BEML draws CAG flak for overstatement of revenue in Tatra sale
Defence PSU BEML on Thursday drew flak from the CAG for "overstatement" of revenue and profits from sale of Tatra trucks, which are in controversy after army chief Gen VK Singh's claimed that he was offered a bribe to clear the procurement of these vehicles.delhi Updated: May 10, 2012 19:59 IST
Defence PSU BEML on Thursday drew flak from the CAG for "overstatement" of revenue and profits from sale of Tatra trucks, which are in controversy after army chief Gen VK Singh's claimed that he was offered a bribe to clear the procurement of these vehicles.
"Overstatement of revenue due to incorrect recognition of sales in the accounts for the year ended 31 March 2010 was commented earlier by the Comptroller and Auditor General.
"The company continued the incorrect practice in the year 2010-11 also and recognised sales of Rs 246.52 crore in respect of 306 Tatra vehicles based on offer of vehicles for inspection.... This resulted in overstatement of sales by Rs 246.52 crore and profit by Rs 25.31 crore," the CAG said in its report tabled on Thursday.
The government auditor stated that the amount was shown as Rs 244.89 crore in the Notes of the Accounts instead of Rs 246.52 crore.
It said the "non-compliance" was not reported in the Auditor's Report though the attention was drawn to the same.
Indian armed forces have been procuring the Tatra trucks through BEML, which assembles them in its facilities here.
The Tatra trucks deal landed in controversy after the Army Chief's allegations prompting the Defence Ministry to recommend a CBI inquiry into their acquisition.
Between 1986 and 2012, India has procured nearly 6,500 vehicles from Tatra of which 2,950 were procured between 1999 to 2002 by the Army under special circumstances after the Kargil war and Operation Parakram.