Audit finds Rs 36.7 cr embezzled in ULBs, panchayat bodies

A large number of cases of embezzlement or misappropriation or likely cases of misappropriation involving Rs 36.78 crore have been detected in the urban local bodies (ULBs) and panchayati raj institutions (PRIs) of Haryana, according to the audit reports of the Local Audit Department.

The reports, which were tabled before the House on November 17, revealed that cases of misappropriation or likely cases of misappropriation involving Rs 26.45 crore were found in 2018-19 and Rs 1.15 crore in 2019-20 in 10 municipal corporations, 18 municipal councils, and 52 municipal Committees.

In 2018-19, it was found that in the Jhajjar Municipal Committee, the interest of Rs 22.03 crore from 2014 to 2019, was transferred from a VAT grant account to the account of the Secretary, MC, Jhajjar, in violations of government instructions. Also, Rs 45.14 lakh income of the house tax branch in Municipal Corporation, Rohtak, was not deposited within time and kept in hand from two to 16 days. Similarly, Rs 90.70 lakh related to miscellaneous income was received in the cashbook but not taken in the passbook from 2011 to 2019 in the Panipat MC.

In 2018-19, there were short recoveries or non-recoveries and a revenue loss of Rs 22.92 crore while Rs 865.66 crore was less realised than the fixed target. "This reflects that either the budgeted targets were not realistic or there was a lack of proper efforts in achieving the budgeted targets of income," said the report for 2018-19. There were multiple cuttings or overwritings, additions, alterations, etc. on the computerised formats related to house tax recoveries, said the report.

In 2019-20, there were short recoveries or non-recoveries and a revenue loss of Rs 26.37 crore while Rs 2,179.19 crore were less realised than the fixed targets, said the report.

In case of PRIs, it was no different. In 2018-19, an embezzlement or misappropriation of Rs 5.45 crore across 1,425 gram panchayats was found that included Rs 4.24 crore being not handed over by ex-sarpanches to their successors. Other cases included the closing balance of cash books at the end of each month being either wrongly worked out or less carried forward to the next month and income realized was either not accounted or less accounted in the cash books.

In 2019-20, embezzlements or misappropriation worth Rs 3.33 crore was revealed in gram panchayats. It included Rs 2.83 crore that was either not handed over or less handed over by ex-sarpanches while giving charge to the new ones.

“Expenditure was incurred on the carriage of material though the purchases of material for which carriage was paid could not be pointed out. Such payments apparently did not appear to be genuine,” said the audit report.

An embezzlement of Rs 26.93 lakh was found across 126 Panchayat samities in 2019-20 and Rs 14.68 lakh in 2018-19.