I don't think this is a violation per '99 Code, but in '02 - 406.4 "Receptacle Mounting. Receptacles shall be mounted in boxes or assemblies designed for the purpose, and such boxes or assemblies shall be securely fastened in place."
404.3 "Enclosure. (A)" Basically says the same for switches ("listed for the intended use").
This town's still going under '96 Code, so I guess it's OK.
but still, this guy used a die grinder on these holes...T&M maybe??