No nod for CAG audit yet from state: Ghaziabad authority

GDA officials said they are abiding by the state government’s order which has not given them a go ahead to get their accounts audited

The officials of the Ghaziabad development authority (GDA) said they are abiding by the state government’s order which has not given them a go ahead to get their accounts audited by the Comptroller & Auditor General of India (CAG).

The GDA has said that it will not allow a CAG audit until a decision is taken by the state government. (Sakib Ali/HT Photo)

The response comes in the wake of reports that UP governor Ram Naik has written to the prime minister and the President about state refusing to have a CAG audit of the GDA.

Senior officials said the authority does not receive any funds from the consolidated funds of the state or from the centre, and, hence, it was not under any compulsion to get its accounts audited by CAG.

“The authority generates its own revenue and pays for expenditure from the same revenue. We do not receive funds from the state government or the centre. The denial of audit is in compliance of a UP government order. Once the state government issues an order allowing an audit, we have no objections. There is already a regular internal audit of our accounts and an annual audit is also done,” said Vijay Kumar Yadav, vice-chairman, GDA.

Earlier in 2016, a CAG team had started the audit work of GDA. But later, they were stopped citing a government order issued in June. The order by UP principal secretary Sadakant said there have been no directions by the state government for an audit by CAG office.

Official sources said there is already a team from the UP auditor general’s office which is regularly undertaking audit procedures and project files are sent to them. Further, the report by the audit team is sent to a committee of Vidhan Parishad which monitors and reviews shortcomings.

There is another bone of contention that the authority received funds from the consolidated fund of the state which includes an additional 2% stamp duty and is spending the same on the directions of the state government for infrastructure projects, area development, etc., and thus falls under the CAG audit ambit.

However, the officials of the authority said IDF received from the state government is only a part of GDA’s funds. It receives this on account of property registration (2% over the stamp duty amount) and is sent to the state government. The state government then releases the IDF funds in proportion to respective local agencies for infrastructure needs.