PRINCIPAL ACCOUNTANT GENERAL (AUDIT-I), WEST BENGAL

Local Audit Party : FAP-V/Q3-Q4/AMG-III/Non-LAD/HIDCO

Auditee Unit Name : West Bengal Housing Infrastructure Development Corporation Limited (HIDCO)
Dated : 15-Mar-24

Audit enquiry reference : #23 (AENQ-492066)

Subject: Excess annual expenditure of Rs.2469.92 lakh incurred over income by WBHIDCO on self-operated properties
during the years 2019-2020, 2020-21 & 2021-22.

The concept of setting up of New Town was conceived by the Planning Commission in the 9th Five Year Plan of Govt. of WB. In view of
this Government of West Bengal (GoWB) had initially prepared concept plans for development of two new towns, one at West Howrah on
the Western bank of River Hooghly and another on the eastern side of the city of Calcutta comprising parts of North and South 24
Parganas. The objective was to ease the pressure on the old city of Calcutta where the population as per the 1991 census was already 12
million.

The Calcutta Metropolitan Development Authority (CMDA) prepared a draft concept plan in May 1994. Based on that, the Housing
Department (HD), GoWB was assigned with the task of developing a “New Town” at the eastern fringe of Kolkata. Department of
Architecture and Regional Planning of I.I.T, Kharagpur prepared a master land use plan for the township. The concept of developing New
Town, Kolkata comprising a major part of Rajarhat block of North 24 Pgs and some Mouzas of Bhangar-II block of South 24 Pgs (outside
the Ramsar Wet land area) was thus originated.

The main objective of the development of New Town through Housing Department, GoWB was to create affordable housing stock for the
general people including EWS, LIG, MIG and HIG at affordable prices. The main objective of HIDCO is to develop New Town as a world
class planned township with all basic infrastructure. The financial policy of the project is to develop it in a self-sustained way without much
dependence on budgetary provision. HIDCO has developed a vast Eco Park (480 acres, which includes 100 acres water body) along with a
huge water body, the largest urban park in the country including some other entertainment facilities to create a social atmosphere for the
people of the country. In addition to the above some cultural and social hubs including Rabindra Tirtha, Nazrul Tirtha, Misti Hub (Sweets
Hub), Eco Urban Village, New Town Library, Mother’s Wax Museum and New Town Business Club have been developed. A world-class
Biswa Bangla Convention Centre and Biswa Bangla Gate are operational. The WBHIDCO is still in the stage of development and is in the
process of creating Infrastructural facilities on the land of the township.

From the Final Annual Accounts of WBHIDCO for the years 2018-2019, 2019-2020 & 2020‑21, it was observed that expenditures incurred
by the Company towards the maintenance of many properties were more than revenue earned from that property as tabled below.
(Amount in Lakh.)
 Financial Particulars of property Revenue Expenses on the Ga Remarks
Year Earned asset in/
Lo
ss

Convention Centre 392.30 682.79 -2

90
.49

Biswa Bangla Gate 37.56 80.73 -4

2018-19 3.
17

Nazrul Tirtha 19.81 225.28 -2

05
.47

Rabindra Tirtha 37.89 144.60 -1

06 Excess exp. over income
.71

Eco Urban Village 08.34 49.67 -4

1.
33

Utility Building AA-II 15.83 19.90 -0

4.
07

Total 511.73 1202.97 -6

91
.24

Financial Particulars of properties Revenue Revenue Gain/Loss Remarks

Year earned spent

Convention Centre 636.46 723.86 -87.40

Finance Centre Rent 217.87 222.91 -05.04

Biswa Bangla Gate 247.89 319.73 -71.84

2019-20
Nazrul Tirtha 31.20 249.39 -218.19

Rabindra Tirtha 28.18 136.50 -108.32 Excess exp. over

Income
Eco Urban Village 08.52 53.02 -44.50

Snehodia 42.32 171.36 -129.04

Utility Building AA-II 16.89 18.15 -01.26

Total 1229.33 1894.92 -665.59

Financial Particulars of properties Revenue Revenue Gain/Loss Remarks

Year earned spent

Eco-Tourism Park 907.05 1181.05 -274.00

Convention Centre 307.61 531.21 -223.60

Business Club 73.58 114.50 -40.92

Finance Centre Rent 112.14 129.85 -17.71

Biswa Bangla Gate 08.96 173.07 -164.11

Nazrul Tirtha 22.12 135.26 -113.14

Excess exp. over
income
2020-21 Rabindra Tirtha 14.07 92.59 -78.52

Eco Urban Village 09.12 53.98 -44.86

Snehodia 84.23 200.73 -116.50

Utility Building AA-I 01.46 36.27 -34.81

Utility Building AA-II 0.22 04.42 -04.20

Total 1540.56 2652.93 -1112.37

Thus, it was clear that WBHIDCO had to suffer revenue loss of a total of Rs.2469.92 lakh during the years 2019-2020, 2020-21 &
2021-2022 owing to self-operation by WBHIDCO staffs on those properties. This was indicative of the fact that those assets were not put to
use judiciously.

Audit also noticed from the details given under Note- 4 to the balance sheet regarding Property and Plants that the WBHIDCO had
depreciated its prime assets viz. Biswa Bangla Convention Centre and Biswa Bangla Gate Restaurant by Rs. 113.96 crore as of March 2021
 against the revenue realisation of just Rs.17 crore during the corresponding period.

WBHIDCO, therefore, instead of developing mechanism to gainfully utilise the assets created, continued to conceive and execute other
white elephant projects viz. Extension of Biswa Bangla Convention Center, Multi-Level Car Parking, Vertical City Project, etc.

Hence, it was evident from the annual accounts report that instead of being assets, those properties had actually become liability and
WBHIDCO instead of finding ways to earn revenue from big ticket assets created, continued to create further big-ticket project to strain its
budget without approval of the State Govt.

The facts and figures mentioned in the above audit observation may be confirmed and offer your comments.

Reply expected date : 15-Mar-24

Senior Auditor

To,
West Bengal Housing Infrastructure Development Corporation Limited (HIDCO)
“HIDCO BHABAN”, Premises No. 35-IIII,Major Arterial Road,Near 3rd Rotary,New Town,HIDCO Bhawan,
Kolkata-700156.