After BBMP raids, ACB smells 'corrupt' deals in building plan approvals

After raiding BBMP offices for three days, the Anti-Corruption Bureau (ACB) said on Wednesday it would begin scrutinising the documents of all buildings with 10 or more floors and apartment complexes built on two or more acres.

The corruption watchdog says it has seen "major deviations" in Transferable Development Rights (TDR), advertisement, revenue and finance wings of the BBMP. While the ACB put a number to the losses caused to some departments, it said the fraud caused by the irregularities in several others was yet to be quantified.

It said the BBMP's advertisement wing had failed to collect a revenue of Rs 300 crore, including Rs 37 crore from skywalk advertisements and Rs 6 crore from bus stop advertisements.

The ACB found "large-scale "irregularities in the TDR and town planning departments. "Substandard buildings were built with the sole intention of getting exorbitant TDR which was used to build new buildings. In some works, fake documents were created to show road-widening without any actual work and compensation was sanctioned as per the files," the ACB statement said, adding that fake documents were also created to get the TDR for government land.

The ACB said officials in the town planning department were involved in multiple irregularities, starting from approving plans to issuing occupation certificates (OC).

"Without any spot inspection, plans were sanctioned for construction of apartments on lake land and in buffer zones of lakes. Khatas have been created for such buildings. OCs have been given to buildings that are still under construction," the bureau said.

The ACB found cases, where buildings with permits to have three floors, were allowed to have six floors. "BBMP officials have not taken any action in this regard. Documents related to 10+ floors and apartments built on 2+ acres are under inspection. Estimated losses are being calculated," it said.

In the revenue wing, an inspection of just seven files showed Rs 217-crore losses to the BBMP due to "dishonest" tax collection.

It also alleged that the BBMP's town planning department jacked up the TDR and defrauded crores of rupees.

The ACB said a team of 200 officers and personnel searched 33 locations in three zonal offices on Wednesday and found several issues. The actions, it said, had an immediate impact on some private agencies paying pending dues and taxes of Rs 15 crore.

'Checks and balances have failed'

In the BBMP's stormwater drain (SWD) wing, the ACB seized tender documents for works worth Rs 1,050 crore taken up in the last five years.

"Inspection of files showed that SWD works were awarded to select few contractors. Prima facie, irregularities have been found in silt-removing works. Files related to fake documents and audit reports as well as SWD encroachment are under inspection," it said.

The ACB said the system of checks and balances within the BBMP has failed. It gave the example of the internal vigilance wing's failure to take action despite finding shortcomings in the TDR wing.

It also cited a lack of action to fix the issue of Rs 75-crore overbilling in the waste management department flagged in the 2014-15 audit report.