Audit flags ‘irregularities’ in utilisation of Chandigarh Bird Park funds

Chandigarh, December 20

A report of the Director General of Audit (Central) has sought an explanation from the Forest Department over the formation of the Forest Society for Conservation.

The audit report observed the department had set up Chandigarh Bird Park in 2021-22 at a cost of Rs 5 crore and the same was opened for public in November 2022.

Rs 3.57 cr entry fee collected, retained

• Chandigarh Bird Park, set up for Rs 5 cr, opened for public in Nov 2022
• Forest Dept set up Forest Society for Conservation for park’s affairs
• Collected Rs 3.57 cr as entry fee; deposited it into two bank accounts
• As per rules, revenue should be deposited into Consolidated Fund
• Society spent Rs 92.32 lakh from dept funds, Rs 44.43 out of govt budget

It was observed that the department, with the approval of the UT Administrator, created the Forest Society for Conservation the same month. The department collected Rs 3.57 crore as entry fee from the public since the inception of the Bird Park and deposited it into two bank accounts — one in Axis Bank and the other in HDFC Bank — instead of submitting it into the Consolidated Fund of India, in contravention to the Article 266 (1) of the Constitution, which mandates that all government revenues should be deposited into the Consolidated Fund.

Further, it was noticed that the society incurred an expenditure of Rs 92.31 lakh from the society fund, while a sum of Rs 44.43 lakh was incurred from the government budget. Making certain observations, the report asked the department under which head Rs 44.43 lakh was spent from the government budget and explain the reasons and purposes behind the establishment of the society.

The report sought information about specific rules or provisions under which the department was authorised to create a society and retain the society’s income in its account rather than depositing it into the Consolidated Fund.

“Whether any need to rectify this irregularity and transfer of income retained by the society to the appropriate government account was felt? If so, what action has been taken?” asked the report. It also sought a copy of the guidelines that allowed the transfer of government funds to the society’s account instead of the Consolidated Fund.

On being pointed out and reasons called for making an expenditure of Rs 93.31 lakh from the society funds and the authority vide which the budget was allocated to the society, the department stated the reply would be submitted after a detailed examination.