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CAG exposes loss, embezzlement of government funds in Uttar Pradesh

A CAG report has exposed the embezzlement of funds of several entities of Uttar Pradesh government including the Jal Nigam and Housing Development Council. The report also questioned the arbitrary manner in which various Development Authorities have worked in the state.

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Published : Aug 23, 2020, 8:03 PM IST

CAG exposes loss, embezzlement government funds in Uttar Pradesh
CAG exposes loss, embezzlement government funds in Uttar Pradesh

Lucknow:The Comptroller and Auditor General (CAG) of India in its report has exposed the loss and embezzlement of crores of rupees in different entities of Uttar Pradesh government. Among these are Development Authorities, Jal Nigam, Housing Development Council and other such departments, which are in the dock for arbitrarily making payments.

The CAG report, which was tabled in the Vidhan Sabha during its just-concluded session, has highlighted the loss and embezzlement of public funds to the tune of Rs 930.78 crore, pertaining to 135 matters, which were disposed of questionably. The action in these matters was pending till March 31, 2019. FIR was registered in 101 matters and the investigation started in 72 matters, but these could not be taken to their logical conclusion.

The CAG report has questioned the arbitrary manner in which various Development Authorities have worked in Uttar Pradesh. According to the CAG report, Meerut Development Authority (MDA) acted arbitrarily in the allotment of 17 plots, which included nine commercial and eight residential plots.

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This helped MDA to earn Rs 14.28 crore, but the Development Authority did not levy the establishment surcharge at the rate of 10 per cent, which caused a huge loss of Rs 9.43 crore to the authority. Similarly, the Ghaziabad Development Authority (GDA) did not collect Rs 70.51 crore for the development of basic facilities from the allottees without giving any justification.

In the report, the Comptroller and Auditor General has also questioned the arbitrariness of the Jal Nigam. It has been stated in the report that the payment was made arbitrarily and the authorities of Jal Nigam did not check all this. For sewage works in Bijnor, the Jal Nigam made payment at higher rates under different heads, which resulted in a loss of Rs 4.05 crore. Similarly, the report has exposed how a contractor was made to make a profit of Rs 4.09 crore in Banda.

The CAG report has brought forth the gross negligence of officers in the Housing Development Council. Due to the negligence of the Housing Development Council, the project in Ghaziabad was delayed. As a result of which, a compensation of Rs 11.38 crore was to be paid.

The CAG in its report has raised objections on this as well. The bigger question, which remains unanswered, is that the authorities concerned did not fix the responsibility in this regard. Similarly, Awas Vikas Parishad suffered a loss of Rs 2 crore for incorrect determination of the reserve price for the auction of plots.

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