CAG Report No. 11 of 2025 — Implementation of Smart City Mission, Government of Karnataka

Implementation of Projects and Monitoring
51
Sl.
No.
Sub Project description Amount
in crore
(excluding
GST)
Date of
Award
Name of the Agency
2. Area development at
Tannirbhavi
7.79 05.05.2022 M/s S4 Engineering and
Construction
3 Area development at Sultan
battery
12.90 05.05.2022 Mr. Suresh Shetty
4. Pedestrian sea river link bridge at
Sultan battery
34.16 05.05.2022 M/s Mugrody
Construction
5.
Upgradation existing water jetty 9.92 05.05.2022 M/s Govardhan and
Company, Dakshina
Kannada.
6. Open air theatre and water sports
park at Nayakudru
41.93 29.04.2022 M/s RK Infra India Pvt Ltd
Total 156.87
Source: Information furnished by Smart Cities
Audit observed the following:
The said works were awarded without having the possession of land / obtaining
statutory clearance from Port Authority / Karnataka State Coastal Zone
Management Authority.
• The work of waterfront area development taken up in five phases is yet
to be completed even after lapse of two years because the length of 2.1
km from Nethravathi bridge to Bolar Sea phase has not been made
available by the port authority.
• The work of the Tannirbhavi area development under convergence
project with Blue Flag Beach department is yet to be completed.
Further, there is no written agreement between MSCL and Blue Flag
Beach department/ Tourism department regarding sharing of revenue
generated through the commercial activities to be carried out on
completion of the project.
• The work of area development of Sulthan Bathery was approved by
State Coastal Regulation Zone Committee in December-2022. However,
even after lapse of more than one and half years there is no physical
progress due to resistance from the local people in execution of the
development works.
• Works of Upgradation of existing water jetty has been dropped. The
construction of Pedestrian Sea River link bridge at Sulthan Bathery is
yet to be taken up by contractor due to non-receipt of statutory
clearance/approval from the District Coastal Regulation Zone Authority.
• The execution of the work of open-air theatre and water Sports Park at
Nayar Kudru has been dropped as MSCL was not able to obtain statutory
clearance from Karnataka State Coastal Zone Management
Authority/District Coastal Regulation zone. The proposal for dropping