Goa’s state coffers have sustained a reported loss of ₹107 crore, attributed to the Town and Country Planning (TCP) department’s decision to grant concessions for additional Floor Area Ratio (FAR) to commercial establishments without imposing the mandated fees. An audit report by the Comptroller and Auditor General (CAG) highlighted this deficit, noting that the potential loss could soar to over ₹2,000 crore if calculated at rates previously suggested by the finance department.
The TCP department extended an additional 10.7 lakh square meters of FAR to 321 commercial establishments upon their requests, bypassing any fee collection. This action directly contradicted the finance department’s earlier directive, which had recommended a charge of ₹1,000 per square meter for such additional FAR and height. The audit report explicitly stated, “Due to non-levy of any fees while granting additional FAR to the commercial establishments, there was a loss of Rs 107 crore to the state exchequer.”
Further analysis in the audit report indicated a far greater potential revenue loss. If the fee for the additional FAR had been calculated based on the ₹20,000 per square meter rate applied to four-star and five-star hotels—which are also classified as commercial establishments—the estimated revenue shortfall would reach a staggering ₹2,147 crore.
Under the Goa Land Development and Building Construction Regulation, 2010, the TCP department is responsible for regulating building construction within the state. This regulation sets out technical parameters like FAR, building height, amenities, water supply, sewerage, and fire safety, with these specifications varying based on zoning and plot/building size.
According to a senior audit official, the TCP department, through a notification on August 9, 2023, categorized the FAR. Following this, the department amended its regulations by inserting a new clause (2) under 6.1.1. This new provision stipulated that the “government, on recommendation of the TCP board, shall grant additional height and FAR to the proposals on a case-to-case basis in consideration of the locational aspect, nature of development, use proposed, information available, and any such other criteria, if required. Such relaxation shall, however, not be relaxed for more than 20% permitted in the prevailing regulations.”
However, just twelve days later, on August 21, 2023, the TCP department issued another notification, effectively removing the 20% relaxation cap by deleting the relevant clause. This action lifted the previously established ceiling limit on additional height and FAR.
The audit report also drew a comparison to a 2015 notification from the TCP department, which allowed four-star and five-star hotels to receive “an additional FAR of 20% on the recommendation of the committee and on the approval of government.” Crucially, this concession was contingent upon the payment of ₹20,000 per square meter. Given that the 321 commercial establishments were primarily profit-driven ventures, the report strongly recommended that the TCP department should have imposed fees consistent with those charged to hotels.
Finally, the report suggested a review of the finance department’s prescribed rate for additional FAR and height, deeming it “minimal” and noting the absence of a tiered pricing structure for different categories of entities, including individuals and various commercial establishments.
