CAG report: Undervalued property, attorney registrations cost Punjab Rs 2.94 crore

The state exchequer has lost Rs 2.94 crore due to undervalued property and power of attorney (PoA) registrations, according to the audit report. The loss includes Rs 1.2 crore from undervalued property registrations and Rs 1.74 crore from undervalued PoA registrations.

Ludhiana district recorded the highest loss of Rs 88 lakh from undervalued property registrations, while Mohali district reported the entire loss from PoA registrations. The 2024 report by the Comptroller and Auditor General (CAG) of India, tabled in the Punjab Assembly, highlights the financial impact.

The report reveals that 36 properties were registered significantly below the prescribed collector’s rates, causing a loss of Rs 1.19 crore. Undervalued property registrations in Ludhiana West (27) and Ludhiana South (2) tehsils caused substantial revenue losses.

A perusal of the audit report revealed that the properties were registered even up to less than 17 per cent the value of the Collector’s rates, causing heavy loss of stamp duty, registration fee and infrastructure development fee to the state exchequer.

In two such cases reported from Ludhiana South, a six kanal residential property with collector’s rate of Rs 98 lakh was registered for mere 16.5 lakh and another seven kanal residential property with collector’s rate of Rs 97.82 lakh was registered for mere 18 lakh, causing loss of Rs 6.51 lakh and Rs 6.38 lakh to the state exchequer, respectively.

For PoA registrations, Mohali district reported severe undervaluation. In Dera Bassi, an 18.37-acre property valued at Rs 13.5 crore was registered for Rs 2,400 instead of Rs 96.5 lakh. Similarly, in Zirakpur, a PoA for a 5.413-acre property valued at Rs 10.8 crore was also registered for Rs 2,400 instead of Rs 77.6 lakh.