The audit, which covers 2011-12, said serious lapses and irregularities were also pointed out by the Public Accounts Committee as it examined an earlier CAG report but no effort was made by the MoD to streamline the same.
“The ex-lessees continued to occupy prime defence land unuthorisedly even after expiry of leases. The DEOs had also failed to take advance action for renewal or termination of leases in disregard of the guidelines...
“Further, cases of encroachment by other department and misuse of defence land by the local military authorities for unauthorised purposes such as running of hostels and shopping complexes constructed from non-public funds continued unabated,” it said.
The CAG report has made these observations in a chapter devoted to improper management of defence land.