Rs 3.7-lakh fraud detected in Karnal Red Cross Society
The Comptroller and Auditor General (CAG) of India has detected an embezzlement of over Rs 3.76 lakh in Red Cross Society, Karnal, due to the non-observance of the provisions of financial ruleschandigarh Updated: Feb 26, 2012 14:43 IST
The Comptroller and Auditor General (CAG) of India has detected an embezzlement of over Rs 3.76 lakh in Red Cross Society, Karnal, due to the non-observance of the provisions of financial rules regarding the receipts and deposit of service charges levied for issuance of registration certificates of land deeds.
In its report, which has been tabled in the ongoing budget session of the Haryana Vidhan Sabha, the CAG held that the state government had in contravention of the provisions of the constitution of the Indian Red Cross Society, decided in October 2000 to implement the Haryana Registrations Information System through the District Red Cross Societies (DRCS).
Accordingly, the work of computersation of land records and issuance of registration certificates of different types of deeds under the system was entrusted to the DRCS. Service charges at the rate of Rs 200, Rs 150 and Rs 100 in addition to the fees fixed by the government for the same services through the revenue department were fixed for issuance of registration certificates of different types of deeds.
The CAG report held that the DRCS were required to collect the service charges and issue receipts in duplicate to the bank concerned on the same day or the next day and maintain district and tehsil-wise detailed records of service charges collected on daily, monthly and yearly basis.
Scrutiny of records of the DRCS, Karnal, in December 2010 revealed that the registry clerks of tehsils, collecting service charges on behalf of the society from public, were depositing the amount with the cashier of the DRCS either themselves or through data entry operators (DEOs).
Details of the amounts collected during a month were never called for by the DRCS from the tehsils to ensure that amounts of service charges collected from public tallied with the amounts deposited by the registry clerks or DEOs, the report said.
It was also not ensured as to whether the entire money collected by the registry clerks or DEOs was deposited with the cashier or not. Comparison of service charges collected in the test check of two tehsils – Assandh and Nissing – from 2001-02 to November 2010, revealed that against over Rs 67.4 lakh collected, only Rs 63.6 lakh was deposited with the DRCS.
The shortage of R3.76 lakh tantamount to embezzlement by registry clerks or DEOs, the report stated. On being pointed out, DRCS secretary, Karnal, while admitting the facts, had stated in April 2011 that the defaulting officials had deposited Rs 2.23 lakh while the balance amount of Rs 1.52 was yet to be recovered.
The matter was also referred to financial commissioner, social justice and empowerment department in May 2011. The reply had not been received till August 2011, the report added.