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Chandigarh estate office caused ₹18 cr loss to exchequer

The Comptroller and Auditor General (CAG) of India’s report revealed that the estate office had failed to keep records of government receipts and dues of ground rent. Besides, the cash books and service books were also not in order.

Updated on: Apr 19, 2023, 04:37:30 IST
By , Chandigarh
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Pointing to irregularities in the functioning of the UT Estate Office, Sector-17, the Comptroller and Auditor General (CAG) of India revealed that the department had caused a loss of about 18 crore to the government exchequer in the financial year 2021-2022.

Pointing to irregularities in the functioning of the UT Estate Office, Sector-17, the Comptroller and Auditor General (CAG) of India revealed that the department had caused a loss of about  ₹18 crore to the government exchequer in the financial year 2021-2022. (HT File)
Pointing to irregularities in the functioning of the UT Estate Office, Sector-17, the Comptroller and Auditor General (CAG) of India revealed that the department had caused a loss of about ₹18 crore to the government exchequer in the financial year 2021-2022. (HT File)

The report revealed that the estate office had failed to keep records of government receipts and dues of ground rent. Besides, the cash books and service books were also not in order.

Non-recovery of ground rent, GST from petrol pump sites

The CAG report revealed that the estate office failed to recover ground rent and goods and services tax (GST) from 13 petrol pumps and LPG sites which caused a loss of 7.22 crore to the exchequer.

4.58 crore lost owing to lackadaisical approach

The audit also revealed that about 4.58 crore was lost due to the lackadaisical approach of the officials. In 2018, the sub-divisional magistrate (SDM, South) had issued a show-cause notice over a building violation under his jurisdiction and directed the assistant estate officer (AEO) and SDO (building) to remove the encroachment. But the department concerned failed to remove the violation and did not even raise the demand for violation charges, which ran into 4.48 crore. As per the Chandigarh Estate Rules, 2007, when a building violation and/or misuse of a site or building comes to the notice of the estate office, 15 days’ notice is issued to the allottee. The lessee is given two months to remove the violations, failing which penal charges at the prescribed rate per square feet are levied.

Excess contractual manpower cost UT 3.55 crore

The audit report also found that in 2021-22, UT hired at least 35 more contractual employees than the sanctioned strength that caused a loss of 3.55 crore to the government exchequer. As per rule 1.3.4 of the manual for procurement of consultancy and other services 2017, ‘outsourcing of services’ implies the deployment of outside agencies on sustained long-term (for a year or more) for services which were traditionally being done in-house.

1.11 crore not recovered from motor booths

The UT estate office failed to recover an outstanding amount of 1.11 crore from various motor booths in the city. During the audit, it was found that the said amount was to be recovered on account of ground rent/service tax/GST and interest in respect of various allottees.

‘Bring more transparency’

RK Garg, the president of Second Innings’ Association, a senior citizens body, who had filed an RTI for the CAG report, said, “The officials concerned should act more responsibly. After all, this is public money and should be used judiciously. Senior officers should make sure the system is more transparent and should work as per the parameters laid by the watchdog authority.”

  • Hillary Victor
    ABOUT THE AUTHOR
    Hillary Victor

    Hillary Victor is a Special Correspondent at Chandigarh. He covers Chandigarh administration, municipal corporation and all political parties.