HP misused PSU loans: CAG
SHIMLA, April 9 — The provisions of the Constitution have been bypassed by the Himachal Pradesh Government to raise loans of over Rs 999 crore through two public sector undertakings to clear its overdrafts and boost the ways and means position.

14 cases of forest smuggling detected
NAHAN, April 9 — Mr Praveen Thaplyal, Conservator of Forests, Nahan Circle, said here yesterday that night patrolling had been intensified in the border areas of Sirmaur district. As many as 14 cases of smuggling of forest produce had been detected by forest officials and nine vehicles were impounded.

TYC denies issuing threats
SHIMLA, April 9 — The Tibetan Youth Congress has denied any hand in the threats issued to office-bearers of the all-India Central Tibetan Schools Staff Welfare Association.

Ex-servicemen's rally on April 11
SHIMLA, April 9 — The sub-area headquarters will organise an ex-servicemen's rally at Jutogh, near here, on April 11.

HP misused PSU loans: CAG
Tribune News Service

SHIMLA, April 9 — The provisions of the Constitution have been bypassed by the Himachal Pradesh Government to raise loans of over Rs 999 crore through two public sector undertakings to clear its overdrafts and boost the ways and means position.

This has been pointed out in the report of the Comptroller and Auditor General of India (CAG) for the year ending March 1998 which was tabled in the Vidhan Sabha today by the Chief Minister, Mr P.K. Dhumal.

The report says that as the state government was heavily indebted to the Centre, it bypassed the provisions of Article 293 of the Constitution of India and raised loans of Rs 909.49 crore through the Himachal Pradesh State Electricity Board (HPSEB) and H.P. State Forest Corporation (HPSFC) to boost its ways and means position.

This included a loan of Rs 453.46 crore through the HPSEB and Rs 456.03 crore through HPSFC.

The CAG pointed out that the matter was referred to the government in December 1998, but no reply has been received. These loans were raised between 1994 to 1998.

A loan of Rs 453.46 crore was raised by the HPSEB by placement of non-statutory liquidity ratio (SLR) bonds during 1994-1997 of these Rs 440 crore were deposited in the government account in April 1997 and had not been refunded to the HPSEB until the time of filing of the report, December 1998.

The report also pointed out that the loans were transferred from one account to the other to tide over a stringent financial position and clear the overdrafts.

This is not the first time that the CAG has pulled up the state government for raising loans. The legislature had not passed any law prescribing a limit on borrowings by the state government.

The discharge of internal debt ranged between 58 and 121 per cent of additions during 1993 to 1998. The burden of interest on other liabilities increased from Rs 60.76 crore in 1993-94 to Rs 91.92 crore in 1997-98.

The CAG has pointed out that in the case of 14 loss making government companies and statutory corporations in which the government invested Rs 224.83 crore upto 1997-98, the accumulated losses amounted to Rs 257.83 crore. In eight of these companies and corporations the accumulated loss was more than the investment.

These include HPMC Agro Industrial Packaging India Ltd, Small Industries and Export Corporation. Nahan Foundry, Handicraft and Handloom Corporation, HRTC, Forest Corporation and Mahila Vikas Nigam.

The government made repayment of Rs 2136.97 crore for principal and interest on internal debt during 1997-98 as against Rs 694.47 crore during the previous year.

The CAG said while assets of the state government grew by 52 per cent over a period of four years from 1995 the liabilities grew by 117 per cent. Until 1994-95 the assets of the government were more than the liabilities. But from 1995-96 liabilities overtook the assets. This was mainly attributed to the increased revenue deficit.

The report said that the government's claim of 100 per cent achievement of targets in helping families below the poverty line was not reliable. Of the 47 approved schemes only 15 were implemented 41 unapproved schemes were implemented at a cost of Rs 15.56 crore out of the total available funds of Rs 32.95 crore.

The residence of the commissioner of Shimla Municipal Corporation was renovated at a cost of Rs 28.80 lakhs against the original estimate of Rs 8.38 lakh. The estimates were split to bypass approval of the competent authority.

The report has pointed out that the helicopter hired by the state government was used by the then chief minister during December 16, 1997 to January 4, 1998 despite announcement of the Lok Sabha elections. This involved an unauthorised expenditure of Rs 50.66 lakh due to non-compliance of the instructions of the Election Commission.

It has been pointed out that the state government created three posts of additional Director General of Police (ex-cadre) with approval of the Centre. These posts were made functional from April 1993 and an expenditure of Rs 28.62 lakh incurred on pay and allowances of incumbents. The subordinate staff required with these posts had neither been created nor sanctioned as of August 1998.

Funds to the tune of Rs 86 crore for paying payment arrears due to increase in the wages of daily paid workers engaged by the PWD and IPH Department were withdrawn then later deposited in the post office savings account. Subsequently, various transactions were made to help the ways and means position between June 1996 to September 1996.

The CAG has taken strong note of an amount of Rs 5.95 crore having been earmarked in the budget in violation of the budget manual for vacant posts in the police during 1995 to 1998.

An expenditure of Rs 60.20 lakh was made on 41 water carriers who continued to be engaged in the offices of superintendents of police at Kinnaur, Shimla, Kulu, Solan and Police Training School, Daroh, although regular water supply was now available.

The scheme of upgradation and improvement of existing roads to arterial standards at an outlay of Rs 181 crore could not be completed as only Rs 40 crore were allotted of which only Rs 20 crore were actually spent.

The CAG has also pulled up the Departments of Forest, Excise and Sales Tax for having failed to check illicit felling, encroachment on forest land and short falls in recovery of taxes.

The Comptroller and Auditor-General of India (CAG) has pointed out glaring instances of short levy and non-levy of taxes and royalty and large scale tax evasion, resulting in losses amounting to crores of rupees to the state exchequer.

In the report pertaining to revenue receipts of the government for the year ending March 31, 1998 presented in the Vidhan Sabha today most of the cases were of non-recovery and short recovery of royalty by the Forest Department and evasion of sales tax and goods tax. Random checks of records of the Excise and Taxation, Transport Forest and other departments revealed under assessment and short levy of revenue to the tune of Rs 38.92 crore in 747 cases.

Audit of 12 tax barriers revealed that 1,05,792 goods vehicles which carried sand and bajri worth Rs 9.42 crore were allowed to cross the barriers during 1994-95 and 1996-97 without filing declaration forms. As a result Rs 75.43 lakh in sale tax could not be recovered.

Non-enforcement of the condition of tax-exemption by the department to a prestigious cement plant resulted in incorrect tax-exemption amounting to Rs 437.10 lakh.

Central sales tax amounting to Rs 31.82 lakh erroneously collected in 1995-96 by a dealer of Shimla district, was retained and not deposited in government account non-disclosure of sale of photo identity cards worth Rs 487.34 lakh during the period 1994-95 to 1996-97 resulted in evasion of sales tax worth Rs 57.92 lakh, including interest and penalty. Inadmissible deductions on sale of rice and wheat flour claimed by a dealer, who did not qualify for exemptions, led to evasion of tax to the tune of Rs 76.01 lakh.

Failure of the department to enforce the prescribed norms of production of spirit from malt and molasses in a distillery during the years 1995-96 and 1996-97 deprived the government of excise duty amounting to Rs 21.00 lakh.

A review on forest offences revealed that no damage reports were prepared by the department in 98 cases involving illicit felling of 3,099 trees and seizure of 562 nags of timber valued at Rs 123.19 lakh pertaining to ten forest divisions. These cases were detected by flying squad or the Enforcement Department from 1992-93 to 1996-97. In fifteen forest divisions, 3,056 offence cases became time-barred during the years 1992-93 to 1996-97 due to failure of the department to compound these cases or to take them to the courts of law within the prescribed period which not only resulted in offenders going scot free but also a loss of revenue involving Rs 80.58 lakh. In 21 cases of illicit felling noticed in seven forest divisions, the concerned field staff failed to seize timber valued at Rs 50.07 lakh from the offenders.

Forest land measuring 387.308 hectares involving 1,831 trees was encroached upon by offenders in sixteen forest divisions during the years 1992-93 to 1996-97.

Interest and penalty amounting to Rs 25.39 lakh leviable on belated payments of royalty and sales tax were not demanded by the department from the state forest corporation in four divisions.

Application of incorrect rates of sales tax on timber resulted in short recovery of sales tax of Rs 25.17 lakh in two divisions and in five others royalty of Rs 17.62 lakh was recovered short due to incorrect application of volume of trees. Besides, royalty and sales tax of Rs 11.16 lakh on fit trees were recovered short in one division.

14 cases of forest smuggling detected
From Our Corespondent

NAHAN, April 9 — Mr Praveen Thaplyal, Conservator of Forests, Nahan Circle, said here yesterday that night patrolling had been intensified in the border areas of Sirmaur district. As many as 14 cases of smuggling of forest produce had been detected by forest officials and nine vehicles were impounded.

Mr Thaplyal said on sensitive routes three temporary checkposts had been set up. During a four -month night patrolling drive six trucks and two tractor-trailers carrying approximately 110 quintals of khair wood, 40 logs of sal, 30.40 quintals of cedar oil, 15 logs of mahoowa and seven quintals of sal fuelled were impounded. Four vehicles have been impounded by the department and the cases are under trial in the Court of Authorised Officers.

In five cases FIRs have been lodged with the police and the department has realised a sum of over Rs 1.68 lakh as fines from offenders.

He said four checkposts in border areas had been equipped with wireless sets. Two protection vans with 10 persons and a tac-phone had been provided for night patrolling and for reporting fire incidences in the district.

Night patrolling would be further intensified in the sensitive routes and in the border areas. Under the new forestry scheme, Tanjhi Van Yojna and Village Forest Development Societies had been created and were being mobilised with the assistance of panchayats to protect forest wealth.

Bill to try finance cos introduced
Tribune News Service

SHIMLA, April 9 — The Himachal Chief Minister, Mr Prem Kumar Dhumal, today introduced a Bill in the Vidhan Sabha to protect deposits made by the public in non-banking finance companies.

The Bill provides for setting up of special courts to try the defaulting companies who fail to pay the depositors. It also provides for appointment of special public prosecutors, freezing of accounts and attachment of the property of defaulter companies.

Those violating the provisions of the Bill could be sentenced to imprisonment up to 10 years and a fine of Rs 1 lakh.

Mr Krishan Kapoor, Transport Minister, introduced a Bill to amend the Himachal Pradesh Motor Vehicles Taxation Act. The Bill provides for the imposition of a minimum special road tax on vehicles engaged in carriage of trade and passengers.

Earlier, during question hour Mr R.L. Markanda, Rural Development Minister, Mrs Asha Kumari said the government had issued orders to suspend the panchayat resolution vide which a portion of the panchayat ghar of Khajjiar in Chamba district was given to Mrs Darshana Devi at a rent of Rs 200 per month for running a hotel. He said procedure was not followed while renting out the panchayat ghar. He said so far the matter had been discussed informally.

Mr Roop Singh, Forest Minister, told the House so far, the services of 1,911 workers had been regularised in the department and the Cabinet had approved posts for regularisation of services of 613 more workers.

In a suo motu statement, the Chief Minister informed the House that the Centre had agreed to send one unit of the ITBP for deployment in the militancy-affected Chamba district in place of the CRPF company which was withdrawn and placed at the disposal of the Bihar Government.

He also informed the government had decided to constitute a committee to review the proposal to examine various provisions of the proposed state cooperative societies Bill before its introduction in the House.

The committee would be headed by the Minister of State for Cooperation.

TYC denies issuing threats
Tribune News Service

SHIMLA, April 9 — The Tibetan Youth Congress (TYC) has denied any hand in the threats issued to office-bearers of the all-India Central Tibetan Schools Staff Welfare Association.

Ms Dolma Choephel, Organisational Secretary of the Congress, said no letter had been despatched from the office of the TYC on April 5 as mentioned by the association.

It may be recalled that the office-bearers of the association here received unsigned letter written in the name of the TYC threatening them with dire consequences for indulging in anti-Tibetan activities.

Ex-servicemen's rally on April 11
Tribune News Service

SHIMLA, April 9 — The sub-area headquarters will organise an ex-servicemen's rally at Jutogh, near here, on April 11.

A spokesman of the Army said a medical camp and a recruitment rally would also be held on the occasion.

Free bus service for the rally would be available from Kotkhai, Ganna-Hatti, Theog and other parts of the district, he added.