13 fuel stations, LPG sites owe Chandigarh Rs 7.22 crore: CAG

Dushyant Singh Pundir

Chandigarh, April 18

The UT Estate Office has failed to recover the ground rent, and goods and services tax (GST) in respect of various fuel stations and LPG sites to the tune of Rs 7.22 crore, an audit report of the Comptroller and Auditor General (CAG) of India has revealed.

According to the report, a test check of records of the group 6 branch maintained in the Estate Office for 2021-22 revealed the department had failed to recover ground rent and GST from 13 sites.

The report further pointed out lackadaisical approach on part of the Estate Office causing a revenue loss to the tune of Rs 4.58 crore.

The case pertains to a building violation in the area under the Sub-Divisional Magistrate (SDM)-South, where in 2018, the SDM issued a show-cause notice for building violation and directed the Assistant Estate Officer and SDO (Building) to remove an encroachment, but the department concerned failed to remove the violation and failed to raise the demand of violation charges to tune of Rs 4.58 crore.

As per the Chandigarh Estate Rules-2007, when a building violation or misuse of a site or building comes to the notice of the Estate Office, a 15-day notice is served on the allottee/lessee regarding the violation and a period of two months is given to remove it, failing which penal charges at the prescribed rate per square feet is to be paid every month.

The report also pointed out hiring of excess outsourced manpower against the total sanctioned strength caused a loss of Rs 3.55 crore to the government exchequer.

The Estate Office paid the amount to nearly 35 employees who were deputed in excess. As per rule 1.3.4 of the Manual for Procurement of Consultancy and Other Services-2017, ‘outsourcing of services’ implies deployment of outside agencies on a sustained long term (for one year or more) for the performance of other services which were traditionally being done in-house by employees of ministers/ departments.

Also, the Estate Office failed to recover an outstanding amount of Rs 1.11 crore from various motor booths in the city. During the audit, it was found the amount to be recovered on account of ground rent/service tax/GST and interest in respect of various allottees was outstanding. The booths were allotted in various markets of the city as per the Allotment of Sites on Leasehold Basis to Auto Spare Parts Dealers and Auto Repair Mechanics in Chandigarh, Scheme, 1999.

Other losses to exchequer

• Rs 4.58 cr demand not raised for building violation in area under SDM-South due to lackadaisical approach of Estate Office
• Rs 3.55 crore loss to government exchequer for hiring outsourced manpower in excess of the sanctioned strength
• Rs 1.11 cr outstanding amount not recovered by Estate Office from various motor booths in the city, says CAG report