E-Paper
Chandigarh Estate Office failed to recover ₹50-cr dues: Audit
A report by the principal director of audit, Chandigarh, has flagged multiple financial gaps at the Estate Office
The Estate Office failed to recover ₹50-crore dues on various accounts between 2021 and 2023, the principal director of audit, Chandigarh, has flagged in a report.
The Estate Office deals with property matters of the Chandigarh administration. Different types of properties of the administration, including residential, commercial and institutional, are allotted/auctioned by the office.
Records relating to the ownership of these properties are also maintained by different branches of the office that is also tasked with checking misuse/building violations and demolish unplanned structures.
₹35.26 crore not recovered from educational/religious institutions
The report has pointed out that the UT Estate Office allotted different sites to educational/religious institutes and trust bodies from 1968 to 2010 on leasehold and freehold basis.
As per the allotment letter, the licence shall be governed by the provisions of the Capital of Punjab (Development and Regulation) Bill, 1952.
It is the duty of the department concerned to ensure that the receipts and dues of the government are correctly and promptly assessed, collected and duly credited to the consolidated fund. But in 52 cases, an amount of ₹35. 26 crore was not recovered, the report states.
₹5.70 crore licence fee not realised for mobile towers
The audit further found that as per the notification issued in 2015 regarding the “Chandigarh policy on towers for mobile telephone and data services”, a non-refundable licence fee of ₹5 lakh for seven years is to be deposited for each tower within 30 days of the grant of licence and before the commencement of work on the site.
The fee is to be at least doubled every seven years from the date of notification. During the checking of records, it was noticed that permission for the installation of mobile towers on 57 sites was given to various telecom companies. The non-refundable licence fee of ₹10 lakh for each mobile tower became due after seven years, amounting to ₹5.70 crore, that was never recovered.
₹3.55 crore spent to pay excess contractual staff
The report has highlighted that irregular expenditure of salaries to contractual staff hired in the UT Estate Office was more than the sanctioned strength, causing a loss of nearly ₹3.55 crore. It added that the department did not produce the sanctions obtained in support of the contractual staff hired in excess of the sanctioned strength directly or through an outsourcing agency. The department paid wages amounting to ₹3.55 crore to the excess outsourced staff from April 1, 2019, to March 3, 2022.
₹76.40 lakh lost in stamp duty
The report says the UT administration had fixed the stamp duty charges for different types of leasehold/freehold properties. Perusal of records revealed that 33 properties were allotted to different allottees between 1953 and 2006 with the condition to execute the deed of conveyance within six months. But the lease deed of these properties had not been registered/executed till date and the department had also not taken any action, which resulted in non-realisation of stamp duty to the tune of ₹76 lakh.
₹66-lakh loss to government exchequer
The audit further observed loss to the tune of ₹66 lakh to the government exchequer due to unclaimed unearned increase in the value of property. The property pertains to commercial sites at the motor market in Sector 48. As per condition of the allotment letter, the lessee will not be entitled to transfer the site of the building without the prior permission of the Estate Office, such permissions will not be given until the lessee has paid full premium and the rent due under the lease for the site.
The report states that due to the non-finalisation of collector rates, the UT administration suffered a huge loss. It was noticed that 330 sites were allotted since 1954 to different bodies/associations, trusts, religious charitable trusts and educational institutes, but the collector rates of the same had not been finalised even after 70 years, resulting not only in a huge financial loss to the state exchequer but also discomfort/uncertainty for the said institutions.
RK Garg, who obtained the audit report under the RTI Act, said, “The audit observations should be taken seriously to resolve the financial issues at the Estate Office.”
