Saturday, March 15, 2025

CAG finds irregularities worth Rs 113.80 crore

Date:

Share post:

spot_img

SHILLONG, Sep 19: The Comptroller and Auditor General (CAG) test check of records of one unit relating to the Mining and Geology department during 2019-20 has revealed non-realisation/short realisation of revenue and other irregularities involving Rs 113.80 crore in six cases.
According to the report, there was a case of non/short realisation of revenue worth Rs 102.73 crore, two cases of short payment of revenue worth Rs 8.64 crore, one case of loss of revenue worth Rs 38 lakh and two cases of other irregularities worth Rs 2.05 crore.
The department did not furnish any reply to the audit observation and no recovery was intimated in any of the cases during 2019-20.
The report said there were cases having impact of Rs 10.90 crore in terms of short/non-realisation of revenue and loss of revenue.
It said the Divisional Mining Officer (DMO), Jowai failed to realise interest amount of Rs 34.10 lakh from three cement companies – Meghalaya Cements Limited, Dalmia Bharat Cement Limited (including Adhunik Cements) and Star Cements – for belated payment of District Mineral Foundation Fund.
The Meghalaya District Mineral Foundation Rules, 2017, notified on December 8, 2017, provides for the establishment of District Mineral Foundation (DMF) in all mineral-bearing districts of the state.
The objective/purpose for the creation of the DMF is for the interest and benefit of persons and areas affected by mining related operations. Subsequently, the Directorate of Mineral Resources (DMR) issued a circular wherein it was stated that for major minerals other than coal and lignite, the contribution to the DMF from September 17, 2015 would be 30% of royalty for mining leases granted before  January 12, 2015 and 10% of royalty for mining leases granted thereafter.
In addition, it also stated that interest of 15% per annum would be charged from January 1, 2018 if the outstanding dues are not cleared by December 31, 2017.
The scrutiny of records of the DMO, Jowai revealed that during the period from September 17, 2015 to December 31, 2017, three cement companies extracted a total quantity of 50,36,099 MT of limestone for which royalty of Rs 40.29 crore (50,36,099 MT x Rs 80) was paid.
The contribution to the DMF, payable for the limestone extracted during the said period, amounted to Rs 11.32 crore. The cement companies paid the amount belatedly between March 13 and April 11, 2018.
However, the DMO, Jowai did not recover the interest for delayed payments amounting to Rs 34.10 lakh.
The audit further noted that the DMO, Jowai did not even issue a demand notice to the cement companies for payment of interest. Thus, Rs 34.10 lakh remained un-realised from the three companies till date (September 2021), adding the reason for non-realisation of Rs 34.10 lakh from the companies being interest amount for delayed payments of contribution to DMF was not stated by the DMO, Jowai.
The matter was reported to the department (July 2021) and the state government (September 2021). The reply is awaited (March 2022).
Another case was the non-realisation of mineral cess where the DMO, Jowai failed to collect mineral cess amounting to Rs 10.56 crore from cement companies.
According to the report, the test check of records (November 2019) of the DMO, Jowai relating to collection of cess revealed that during the course of excavation for civil foundation work and development of plant site by two cement companies – Green Valley Industries Limited (GVIL) and Goldstone Cements Limited (GCL) – limestone to the tune of 25,93,174 MT was extracted.
The report said the Mining and Geology department allowed GVIL (July 2017) and GCL (May 2018) to utilise the extracted limestone as raw material for the manufacturing of clinker and cement.
The report said the DMO, Jowai had collected Rs 3.68 crore against leviable cess of Rs 15.55 crore from the two cement companies but failed to collect the remaining amount of Rs 11.87 crore from them (GVIL Rs 3.36 crore and GCL Rs 8.51 crore).
When this was pointed out (December 2019), the DMO, Jowai had stated (February 2020/October 2020) that demand notices were issued (February 2020/August 2020) to the companies to clear the dues.
The DMO, Jowai further informed (February 14, 2022) the audit that GVIL cleared the outstanding dues of mineral cess of Rs 3.36 crore (between February and March, 2021).
In respect of GCL, the DMO, Jowai admitted that the amount of Rs 8.51 crore is still pending (February 2022).

spot_img

Related articles

RBI wins global Digital Transformation Award 2025

Mumbai, March 15: The Reserve Bank of India has won the Digital Transformation Award 2025, instituted by Central...

Owaisi should read history so he can come to senses: Shiv Sena leader Manisha Kayande

New Delhi, March 15: Shiv Sena leader Manisha Kayande on Saturday strongly criticised AIMIM chief Asaduddin Owaisi for...

Stocks remain top investment choice for next-gen wealthy Indians: Report

New Delhi, March 15: Stocks are the most preferred investment option among India’s next-generation high-net-worth individuals (HNWIs), a...

Neetu Kapoor shares ‘precious’ first picture taken with ‘gorgeous’ Alia Bhatt

Mumbai, March 15: On her daughter-in-law’s 32nd birthday on Saturday, veteran actress Neetu Kapoor shared the first “precious”...