New Delhi, Aug 5 (IANS) The Comptroller and Auditor General of India (CAG) on Friday slammed the Housing and Urban Development Corporation Ltd (HUDCO) for “non judicious” and “excess” mobilisation of nearly Rs 3,300 crore leading to Rs 30.39 crore additional interest burden on the firm.
“HUDCO mobilised Rs 37,128.32 crore during 2010-11 to 2014-15, but the mobilisation was not judicious, on account of higher proportion of bank loan, which carried interest rates higher than those of funds from other sources by one to two per cent.
“Assessment of requirement of fund was not made based on laid down policy or framework and certain elements of funds inflow/outflow were not given due consideration resulting in excess mobilisation of Rs 3,277.96 crore and additional interest burden of Rs 30.39 crore,” CAG said in its report tabled in Parliament on Friday.
The public account watchdog also rapped the state-run company for the rise in quantum of defaults and non-performing assets during the last five fiscals ending 2014-15.
“Deficiencies in internal guidelines also affected the quality of assets. Deficiencies in existing appraisal mechanism, system of disbursement, monitoring of financial projects and waiver of critical pre-disbursement conditions led to considerable loan accounts turning into non-performing assets, which were in the range of 5.46 to 6.76 per cent during the five year period,” the report said.
The amount in default rose from Rs 3,766.86 crore in 2010-11 to Rs 4,795.05 crore in 2014-15, while NPA soared from Rs 1,227.60 crore to Rs 2,029.33 crore during the same period, it said.