CH NEWS, BENGALURU
An audit report released by the Comptroller and Auditor General has revealed that the Karnataka Industrial Areas Development Board granted an unauthorized financial benefit totaling ₹31.90 crore to automobile manufacturer Toyota Industries Engine India during a major land allotment project in Jigani.
The performance audit document, formally tabled before the state Legislative Assembly, scrutinizes irregularities in public land management and industrial facilitation. According to state auditors, the financial discrepancy stems from two distinct administrative exemptions granted during land allocation proceedings in the Jigani and Bukkasagara village industrial zones. Specifically, the regulatory watchdog found that the industrial development board waived ₹27.07 crore that was originally due as mandatory compensation and service charges for land designated for internal road infrastructure. Furthermore, the audit uncovered an additional financial concession of ₹4.83 crore resulting from a unilateral decision to slash applicable service charges from 12% down to 6%.
The chronological roots of the transaction trace back to 2019, when Toyota Industries Engine India formally approached the state agency seeking the acquisition and allotment of an 11.3-acre parcel situated directly adjacent to its existing manufacturing facility. The industrial firm deposited ₹22.92 crore with the development board to cover land acquisition costs. By March 2020, authorities formally executed a lease-cum-sale agreement granting control of the property for a 15-year tenure under a designated ‘Single Unit Complex’ framework.
However, operational shifts altered the trajectory of the industrial expansion. Rather than proceeding with the construction of a new production facility on the newly acquired acreage, corporate leadership elected to consolidate the intended project within their current manufacturing premises. Consequently, in 2021, the state government approved a modified utilization plan allowing the company to dedicate the newly acquired land toward mandatory green belt requirements and prospective future expansions.
The core audit objection centers on the lack of explicit legal authorization for the subsequent financial waivers. Investigators confirmed that while the state government sanctioned the updated land usage for environmental green zones, the official government order contained no provisions endorsing the waiver of road compensation fees or the steep reduction in service levies. The revelation has sparked intense scrutiny from opposition legislators regarding administrative oversight and financial accountability within state-run industrial boards.
