The comptroller and auditor general (CAG) has slammed the state government for granting an undue benefit of Rs20.21 crore to Satyam Computer Services Limited (SCSL).

The company was given land at a rate much lower than the existing market price for the Multi-model International Passenger and Cargo Hub Airport (Mihan) at Nagpur.

And SCSL was given the concession without the approval of the board of directors of the Maharashtra Airport Development Company (MADC), nodal agency for the project.

While selling land to the various companies establishing their facilities at the special economic zone in Mihan, the rate finalised by the board of directors was Rs24.28 lakh per acre.

However, SCSL was given land at the rate of Rs18 lakh per acre. It resulted in a loss of Rs6.28 crore for the MADC, and subsequently for the government.

On the other hand, Shapoorji Pallonji and Company Limited (SPCL) had to buy land at Rs26.3 lakh per acre a rate higher than the quoted price.

After the first deal at a discounted rate in 2005, SCSL made a request for additional land. The company was allotted 28.06 acres of additional land at the rate of Rs22.35 lakh per acre in March 2007. This was done without approval of the board of directors.

The market price during 2005-06 was Rs72 lakh per acre, as offered by M/s Reatox Builders & Developers for the non-processing zones. The irregularity led to a revenue loss of Rs13.93 crore. The total loss in the two deals was Rs20.21 crore, the CAG report has said.

In its clarification to the CAG, the MADC management has said that the first allotment to SCSL and the SPCL deal was not made on the same day. However, the CAG is not ready to buy it.

Advertisement for the land was given in December 2004, while the Centre approved the SEZ in August 2005. For the allotments to SCSL and SPCL, it is true that they were not done on the same day, but both proposals were approved in the same meeting on December 5, 2005, the report said.