustrating investors and hindering regional industrial development.
In response to these challenges, YEIDA has recently made efforts to improve its performance. The authority has registered 3,040 industrial plots, with 1,400 completed in the past 18 months. Notable projects, such as Vivo’s 169-acre facility in Sector 24A, have started production along the Yamuna Expressway. Other companies, including Avery Dennison, Surya Global Flexi Films, and Bikanervala, have also begun operations in their allotted plots. This recent progress indicates that YEIDA is addressing its past inefficiencies, but the ultimate success of these efforts will depend on resolving the underlying issues, such as infrastructure development, timely land availability, and clear regulatory processes. Public sentiment largely reflects the concerns raised in the CAG report, with many stakeholders calling for greater transparency in the allocation process and quicker action on infrastructure development. As YEIDA continues with its future schemes, ensuring that land is ready for possession, eligibility criteria are clear, and infrastructure planning is efficient will be crucial to avoiding the setbacks that have plagued the authority in the past.
