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HomeCity NewsAnnabhau Sathe Corporation paid Rs. 1 cr excess for flat: CAG

Annabhau Sathe Corporation paid Rs. 1 cr excess for flat: CAG

Purchase of a flat by Maharashtra Governments Annabhau Sathe Development Corporation has come under the scanner of the CAG which has found irregularities in the transaction.

Government auditor Comptroller and Auditor General (CAG) has said in its report tabled during the monsoon session of state legislature that the corporation paid more than the market price for a flat in suburban Borivali, meant as an accommodation for the visiting officers.

Further, the corporation neither has its possession nor the original papers related to the purchase.

The corporation purchased the flat with carpet area of 809 sq ft from a private person in November 2013 for Rs. 1.86 crore. CAG notes that as per the Department of Registration and Stamps, the then market value of the flat was Rs. 84.28 lakh.

Lack of transparent purchase procedure resulted in excess expenditure of Rs. 1.02 crore, CAG has said.

In its reply to CAG in October 2015, the corporation stated that its board had authorised the managing director to purchase the flat. It also conceded that it did not have the key to the flat or the original papers even two years after the purchase.

CAG has said that the reply confirms the seriousness of the irregularity in the entire transaction.

The corporations mandate is to work for the upliftment of the Matang community.

Ramesh Kadam, a former chairman of the Corporation, is currently behind bars on corruption charges.

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