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Licence fee of govt houses not revised, Chandigarh loses 12 cr: Audit

House allotment committee in Sector 18, Chandigarh, houses to the government employees under the rules of Government Residences (Chandigarh Administration General Pool) Allotment Rules, 1996

Updated on: Oct 24, 2024, 09:30:10 IST
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The Director General of Audit (Central), Chandigarh, has pointed out several discrepancies in the functioning of the house allotment committee (HAC) in Sector 18, Chandigarh.

The audit report highlighted that the central government has been revising its rates from time to time for its general pool residential accommodation. (HT File)
The audit report highlighted that the central government has been revising its rates from time to time for its general pool residential accommodation. (HT File)

The committee allots government houses to the government employees under the rules of Government Residences (Chandigarh Administration General Pool) Allotment Rules, 1996. There are about 14,000 government houses in different categories.

In its audit report conducted for the year 2018-19 to 2023, it has been pointed out that UT administration has suffered a loss of nearly 12.33 crore due to the non-revision of rates of licence fees of the government accommodation in the city. The licence fee has to be revised every three years, but the UT administration has been recovering the license fee at the rates last revised in January 2009, and thereafter, no revision of rates of license fee took place.

The audit report highlighted that the central government has been revising its rates from time to time for its general pool residential accommodation. The revision of licence fee rates was done by the central government with effect from July 1, 2020, over the rates previously revised from July 1, 2017. An average increase ranging from 18 to 20 percent was made from July 1, 2020, in respect of various categories of accommodations.

During the audit, it was observed that the UT administration had neither framed any policy for the revision of licence fees nor followed the Centre’s pattern for the revision of licence fee rates. Had the UT administration revised its licence fee rates on the pattern of the Centre, it could have yielded additional revenue amounting to 12.33 crore.

The audit reports that loss on account of under-recovery of licence fees from January 2012 to September 2023 is calculated on the average 11,920 of occupied houses as of October 10, 2023. “This has resulted in the loss of 12.33 crore on account of non-revision of license fee,” stated the report.

RTI activist RK Garg, who obtained the report under the RTI Act, said, “The house allotment department that maintains the largest number of government houses has found serious irregularities in the report. UT administration should manage this department very seriously as per rules and orders laid by central as well as UT administration.”

No survey from 2019-20 to 2022-23

The report pointed out that no survey or inspection was carried out during 2019-20 and 2022-23. However, as per the reply, a survey/inspection was carried out during 2018-19, but no such survey/inspection report was furnished to the audit.

In view of not carrying out any survey or inspection of government houses by the committee, violation of sublets the residence, erection of any unauthorised structure, uses the residence or any portion thereof for any purpose other than that for which it is meant or tampers with the electric or water connections, etc by the allottees cannot be ruled out.

Irregular out-of-turn allotments

The report also pointed out that 42 houses during 2018-19, 74 during 2021-22, and 74 during 2022-23 were allotted out of turn in the public interest/functional requirement. Details of houses allotted in the public interest/functional requirement during 2019-20 and 2020-21 were not produced for the audit.

Further scrutiny of records revealed that the sub-rule (e) of out-of-turn allotment rule 11(1) on functional requirement was struck off given the judgment delivered by the Supreme Court in 2011 but the term was still being used in the allotment of houses on out of irregular turn basis.

Loss of revenue due to vacant houses

The report said 416 houses were vacant as of March 31, 2023, which were still vacant as of date, the period of vacancy of these houses ranging from March 3, 2010, till the end date of the audit. The period of non-allotment and vacancy in respect of certain houses was long, and the reasons thereof were not clear. Apart from these, there were 36 houses under maintenance ranging from May 5, 2017, due to which, these could not be allotted to the employees. Non-allotment of these houses led to the loss of revenue from licence fee charges.

 
ABOUT THE AUTHOR
Hillary Victor

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

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