Jammu, May 10: Persistent delay in taking decisions has led to avoidable loss of Rs 4.20 crore to the state exchequer, reads the latest Comptroller and Auditor General of India report.
 The report mentions three such instances where the state coffers have been made to suffer losses worth corers of rupees, which could have been avoided if authorities would have acted at the right time.
 “In absence of clear (instructions) and timely decision on grant of compensation for 1000 kanals of land acquired for developing Industrial Estate Ompora in Budgam,  the state had to pay Rs 1.58 crore interest on the awarded compensation,” the report said.
 The report said district collection Budgam in 1992 fixed compensation to land owners at Rs 75,000/kanal in Baghi Maidani and Rs 65,000 in Baghi Kushki. “In 1996 he referred the case to the government for approval. The government scaled down the rates to Rs 40,000 in Baghi Maidani and Rs 35, 000 in Baghi Khuski without recording justification,” it said.
 “The land owners approached the court of law in 2000. The district judge Budgam upheld the earlier rates and also entitled the owners for six percent interest,” it said.
 The Industries Department appealed against the judgement of the trial court in May 2001. The high court however upheld the lower court judgment while disposing of the case in 2008.”
 Thus the department had to finally give away Rs 3.85 crore on account of compensation as per the earlier fixed rates, plus Rs1.58 crore interest.
 “Non-recovery of avoidable extra expenditure form defaulting contractors slapped a direct loss of Rs 86 lakh on Power Development Department,” it said.
 On the requisition of Chief Engineer, Electric Maintenance and Rural Electrification, Jammu, the procurement and management wing placed orders for supply of 7,518 steel tubular poles of different sizes with three local firms. The supply order for 5994 poles went to firm A, 762 each to firm B and C.
 The contract stipulated that in case of failure to deliver full or part of the supply, the purchaser will reserve the right to make purchases from some other source at the risk of the defaulting suppliers.  
 “Scrutiny of the records of Electrical Central Store Division in June 2008 showed that the firms A and B supplied only 3,247 and 444 poles against the ordered quantity, while the firm C failed to supply any material at all, thus leaving a gap of 3,827 poles against the ordered quantity. 
 To meet the requirements, the Department between July to December 2008 purchased 3,252 poles (order value of Rs 2.03 crore as per the supply orders placed upon the defaulting firms) from other sources at an enhanced value of Rs 2.89 crore, thereby incurring an avoidable loss of Rs  86 lakh.
 “It was seen in the Audit that the department barring forfeiture of security deposit of Rs 5000 of the B and C firms, had not initiated any action against the defaulters to recover the cost of the risk purchases in accordance with the terms of the supply orders,” he said.
 The SK University of Agricultural Sciences and Technology Jammu incurred a loss of Rs 1.76 crore when it failed to make available required material and drawings to a contractor who had been allotted the construction of veterinary clinic complex at Rs 7.40 crore. The building was to be constructed in two years.
 “The scrutiny of the records of the University revealed that the University delayed the procurement of key material to make available drawings and removal of HT line   over the    construction site in time, thus delaying the completion by 17 months. It was in January 2007 that the Building was completed but at a higher cost of Rs 9.57 crore.

Lastupdate on : Mon, 10 May 2010 21:30:00 Makkah time
Lastupdate on : Mon, 10 May 2010 18:30:00 GMT
Lastupdate on : Tue, 11 May 2010 00:00:00 IST