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Unrecovered fancy number fee cost Chandigarh RLA ₹67 lakh: Audit

Checking the RLA records for the period 2022-23, the audit team noticed that the choice number was allotted to the bidder but only the reserve amount for the same was deposited and balance amount is still remaining

Updated on: Jun 15, 2024, 09:52:02 IST
By , Chandigarh
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The Registration and Licensing Authority (RLA) suffered a loss of 67 lakh due to non-recovery of special/fancy registration number fee allotted through e-auction along with interest and penalty, the audit report of the principal director of audit (Central) has revealed.

The audit report pointed out that non-provision of clause regarding timeline fixed for release of special/fancy number in relevant Act has resulted not only in the blockade of special/fancy numbers to the general public but also resulted in loss of revenue amounting to  ₹67.15 lakh. (HT Fie Photo)
The audit report pointed out that non-provision of clause regarding timeline fixed for release of special/fancy number in relevant Act has resulted not only in the blockade of special/fancy numbers to the general public but also resulted in loss of revenue amounting to ₹67.15 lakh. (HT Fie Photo)

Checking the RLA records for the period 2022-23, the audit team noticed that the choice number were allotted to the bidders but only the reserve amount for the same was deposited and balance amount is still remaining.The range of delay was between 365 days to 619 days, beyond the stipulated period of time in contravention of the rule ibid, which has resulted into loss of revenue to the government.

The audit report pointed out that non-provision of clause regarding timeline fixed for release of special/fancy number in relevant Act has resulted not only in the blockade of special/fancy numbers to the general public but also resulted in loss of revenue amounting to 67.15 lakh.

The department in its reply reasoned that the matter is under active consideration for amending terms and conditions of e-auction.

The reserve price of the non-transport vehicles has been fixed by the Chandigarh administration against each special number. The owner of a vehicle will be allowed to purchase registration number of choice through e-auciton if he/she has purchased the vehicle at Chandigarh address only.

As per terms and conditions of online/e-auction, the successful bidder has to get the vehicle registered as well as deposit the balance bidding amount within one month from the date of auction failing which penalty at 10% per annum as well as the interest at normal rates (10% annum) on the balance amount would be charged till the date of payment. If after auction, the highest bidder is unable to take the number due to any reason, the amount deposited by him shall be forfeited.

RTI activist RK Garg who procured report through RTI, said the authority failed to recover the amount, which was loss to the department. The responsibility of the officials should be fixed, he said.

Along with this, the audit department also found in its inspection that there were discrepancies in the renewal of trade certificates. These trade certificates are issued to dealers selling vehicles. According to the audit department, it was observed that out of 53 trade certificates, 20 were such that they were renewed with delay.

‘Registration certificates issued with delay’

Many people were issued registration certificates (RCs) late, the audit report further reveals. In some cases, RC has been issued for vehicle registration even after 65 to 249 days. According to rules, RC should be issued within 10 days of submission of the file. More than 100 objections of the audit department are pending in the previous years.

The audit department has also objected to the appointment of contractual employees who issue RCs posted in the RLA department.

According to the department, the staff here is deployed on behalf of the Indian Red Cross Society. From 2015 to 2023, the administration has released an amount of 15.48 crore for the work of issuing RC of the society. No salary is paid to the Indian Red Cross Society for the employees posted by the department.

  • 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.