Odisha Tourism Faces ₹3.24 Crore Loss Due to Unrecovered Lease Dues: Audit Report

Bhubaneswar: A preliminary audit conducted by the Accountant General (AG) of Odisha has raised serious concerns over the non-recovery of ₹3.24 crore in lease dues from private operators managing several Odisha Tourism properties under Public-Private Partnership (PPP) mode.

The audit flagged long-standing dues in Annual Lease Rent (ALR) from seven leased properties, including:

Wayside Amenity, Sunabeda

Pantha Nivas, Bhadrak

Panthasalas at Sarankula and Kantilo

Tourist Reception Centre, Baripada

Dues Pending Since 2016:

Some of these leases began as early as 2016, and the rent dues have been accumulating for several years. As per the Tourism Department’s guidelines:

ALR is 10% of the upfront payment by the private agency.
The rent increases biennially based on the Wholesale Price Index (WPI).
ALR is to be paid in advance on the anniversary of the agreement date.
A penal interest of 18% per annum applies for late payments.

Despite these rules, the audit revealed that:

No demand notices were issued to all seven lessees for the current dues.
Only six units received previous notices, but no follow-up enforcement occurred.
No lease termination proceedings have been initiated.

Audit Observation:

“Non-recovery of current ALR and lack of enforcement mechanisms have resulted in the non-realisation of ₹3.24 crore. The department’s inaction is a serious lapse,” the audit noted.

This has raised questions about the monitoring and accountability within the Odisha Tourism Department, especially given that PPP projects are meant to enhance transparency and efficiency.