The KIADB criticized the granting of undue benefits to a private firm

According to the CAG report, for the year ending March 2024, KIADB did not collect or collect ₹24.17 crore as compensation for 9,761 square meters of land used as roads. It also failed to collect service charges of ₹2.90 crore on the land. | Photo credit: File Photo

The Comptroller and Auditor General of India (CAG) has pulled up the Karnataka Industrial Areas Development Board (KIADB) for extending an undue benefit of ₹31.90 crore to Toyota Industries Engine India Pvt. Ltd. in Jigani and Bukkasagara in Anekal taluk of Bengaluru city.

The CAG report for the year ending March 2024, tabled in the Legislative Assembly on Monday, said the KIADB had acted in violation of the government order by exacting compensation for land used as roads and reducing the rate of service charges, giving undue benefit to the company.

No refund required

According to the KIADB report, it did not collect or collect ₹24.17 crore as compensation for 9,761 square meters of land used as a road. It also failed to collect service charges of ₹2.90 crore on the land.

Further, the KIADB has reduced the service charge rate from 12% to 6% on the company’s request, in violation of the government’s February 2021 order. The reduction resulted in an additional undue benefit of ₹4.83 crore, the report said.

“wasteful spending”

In another observation, the CAG has flagged wasteful expenditure of ₹1.55 crore on the proposed regional science center in Mysuru. The Department of Electronics, IT and BT proposed the project at a cost of ₹ 14.50 crore on seven acres of land on the University of Mysore campus near Kukkarahalli Lake.

Work was halted in 2016 after it was found that the proposed construction site was located at the bottom of the lake, making the expenditure on the project a waste, the report said.

Published – 21 Sep 2026 21:04 IST