Aug 10, 2012, 10.02 AM IST

Centre favoured GMR in Delhi airport deal: CAG

A report by Comptroller and Auditor General of India (CAG) has blamed the Centre for favouring the GMR in the Delhi airport deal.

Source: IBNLive.com
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A report by Comptroller and Auditor General of India (CAG) has blamed the Centre for favouring the GMR in the Delhi airport deal.


The CAG report says the deal has led to losses in taxes and damages to passengers worth Rs 3,750 crore. The report also says losses from exploitation of land and airport charges at Rs 350 crore.


It also says Delhi International Airport got undue benefits worth Rs 3,400 crore by charging development fee.


It says 239 acres of land was given for commercial use at a one time payment of Rs 31 lakh and an annual payment of just Rs 100.


The CAG report says the current value of the land is around Rs 24,000 crore.


Praful Patel was the aviation minister during the period under CAG scrutiny.


GMR sources claim development fee was in the knowledge of all bidders and there was no undue benefit to Delhi International Airport (DIAL).


Meanwhile, government sources have told CNN-IBN that opinion was sought from Law ministry and Attorney General before approving development fees and that there was no post contractual benefit provided to Dial at the cost of passengers.


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