NOIDA, Aug. 21 -- The Comptroller and Auditor General of India (CAG), in its performance audit of the Greater Noida Industrial Development Authority (GNIDA) titled"Internal Control in Chapter VI report" has flagged "weak internal controls" that led to irregular land allotments, rampant encroachments on government land, diversion of funds beyond its legal mandate, and a systemic failure to maintain transparency and accountability.

The audit report said the authority had strayed from its founding mandate of promoting industrial development, functioning instead like a housing authority. "The authority shifted its focus from industrial development to residential projects. Even the much-hyped Sports City project was diluted into a housing sch...