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The Land and Development Office (L&DO), which is an attached office of the Ministry of Urban Development (Ministry), is responsible for the administration of the properties of the Government of India (Gol) in Delhi. The L&DO reportedly administers 60,526 residential, commercial, industrial, and institutional leases, covering a total area of 19,995 acres, which constitutes 5.5 per cent of the total area of Delhi covering prime localities in Nazul areas like Chanakya Puri, Jor Bagh, Golf Links, Sunder Nagar, Defence Colony and Connaught Place within the Lutyens Bungalow Zone (LBZ) and elsewhere, as well as rehabilitation colonies like Lajpat Nagar, Rajender Nagar and Patel Nagar.
Out of these leases, 28,824 leases have been converted into freehold since 1992. The functioning of the L&DO was previously reviewed and reported in the C&AG's Audit Report No. 2 of 2000 - Union Government (Civil) Transaction Audit Observations. However, despite the Ministry's specific assurances in the Action Taken Notes submitted to the Public Accounts Committee of Parliament, most of the deficiencies pointed out in the Audit Report.
In particular those relating to poor documentation of properties, irregular revision and non-revision of ground rent, and non-recovery of outstanding dues from lessees, continued to persist. Consequently, another performance audit of the L&DO, covering the period 2003-08, was conducted between August and December 2008.