New Delhi, August 26
The Comptroller and Auditor General of India has rapped the Punjab Government for misappropriating Rs 934.53 crore collected as rural development cess during 2001-05.
The findings of the CAG has come at an inappropriate time for the Congress-led Amarinder Singh government in Punjab as the Assembly elections in the state are due to be held in February next year.
“Audit found no evidence to indicate that the amount collected as rural development cess was utilised for the specified purpose,” the CAG observed.
The amount collected as cess was to be spent mainly for the construction of godowns for agricultural produce brought into the market, rural roads, rest houses for dealers and purchasers, and arrangements for drinking water and sanitation. The fund was also to be spent for providing better agricultural facilities for higher production and the grant of relief for loss and damage to agricultural produce due to natural calamities.
The CAG said during 2001-02 in the state 1,653 mandis were operated by the Mandi Board and no new mandis were opened up to 2004-05. It said 101 katchi mandis (mandis without the requisite infrastructure) were being operated continuously for five years ending 2004-05.
Drought relief for Punjab amounting to Rs 340.57 crore for the kharif season 2002-03 at the rate of Rs 200 per MT and rabi season 2003-04 at the rate of Rs 100 per MT was borne by the Centre and the cess was not utilised for this purpose.
The report tabled in Parliament said the FCI maintained that far flung mandis (which were devoid of basic infrastructure like plastered flooring, sheds, water and electricity) were generally alloted to it by the state government.
In view of the non-provision of required facilities in the mandis, the Centre stipulated that the final payment of the market fee and the rural development cess would be subject to utilisation certificate (UC) to the effect that the amount was actually utilised for the purpose for which it was collected.
“However, it was noted in audit that payments continued to be made regularly without obtaining the UCs,” the report said.
The CAG said the statutory charges in respect of wheat were the highest in Punjab and Haryana. The two states contributed 82 to 89 per cent of the total wheat procurement for the central pool during 2000-5. These charges ranged from 10.5 per cent and 11.5 per cent of the total cost of wheat procured and included market fee and rural development cess each at the rate of 2 per cent.
