Comptroller and Auditor General of India raps Telangana State Industrial Infrastructure Corporation for not conducting regular survey of its land | Photo credit: BY ARRANGEMENT
The Comptroller and Auditor General of India has hit out at the Telangana State Industrial Infrastructure Corporation (TSIIC) over the delay in land acquisition for Hyderabad Pharma City (HPC) and National Investment and Manufacturing Zone (NIMZ) Zaheerabad projects.
It also approached the TSIIC for not conducting regular survey of its lands and causing loss of revenue by giving undue benefits to allottees in several cases.
There has been an inordinate delay of more than five and seven years in land acquisition for the HPC and NIMZ Zaheerabad projects, resulting in delays in achieving the expected investment and job creation, the CAG said in a report for the year ending March 31, 2022.
After sharing the results of the compliance audit, he said TSIIC had utilized a loan of ₹725 crore from the Housing and Urban Development Corporation (HUDCO) for land acquisition for NIMZ projects, but diverted ₹317.49 crore for land acquisition in other projects, e-city development, loan repayment and operational requirements.
The audit found that alienation orders from the Telangana government were passed in respect of 23,717 acres, which included 19,669 acres of government land. The alienation proceedings had been going on since 1974. The reasons for such a long duration were not recorded. Despite the non-finalization of the alienation proceedings, TSIIC allocated the plots to private individuals and executed purchase contracts based on the preliminary market value of the plots.
TSIIC has not conducted a regular survey of its 53,474 acres of land since it was founded in 2014, the report said.
The CAG also sought to point out how the state industries and commerce department had allotted 20 acres at Hardware Park, Mamidipally, to Adani Defense Systems and Technologies at a concessional rate of ₹40 lakh per acre against TSIIC’s prevailing land rate of ₹2.13 lakh per acre, deviating from the Cabinet decision on subordinate benefits. ₹ 34.60 crore for the beneficiary.
The Electronic Systems Design and Manufacturing Advisory Committee allotted 165.21 acres to 39 allottees, though it was not competent to do so, extending an undue advantage of ₹208.24 crore.
The report also found fault in allotment of 511 acres of TSIIC to Vem Technologies against the actual requirement of 49 acres as assessed by TSIIC’s technical advisor at a concessional rate in violation of the land allotment policy and NIMZ guidelines. This resulted in loss of revenue to TSIIC and extension of undue benefits to beneficiaries to the tune of ₹106.91 crore.
The CAG report said the state government can take appropriate steps to expedite land acquisition for industrial parks; ensure timely completion/upgradation of infrastructure projects by TSIIC; and complete the alienation process of government lands owned by TSIIC. The CAG emphasized the need for the Department of Industries and Commerce and the TSIIC to follow the decisions of the Cabinet Sub-Committee and the Allotment Orders for the provision of concessional allotments and infrastructure facilities and wanted the TSIIC to incorporate appropriate provisions in the sale deeds to ensure restoration of premises in case the projects are not implemented by the allottees.
The report also marked Amazon Data Services India’s land allocation for HPC. The audit found that the allotment of land in HPC for setting up a data center was a deviation from the purpose for which Pharma City was designed. The target of generating direct employment for 1.66 lakh people in HPC was also in jeopardy as the job potential of the data center was very minimal, the CAG report said.
Published – April 1, 2026 12:10 PM IST
