NBCC Land Scam

In the year 2009, when Arup Rao Choudhury (presently heading NTPC) was the CMD of National Building Construction Corporation Ltd (NBCC), a CPSU of the urban development ministry, the company bought 42.499 acres of land in Gurgaon for development as residential complexes for sales to private persons. The land was bought from private property dealers.

The land price that NBCC paid to the private property dealers took into account Rs 90 lakh per acre cash payment in the basic cost of the land, besides considering Rs 45 lakh per acre as “liaisoning expense”. This is revealed when the company sought a formal assistance from the Income Tax Department on the correct valuation of the land (see table at pg 32 & 33).