PANAJI: According to a report by the Comptroller and Auditor General (CAG), Goa has incurred a loss of ₹107 crore due to the town and country planning (TCP) department granting concessions to commercial entities by not imposing fees for additional floor area ratio (FAR). If calculated based on the finance department’s recommended rates, this loss could exceed ₹2,000 crore.
The TCP department allowed 10.7 lakh square meters of additional FAR to 321 commercial establishments upon request without charging any fees. In contrast, the finance department had instructed the TCP to impose a fee of ₹1,000 per square meter for the additional FAR and height permitted to these establishments.
The report highlights that the lack of fees for additional FAR resulted in a loss of ₹107 crore to the state’s revenue. If the finance department’s suggested rate of ₹20,000 per square meter—applicable to four-star and five-star hotels—was used, the revenue loss would amount to ₹2,147 crore.
Furthermore, the TCP department left the ceiling for granting additional height and FAR open-ended. Without regulations on fee imposition, 321 commercial establishments received additional FAR at no cost.
A senior audit official mentioned that on August 9, 2023, the TCP department issued a notification categorizing FAR. This was followed by an amendment introducing a new clause under regulation 6.1.1, stating that “the government, based on TCP board recommendations, shall grant additional height and FAR on a case-by-case basis, considering various factors.” However, just 12 days later, another notification on August 21 removed the stipulation that such relaxations should not exceed 20% of the allowed regulations, effectively eliminating any ceiling limit.
In 2015, the TCP department had indicated that four-star and five-star hotels could receive a “20% additional FAR upon committee recommendation and government approval,” contingent on a fee of ₹20,000 per square meter.
The report emphasized that since the 321 commercial establishments were created for profit, fees should have been imposed in line with those for four- and five-star hotels.
It also suggested a review of the finance department’s fee structure, as it was found to be minimal and lacking a tiered system for different categories, such as individuals and commercial entities, concerning additional FAR and height permissions.
The TCP department oversees building construction regulations in Goa through the Goa Land Development and Building Construction Regulation, 2010, which defines technical parameters such as FAR, height, amenities, water supply, sewerage, and fire safety. These parameters vary by zone, building type, and plot size.
