Hidco began the land acquisition in 1999 but till March 2007, it had rehabilitated only 17 per cent of the ousted families, according to CAG’s report for the year to March 31, 2007.

“The rehabilitation of project oustees was not adequate, as only 17 per cent of identified project affected families, whose dwelling units had been acquired, were rehabilitated,” the CAG has noted.

The report said according to the HIDCO management, “a good percentage of land owners are outsiders” and “a certain percentage of families are above the poverty line”.

The CAG report has also highlighted how planning for the New Town project lacks focus, leading to sharp cost increases and slow implementation.

Only 52 per cent of the projected land has been acquired and the delay in acquisition led to an extra cost of Rs 78.76 crore.

“Even after eight years’ of existence, the company had yet to acquire and develop 3,075 hectares of land in three phases due to non-preparation of detailed project reports, annual work plans and absence of coordination between land acquisition and development,” the report notes.

Another Rs 78.98 crore was lost due to delays of 10 to 65 months in awarding contracts for land development, unrealistic estimates, selection of non-qualified contractors and failure to arrange earth required for land filling.

Hidco, the CAG said, had not fixed fair and reasonable market prices for land to be acquired under the Land Acquisition Act of 1894, leading to short payment of Rs 50.34 crore as compensation to land owners.

On other instances, it made excess payments of Rs 67.58 crore to land owners under three mouzas.

Hidco had not adopted appropriate rates for different items of work relating to land development either, leading to an additional expenditure of Rs 57.66 crore.

Further, the company paid Rs 40.10 crore to various contractors on account of inadmissible items and doubtful works.

The measurement of work was neither cross-checked nor reconciled, leading to doubtful payments to contractors, the report notes.

Trinamool Congress chief Mamata Banerjee said her party had been the first party to point out the plight of Rajarhat.

“We have been continuously saying that there is corruption in Rajarhat land acquisition process. And now it is official. The CAG also confirmed it,” said Mamata.