Daijiworld Media Network – Panaji

Panaji, Aug 15: Despite being pulled up by the Comptroller and Auditor General (CAG) for accepting an “unsolicited” lease offer, the Goa Industrial Development Corporation (GIDC) has extended its lease agreement with Myles High Hotels and Towers Pvt Ltd from three to nine years, with an option for a further three-year extension. The revised deal also includes an additional security deposit of over Rs 99.59 lakh, taking the total to Rs 1.58 cr.

The CAG had earlier flagged that GIDC had incurred losses of Rs 1.2 crore by leasing premises at Patto, Panaji, which were not being fully utilised. Originally signed in January 2024 at Rs 5.7 lakh monthly rent plus taxes and maintenance, the lease rent was later revised to Rs 7.6 lakh from June 2024. Under the latest terms, effective April 1, 2025, the rent has jumped to Rs 14.43 lakh per month.

According to official records, the lease was first approved in November 2023 for three years. It was then extended via a board resolution in December 2024, prompting the lessor to demand a security deposit equivalent to 11 months’ rent. The GIDC board approved the revised terms in April 2025, stating that the additional deposit will be covered under its 2025-26 administrative budget.

The CAG had criticised the GIDC for immediately accepting an unsolicited offer at over four times the market rate and noted several procedural lapses, including the absence of a formal handover record and documentation on the premises’ condition. The corporation had also spent Rs 77 lakh on interior works before moving in by September 2024.

Despite the audit objections, GIDC has proceeded with the extended lease, drawing further attention to the financial and procedural irregularities highlighted by the state’s top auditor.