CAG report says Cong govt doled out 'undue benefit' to Satyam

Satyam paid Rs 4.25 Crore as against Rs 170 Crore

PTI | March 31, 2010



The Congress government in Andhra Pradesh doled out "undue benefit" to the tune of Rs 165.75 crore to erstwhile Satyam Computers Limited by allotting 50 acres of prime land at a throwaway price, the Comptroller and Auditor General has said in its report.

While castigating the Congress government on this land deal, the CAG in its latest report submitted to the Andhra Pradesh Assembly today observed: "this transaction was violative of the Constitutional provisions of equality of opportunity and did not meet the requirement of transparency.

"The state government allotted 50 acres of land to Satyam Computers near Visakhapatnam in December 2008 at a concessional rate of Rs 10 lakh per acre. Satyam was actually entitled to get only 7.5 acres at a concessional rate and the rest at market value (Rs 4 crore to 4.55 crore an acre).

"As against Rs 170 crore payable, Satyam paid a merger amount of Rs 4.25 crore. The allotment of land in excess of the limits prescribed in the Information and Communications Technology Policy resulted in an undue benefit of at least Rs 165.75 crore to the company," the CAG report said.

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