The Public Accounts Committee (PAC) of Parliament has asked the Centre to investigate — and take action against — officials for reported mismanagement of land under Baharat Sanchar Nigam Ltd (BSNL).

The panel, headed by veteran Congress MP KV Thomas, adopted a CAG report on land management in BSNL.

Sources in the know told BusinessLine the panel noted that all assets and liabilities of the Department of Telecom Services and the Department of Telecom Operations, worth ₹63,000 crore, were transferred to BSNL in 2000. This included huge tracts of land, both inherited and acquired.

The audit noted that BSNL still does not have a land management policy. The company is in possession of 402.99 lakh sq m and it is unable to protect its land from encroachment and cancellation of plots due to abnormal delay getting the inherited land transferred to its name.

The CAG had noted in its audit report that the total book value of the land as per the Management Information System data of the civil wing was ₹3483.44 crore.

The committee found that 8.46 lakh sq m of land in 101 plots was encroached. Most of the encroachments were in Madhya Pradesh, followed by Maharashtra.

Kept vacant

The panel also noted that as of March 2012, BSNL had 1,953 plots with freehold rights measuring 32.46 lakh sq m kept fully vacant across the country in 29 circles.

“There was also an abnormal variation in the book value of the inherited land and leasehold land on account of difference between the records of civil wing of corporate office and the audited accounts of the company, resulting in undervaluation of the assets of the company,” the committee noted.

It further asked the Ministry of Communications to take urgent steps to formulate a sound Land Management Policy at the earliest, to protect and preserve its invaluable large tracks of land.

“The Committee, therefore, recommend that every possible step should now be taken in right earnest for mutation of land so as reconcile the book values of property,” the report said.

The committee also said it was perturbed to note that despite a stipulation that transfer of assets from DoT to BSNL be completed by December 31, 2000, none of the inherited plots — numbering 12,194 and measuring 406.31 lakh sq m — were transferred as on March 31, 2012.

Stringent punishment

“The committee, therefore desires that stringent punishment be imposed on the responsible officers for remaining inactive for such a long period of time,” the panel said, adding added BSNL should be proactive to earn more revenue from its vacant land.