CAG slams Gujarat for giving undue benefits to Adani and Ambani

CAG slams Gujarat for giving undue benefits

The Comptroller and Auditor General (CAG) has pulled up the Gujarat government for providing undue benefits to corporates, notably the Adani Group and Reliance. 

According to a report in The Times of India, the CAG, ‘highlights irregularities amounting to more than Rs 25,000 crore, which includes what the CAG says was around Rs 1,500 crore in undue benefits to certain companies, including Reliance Petroleum, Essar Power and the Adani Group.’

“(The) CAG noted that the Gujarat Maritime Board applied incorrect wharfage rate under the Captive Jetty Agreement ‘with Reliance Petroleum Ltd, which resulted in short recovery of Rs 649.29 crore to the government.’ CAG also noted that the Gujarat Urja Vikas Nigam Ltd (GUVNL) did not fix delivery points after the finalization of power purchase agreement, resulting in ‘undue benefit of Rs 587.50 crore to Essar Power Gujarat Ltd.’ CAG said the non-monitoring ‘of the construction quay in phase 1 of Adani Group-owned Mundra port led to short recovery of Rs 118.12 crore.’ ” the report says.

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