The Comptroller Auditor General (CAG) of India has pulled up the Delhi Development Authority (DDA) in its latest performance audit report. Not only has the authority been criticised for showing inflated budgetary estimates, but also for the quality of the houses that the land-owning body routinely builds and allots. In line with the concerns echoed by many residents who have been allotted DDA houses over the years, the performance audit report states, “There were inordinate delays in the disposal of constructed houses to the people. Besides, houses were allotted without ensuring the basic amenities to people.” According to the report, the DDA did not prepare budgetary estimates on a realistic basis over the last few years. For instance, in the financial year 2004-2005, the authority prepared a budgetary estimate of Rs 627.15 crore, whereas its actual expenditure was Rs 344.30 crore leading to a 45 per cent shortfall in the budgetary estimate and actual expenditure. More importantly, the CAG report alleges that in awarding contracts, the DDA has invoked clauses that have led to undue benefits running into crores of rupees for contractors. Despite having on board architects who draw up designs for its various projects, the performance audit report states, “There was no practice in the DDA to obtain the required certificates from the architect to ensure that the work was executed as per approved drawings and designs.” Interestingly, the report sheds light on the housing shortage in the Capital. Even as lakhs of people line up to avail a chance to own a DDA flat, whenever the authority puts them up for sale, the report and in fact DDA’s own yearly target summary suggests the authority has been grossly underperforming (see box). For instance, the authority was supposed to construct 10,676 houses in 2005-2006 but managed to begin construction on only 1670 houses. This consistent delay in performance has also been criticised by the CAG. “It is evident that the DDA could not achieve its targets during the last five years. The shortfall ranged from 58% to 88.5% despite the fact that the DDA had adequate budgetary provisions for the construction of houses.” The CAG has made a variety of recommendations to the DDA in order to rectify these glaring anomalies. One particular recommendation advises the DDA to periodically review the increasing costs of construction while pricing houses. If put into effect, this could possibly result in DDA houses being allotted at costs higher than the affordable rates in effect at present. “We are still studying the report and will make a response once we have perused all details,” DDA’s Director, Public Relations, Neemo Dhar said.
