SHILLONG: The Comptroller and Auditor General of India (CAG) observed there was no system in place in the Mining Department to cross verify and reconcile the data of the mining check gates with the records of the land Custom Stations (LCS).
The CAG found Borsora LCS recorded export of 6.29 lakh metric tonnes of coal as per the records pertaining to export of minerals to Bangladesh between April 2014 and March 2016.
However, cross verification with the records of Director of Mineral Resources (DMR) revealed that during the same period, 2.58 lakh MT of coal was exported to Bangladesh through the mining check gate located at Borsora.
The Divisional Mining Officer (DMO), Williamnagar, the CAG observed that 0.82 lakh MT of coal was exported to Bangladesh through three mining check gates, i.e. Gasuapara, Dalu and Baghmara, between April 2014 and May 2015 and no coal export was recorded thereafter till March 2016.
However, the CAG cross-checked the records of three Land Custom Stations (LCS) at the same locations and it was revealed that during the period from April 2014 to March 2016, 2.16 lakh MT of coal was exported to Bangladesh.
With the laxity in cross-verification by the Mining Department on the mining check gates with that of the LCS, it has led to under-reporting of export of 5.50 lakh MT of coal to Bangladesh by the mining check gates.
This has resulted in short realization of royalty amounting to Rs 37.13 crore on which penalty of Rs 9.28 crore was additionally leviable from exporters.
“The government may establish a mechanism to obtain information periodically from Customs Department, so that it may act as an effective internal control to keep instances of under-reporting in check,” the CAG report said.
The case was reported to the Mining & Geology Department, between August 2016 and May 2017 and reminded in July 2017 and January 2018 but the reply is awaited.
Under-reporting of limestone
On the Forest and Environment Department, the CAG during its audit observed that between April 2012 and March 2017, four forest check-gates, i.e. Umkiang, Dawki, Shella Bazaar and Bholaganj, recorded transport of 18.73 lakh MT of limestone.
The CAG pointed out in the absence of suitable control and monitoring mechanism, the four forest check-gates under-reported transportation of 142.29 lakh MT of limestone which resulted in loss of revenue to the tune of Rs 99.49 crore.
The audit was cross-verified with the data of check gates belonging to Mining Department and Customs Department, situated in the same locations as the forest check-gates which revealed that during the same period, 163.22 MT of limestone was transported through check-gates.
The mining check-gate record in case of Umkiang was 2.01 lakh MT and customs check-gate in case of Dawki, Bholaganj and Shella Bazaar was 161.21 lakh MT.
“The Department needs to obtain information periodically from other departmental check-gates to keep the instances of under-reporting in check. Additionally, the government may also consider setting up of integrated check-gates for taxation, forest, mining, transport department etc,” the CAG said.
The Department of Forest and Environment while accepting the audit observation stated that the issue of under-reporting was being pursued.
