REPORT OF THE CHIEF AUDITOR - WordPress.com · 2017-04-18 · land rates- ` 66.85 lakh. In 9 cases compounding fee amounting to ` 66,84,893 was recovered short due to incorrect application

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REPORT OF THE CHIEF AUDITOR

2011-2012

MUNICIPAL CORPORATION OF DELHI (Part relating to South Delhi Municipal Corporation)

P RE FA C E This report for the financial year 2011-12 in respect of South Delhi Municipal

Corporation has been prepared for submission to the Standing Committee, SDMC in

accordance with Section 206(3) of the Delhi Municipal Corporation Act, 1957 as

amended by the Delhi Municipal Corporation (Amendment) Act, 2011. The Annual

Audit Report presents the significant audit findings of test check conducted by the

Office of the Chief Auditor on such transactions of the Erstwhile Municipal

Corporation of Delhi for the year 2011-12 which now either fall within the

jurisdiction of South Delhi Municipal Corporation or are relevant to the South Delhi

Municipal Corporation also. Matters relating to earlier years and later years

wherever deemed necessary have also been included.

It is worth mentioning that audit of transactions pertaining to a financial year

is conducted during the succeeding financial year. The departments are informed of

the preliminary audit observations through Audit Memorandum/Half Margin. This is

followed by Inspection Reports issued after completion of each audit. The

irregularities which are likely to be included in the Audit Report are brought to the

notice of the Commissioner through Draft Audit Paragraphs. The departments are

requested to confirm the facts & figures stated in the Draft Audit Paragraphs and

offer their comments within four weeks of their receipt. On receipt of satisfactory

reply from the department, the Draft Audit Paragraph is settled and in case the

reply is not found satisfactory, the same is suitably incorporated in Audit Para.

Accordingly the audit of transactions pertaining to the financial year 2011-12 was

conducted during 2012-13 and process of issue of draft paras and finalization of

Audit Report commenced during 2013-14.

The Report includes financial irregularities to the extent of ` 5010.18 lakh.

Major cases include “Loss due to non-allotment of rights for display of

advertisements through kiosks (` 103.20 lakh)”, “Loss due to non-recovery of

annual permission fee (` 103.71 lakh)”, “Short recovery of compounding fee due to

incorrect application of land rates (` 66.85 lakh)”, “Payment of Ready Mix Concrete

without delivery challans and computerized delivery challans/batching mix slips

(` 252.11 lakh)”, “Irregularities in the execution of work ‘Construction of Grade

Separator at Dabri intersection of Pankha Road” (` 65.06 lakh)”, “Review of

Ayurvedic Panchkarma Hospital, Kalu Saria, S.D.M.C.”, “Review of New Pension

Scheme, S.D.M.C. (` 1610.72 lakh) and “Outstanding temporary advances

(` 2262.48 lakh)”.

The Annual Audit Report has been prepared on the basis of

records/information furnished and made available by the auditees units. The Office

of the Chief Auditor disclaims any responsibility for any mis-information or non-

information on the part of the departments.

(Nand Kishore) Dated: Chief Auditor

South Delhi Municipal Corporation

C O N T E N T S Financial

implications (` in lakh)

Page No.

OVER VIEW iv PART-I’A’ Non submission of Monthly Accounts 1 PART-I’B’ Non submission of Annual Accounts 2 PART-II Non submission of Annual Appropriation

Accounts 3

PART-III FINANCIAL IRREGULARITIES A RECEIPTS AUDIT (a) Property Tax Audit 1. Non-recovery of dues against

dishonoured cheques. 105.09 4

2. Loss due to non-allotment of rights for display of Advertisements through Kiosks.

103.20 6

3. Loss due to non-recovery of license fee.

15.62 9

4. Loss due to non-recovery of license fee.

11.05 12

(b) Building 5. Outstanding demolition charges. 121.59 15 6. Loss due to non-recovery of annual

permission fee. 103.71 17

7. Short/non deposit of Parking Charges 79.65 19 8. Short recovery of compounding fee

due to incorrect application of land rates.

66.85 21

9. Short recovery of compounding fee due to incorrect application of land rates.

48.99 23

10. Short recovery of compounding fee due to incorrect application of land rates/non recovery of mixed land use charges.

14.28 25

11. Non-recovery of demolition charges. 12.91 27 12. Non deposit of conversion charges &

Car parking charges. 7.82 28

13. Non-deposit/short deposit of mixed land use charges.

5.78 30

14. Loss due to non deposit of one time car parking charges

5.56 31

ii

B WORKS MANAGEMENT AUDIT (a) Engineering 15. Payment of Ready Mix Concrete

without delivery challans and computerized delivery challans/batching mix slips.

252.11 32

16. Irregularities in the execution of work- “Construction of Grade Separator at Dabri intersection of Pankha Road”.

65.06 34

17. Non-enforcement of revised provisions in regard to Quality Assurance Audit/Third Party Testing Charges of CPWD Manual for implementation in erstwhile MCD resulting into irregular re-imbursement of Quality assurance audit/Third party testing charges to contractors.

30.65 41

18. Excess payment due to non deduction on account of decrease in price of Steel Re-inforcement bars under Clause 10 CA.

24.77 43

19. (A). Overpayment due to incorrect computation of quantity of BM and AC Mix

(B). Overpayment on account of less use of bitumen

15.35

4.24

46

20. Irregularities in testing of Ready Mix Concrete samples.

11.32 49

21. Payment of Ready Mix Concrete without verifying challans.

9.53 51

22. Excess payment due to non deduction on account of decrease in price of bitumen under Clause 10 CA.

3.21 53

23. Overpayment towards laying Water Bound Macadam.

2.83 55

24. Overpayment towards providing & laying Ready Mix Concrete.

2.36

57

(b) D.E.M.S. 25. Irregular payment to the contractors

towards hiring of tractor trolleys. 6.25 59

26. Irregular payment to the contractor towards hiring of Bajaj GC Max (LMV small).

3.41 61

iii

C HEALTH 27. Review of Ayurvedic Panchkarma

Hospital, Kalu Sarai, S.D.M.C.

64

D HORTICULTURE 28. Wasteful expenditure due to non–

planting the plants 3.79 69

E ACCOUNTS 29. Review of New Pension Scheme,

S.D.M.C. 1610.72 71

30. Outstanding temporary advances 2262.48 77 F MISCELLANEOUS 31. Outstanding Audit Reports, Inspection

Reports and Audit Objections. - 80

Annexure- A - 86 Annexure- B1 - 89 Annexure- B2 - 91 Annexure- C - 95 Annexure- D - 97

iv

O V E R V I E W

I. Non-recovery of dues against dishonoured cheques- ` 105.09 lakh.

The department is yet to recover dues amounting to ` 1,05,08,860 in

respect of 897 cheques tendered towards payment of property tax in Central

Zone which were dishonoured.

(Para 1)

II. Loss due to non-allotment of rights for display of advertisements through kiosks- `.103.20 lakh.

Inaction of the department for not awarding the contract to the second

highest bidder, M/s Pisces Communications Pvt. Ltd., despite knowing that the

highest bidder, M/s Adwel Advertising Service had not cleared outstanding dues

amounting to ` 11.97 crores, caused loss to the Corporation amounting to

` 1,03,20,000 in respect of Najafgarh Zone for the period from December, 2008

to November,2010.

(Para 2)

III. Outstanding demolition charges - ` 121.59 lakh. The Building departments, South Zone & West Zone are yet to recover

dues amounting to ` 1,21,59,096 in respect of 1310 cases towards demolition

charges.

(Para 5)

IV. Loss due to non-recovery of annual permission fee- ` 103.71 lakh.

Two property occupiers/owners applied for grant of permission to run

Banks in their premises under mixed land use in June, 2000 & February, 2002,

but the Building department did not grant any permission to them. Resultantly

they did not pay annual permission fee for the period 2000-01 to 2012-13 which

amounted to ` 1,03,71,173 but continued to run the Banks in their premises.

(Para 6)

v

V. Short/non deposit of Parking charges- ` 79.65 lakh.

Out of 14 property owners of West Zone, 13 property owners short

deposited the parking charges while one property owner did not deposit the

parking charges. This has resulted into short/non deposit of parking charges

amounting to ` 79,64,674.

(Para 7) VI. Short recovery of compounding fee due to incorrect application of

land rates- ` 66.85 lakh.

In 9 cases compounding fee amounting to ` 66,84,893 was

recovered short due to incorrect application of land rates.

(Para 8)

VII. Payment of Ready Mix Concrete without delivery challans and

computerized delivery challans/batching mix slips- ` 252.11 lakh. Payments amounting to ` 2,52,10,688 were released to the contractors for

providing & laying R.M.C. without delivery challans and computerized delivery

challans.

(Para 15)

VIII. Irregularities in the execution of work- “Construction of Grade

Separator at Dabri intersection of Pankha Road”- ` 65.06 lakh.

1. Non effecting of recovery of balance amount of Secured Advance and

incorrect calculation of escalation amount has resulted in excess

payment of escalation amount of ` 37,00,690.

2. Incorrect application of labour rates under Clause 10 CC resulted in

excess payment of ` 22,69,746.

3. Undue/extra payment of ` 5,35,867 was made by wrongly including the

items of centering shuttering separately in the bill of quantities.

(Para 16)

vi

IX. Non-enforcement of revised provisions in regard to Quality Assurance Audit/Third Party Testing charges of CPWD Manual for implementation in erstwhile M.C.D. resulting into irregular re-imbursement of Quality Assurance Audit/Third Party Testing charges to contractors - ` 30.65 lakh.

Irregular re-imbursement of Quality Assurance Audit/Third Party Testing

charges to contractors amounting to ` 30,65,313 due to non-enforcement of

revised provisions in regard to Quality Assurance Audit/Third Party Testing

charges of CPWD Works Manual 2010 for implementation in erstwhile M.C.D.

(Para 17)

X. Review of Ayurvedic Panchkarma Hospital, Kalu Sarai, S.D.M.C.

Ayurvedic Panchkarma Hospital, Kalu Sarai though evoked good response

during 2008-09 but thereafter because practically dormant in giving panchkarma

treatment/therapy to the patients/people residing in its catchment area. The

hospital has also been losing its appeal for general ayurvedic treatment. There

is a need to take a serious call on improving the utilization of doctors/staff of this

hospital.

(Para 27)

XI. Review of New Pension Scheme, S.D.M.C.

Non-remittance of NPS contributions with the concerned Trustee Bank

(Bank of India) and in the relevant accounts of Subscribers resulted into over

burdening of Municipal exchequer on account of interest of ` 4,81,07,703 and

Non-claming of Employer’s contribution of New Pension Scheme amounting to

` 11,29,64,265 in respect of Employees/Teachers of Education department from

Govt. of NCT, Delhi, while seeking reimbursement of 70% of expenditure incurred

on Education under different schemes of Non-Plan (Education).

(Para 29)

XII. Outstanding temporary advances- ` 2262.48 lakh.

Temporary advances amounting to ` 2262.48 lakh drawn by the drawing &

disbursing officers of different departments of the zones during the years

1998-99 to 2011-12 have not been adjusted so far.

(Para 30)

PART-I ‘A’

Non-submission of Monthly Accounts of erstwhile Municipal Corporation of Delhi

Section 205(i) of the D.M.C. Act, 1957 provides the Municipal Chief Auditor

shall conduct a monthly examination and audit of Municipal accounts and shall

report thereon to the Standing Committee who shall publish monthly an abstract of

receipts and expenditure of the month last preceding signed by not less than two

members of the Standing Committee and by the Municipal Chief Auditor.

Regulation 5 of Delhi Municipal Corporation (Maintenance of Accounts

Regulations, 1959) provides that at the end of each month a monthly abstract shall

be drawn up of the General Account and after the signature of Commissioner shall

be forwarded to the Municipal Chief Auditor for his monthly examination and report

to the Standing Committee. The abstract shall be forwarded to Municipal Chief

Auditor by 15th of the second month following the month to which the accounts

relate. Accordingly Monthly Accounts of erstwhile Municipal Corporation of Delhi

upto the year 2011-12 which have become due for submission as per the following

schedule have not been received so far (October, 2013).

(i) 2004-05 Due during 15th June, 2004 to 15th May, 2005,

(ii) 2005-06 Due during 15th June, 2005 to 15th May, 2006,

(iii) 2006-07 Due during 15th June, 2006 to 15th May, 2007,

(iv) 2007-08 Due during 15th June, 2007 to 15th May, 2008,

(v) 2008-09 Due during 15th June, 2008 to 15th May, 2009,

(vi) 2009-10 Due during 15th June, 2009 to 15th May, 2010,

(vii) 2010-11 Due during 15th June, 2010 to 15th May, 2011,

(viii) 2011-12 Due during 15th June, 2011 to 15th May, 2012.

Above position is brought to the knowledge of Standing Committee, South

Delhi Municipal Corporation for kind information.

2

Non-submission of Monthly Account by South Delhi Municipal Corporation

Monthly Account of S.D.M.C. for the month of March, 2013 which has become

due for submission by 15th May, 2013 has also not been received so far (October,

2013).

This is brought to the kind knowledge of the Standing Committee for issue of

such direction as may be deemed appropriate in the matter.

PART-I ‘B’

Non-submission of Annual Accounts

of erstwhile Municipal Corporation of Delhi

In accordance with Regulation 6 of Delhi Municipal Corporation (Maintenance

of Accounts Regulations, 1959), the Annual Account of erstwhile Municipal

Corporation of Delhi for the year 2011-12 was due to be submitted to audit by 15th

June, 2012 whereas this account has not been submitted so far (October, 2013).

Besides above, Annual Accounts of erstwhile Municipal Corporation of Delhi

for the seven preceding years i.e. 2004-05 to 2010-11 which became due for

submission to audit during the period 15th June, 2005 to 15th June, 2011 have also

not been submitted so far (October, 2013).



Non-submission of Annual Account by South Delhi Municipal Corporation

Annual Account of S.D.M.C. for the year 2012-13 became due for submission

by 15th June, 2013 but is yet to be submitted to audit (October, 2013).



3

PART-II

Non-submission of Annual Appropriation Accounts of erstwhile Municipal Corporation of Delhi

In accordance with Regulation 16 of Delhi Municipal Corporation

(Maintenance of Accounts Regulations, 1959), the Appropriation Account of

erstwhile Municipal Corporation of Delhi for the year 2011-12 was due to be

submitted to audit after submission of Annual Account by 15th June, 2012 whereas

this account has not been submitted so far (October, 2013).

In fact Annual Appropriation Accounts of erstwhile Municipal Corporation of

Delhi for the preceding nine years i.e. 2002-03 to 2010-11 which became due for

submission to audit have also not been submitted so far (October, 2013).



Non-submission of Annual Appropriation Account

by South Delhi Municipal Corporation

Annual Appropriation Account of S.D.M.C. for the year 2012-13 became due

for submission by 15th June, 2013 but is yet to be submitted to audit (October,

2013).



4

1. Non-recovery of dues against dishonoured cheques- ` 105.09 lakh.

The department is yet to recover dues amounting to ` 1,05,08,860 in respect of 897 cheques tendered towards payment of property tax in Central Zone which were dishonoured.

As per instructions issued from time to time from the office of the Chief

Accountant, following procedure is to be followed for the accountal and

re-adjustment of dishonoured cheques.

a- When a dishonoured cheque is returned by the bank, the reconciliating clerk

in the Accounts department, would trace from the dates on reverse of

cheques, the daily return received from the department and take necessary

action for passing reverse entries of original credits to revenue. He should

return the cheque to the department concerned for claiming amount from the

parties.

b- The amount of dishonoured cheques would immediately be debited in the

cash book to the head of account against which the credit was originally

given. The Zonal A.C.As. would maintain chronologically a register of

dishonoured cheques received from A.O. (H.Q.) and also watch their

clearance.

c- The department concerned shall ensure quick recovery of the dues from the

defaulting parties alongwith penalty wherever it is leviable.

d- The Zonal A.C.As. shall ensure that the registers for watching adjustment of

dishonoured cheques are invariably maintained in their respective offices.

They should also furnish a certificate regarding minus entry in Demand and

Collection registers or recovery action from the department concerned of the

zones.

A review of Dishonoured Cheque register maintained in Assessment &

Collection branch of Central Zone disclosed that the department received 1024

dishonoured cheques from A & C Head Quarter during the years 2009-10 &

2010-11, out of which it recovered property tax dues in 127 cases. However, in

remaing 897 cases, the department neither took write back action nor did it recover

5

the dues. Out of 897 cases, in 119 cases, cheque No. & G-8 No. were not

mentioned in the dishonoured cheque register. Thus dues amounting to

` 1,05,08,860 remained unrecovered in 897 cases.

The matter was brought to the notice of the department in April, 2012, but no

reply has been received so far (October, 2013).

(MCA/RS/DP-27(S)/2011-12)

6

2. Loss due to non-allotment of rights for display of advertisements through kiosks- `.103.20 lakh.

Inaction of the department for not awarding the contract to the second highest bidder, M/s Pisces Communications Pvt. Ltd., despite knowing that the highest bidder, M/s Adwel Advertising Service had not cleared outstanding dues amounting to ` 11.97 crores, caused loss to the Corporation amounting to ` 1,03,20,000 in respect of Najafgarh Zone for the period from December, 2008 to November,2010.

Condition No. 5 of notice for auction & condition 3(c) of terms & conditions for

allotment of rights for display of advertisements through kiosks in respect of Zones

provides that:-

“Only those highest bidders will be eligible for being declared as successful

highest bidders for the contract for which they quote the highest rates, who have

cleared all past dues against their previous contracts, if any, allotted to them by the

department. In case previous dues are not cleared by such highest bidders, the

particular contract shall be offered to the second highest bidder.”

The Advertisement department of the erstwhile Municipal Corporation of

Delhi issued Notice for Auction vide No.ADC (Advtt.)/unipoles/2008-09/1075 dated

21.10.2008 for display of advertisement(illuminated or non-illuminated) through

kiosks of the size 50” X 30” on streetlight poles existing only on the roads

maintained by the MCD in respect of Najafgarh Zone for a period of two years. Open

auction was held on 31.10.2008 and M/s Adwel Advertising Services offered the

highest bid for Rs. 4,35,000 p.m. while M/s Pisces Communications Pvt. Ltd. offered

the second highest bid for ` 4,30,000 p.m. The Auction Committee (31.10.2008)

recommended to allot contract to M/s Adwel Advertising Services, the highest

bidder, subject to clearance of all past dues, deposit of security amount equivalent

to three month’s licence fee, one month’s advance licence fee, advertisement tax

and completion of other requisite formalities. The Advertisement department

(3.11.2008) requested M/s Adwel Advertising Services to deposit past dues of

` 11,97,12,324 and 25% of the amount offered by him in respect of this contract

latest by 5.11.2008. In case the dues are not cleared and 25% of the offered

amount is not deposited by the stipulated date, the firm shall not be eligible for

7

being declared as “successful highest bidder” and the bid shall be cancelled and

earnest money deposited shall be forfeited.

Instead of complying with the requirements of letter dated 3.11.2008, the

firm approached the High Court, which vide order dated 4.11.2008 restrained the

MCD from awarding this contract to any other person till the next date of hearing

i.e. 2.12.2008. The department neither took any action to get the stay order

vacated from the Court nor to get the dues from the firm. However after 4 months,

the department informed the firm on 25.3.2009 that various cheques submitted

towards the outstanding dues and 25% of the amount offered for the contract were

rejected by the bankers and their offer shall be withdrawn.

Instead of withdrawing the contract of the firm and awarding the contract to

second highest bidder M/s Pisces Communication Pvt. Ltd. for ` 4,30,000 p.m., the

department allotted the contract for display of advertisement (illuminated/non-

illuminated) through kiosks on street light poles on M.C.D. roads for the period

ending 31.3.2011 in r/o Najafgarh Zone at a monthly licence fee of ` 4,35,000 vide

No.ADC/Advt./2009/D-238 dated 26.5.2009 without receiving past dues.

M/s Adwel Advertising Service did not pay the licence fee right from the date

of allotment and the department issued Show Cause Notice on 18.8.2009 to the firm

asking them as to why the contract be not cancelled and security forfeited for not

paying licence fee amounting to ` 8,96,100.

Consequent upon dismissal of suit(19.01.10) filed by M/s Adwel Advertising

Service in the High Court on 4.11.2008, and non-payment of outstanding dues

amounting to ` 19,90,23,374 in respect of South, Central, City, Najafgarh and

Shahdara North Zones, the department cancelled the contract for pole kiosks in

respect of these Zones vide No. OSD(Advtt.)/2009/D-1593 dated 25.1.2010.

Since M/s Adwel Advertising Service, being the highest bidder, had not

cleared their previous dues amounting to ` 11,97,12,324, the department should

not have considered this firm for awarding the contract and should have awarded

the contract to M/s Pisces Communications Pvt. Ltd. being the second highest

8

bidder for ` 4,30,000 in terms of condition No.5 of notice for auction & condition

3 (c) of terms & conditions for allotment of rights for display of advertisements

through kiosks in respect of zone.

Thus inaction of the department for not awarding the contract to the second

highest bidder, M/s Pisces Communications Pvt. Ltd., despite knowing that M/s

Adwel Advertising Service had to pay outstanding dues amounting to ` 11.97 crores,

caused loss to the Corporation amounting to ` 1,03,20,000 (` 4,30,000 X 24

months) in respect of Najafgarh Zone for the period from December, 2008 to

November,2010.

The irregularity was brought to the notice of the department in February,

2011, but no reply has been received so far (October, 2013).

(MCA/RS/DP-3(S)/2011-12)

9

3. Loss due to non-recovery of license fee - ` 15.62 lakh.

Non invoking the condition No.13 of terms & conditions for the grant of permission for display of advertisement through wall wrap M/s Adcom Network continuously defaulted in payment of licence fee ab-initio, which resulted into accumulation of dues and consequential loss of revenue amounting to ` 15,62,170.

Condition No. 2 & 3 of terms & conditions for the grant of permission for

display of advertisements through wall wrap provide that the advertiser will submit

the proposal/apply for the grant of permission for display of advertisements through

wall wrap on private properties and shall deposit with the M.C.D. advance monthly

fee @ ` 115 per sq.ft. of the display area by 10th of each calendar month failing

which a penalty/interest will be leviable @ 2% per month on the unpaid amount.

The permission will be subject to satisfactory performance at the end of each year

and enhancement of fee by 10% each year.

Condition No.13 further provides that in case of breach of any terms &

conditions or contraventions of any of the provisions of the DMC Act, Advertisement

Bye-laws or in any case any fee, charge, tax or any other amount is not paid, the

Municipal Corporation of Delhi shall take appropriate action against the advertiser

for recovery of the dues of MCD and/or for cancellation of the contract, as and when

such default is reported by the MCD. In any case, dues of the MCD shall be the first

charge on the forfeited security/guarantee retained by the Corporation while

granting the permission and they shall immediately release such dues of the MCD.

In such an eventuality, the MCD shall be at liberty to withdraw the permission.

M/s Adcom Network submitted proposal in December, 2008 for display of

advertisements through one Wall Wrap of the size 40’x6’ at B-87, Defence Colony,

New Delhi. The firm was asked (20.1.2009) to deposit security money of

` 82,800 equivalent to three months licence fee, one month’s advance licence fee of

` 27,600 (` 115x240 sq.ft.) and advertisement tax of ` 864 for the year 2008-09

alongwith requisite affidavit and an agreement duly signed. The firm deposited

security money of ` 82,800 vide G-8 No. 991046 dated 19.2.2009, one month

advance licence fee of ` 27,600 vide G-8 No. 991030 dated 19.2.2009 and

advertisement tax alongwith duly signed agreement & affidavit executed on

10

27.1.2009. The Advertisement department granted permission/No Objection

Certificate to M/s Adcom Network vide letter No.ADC(Advtt.)/2009/D-1615 dated

4.2.2009/16.2.2009 for display of advertisements through one wall wrap of the size

40’x6’ with a total display area of 240 sq.ft. at B-87, Defence colony. New Delhi

(Central Zone).

M/s Adcom Network (20.8.2009)requested the Advertisement department to

grant permission to increase the size of wall wrap from 40’x6’ to 35’x15’. The

department granted the permission to the firm vide letter No. ADC (Advtt.)/2009/

D-965 dated 25.9.2009 for increasing the size of wall wrap from 40’x6’ (240sq.ft.) to

30’x15’ (525 sq.ft.) subject to deposit of security amount of `98,325 and licence fee

for the period 16.2.2009 to 30.9.2009 amounting to ` 3,11,363 and advertisement

tax of ` 800 for the increased size by way of 3 separate pay orders. The firm vide

letters dated 26.10.2009 & 11.5.2011 requested the department to amend the

increased size of wall wrap 30’x15’(525 sq.ft.) to 30’x15’ (450sqft.)the permission of

which was granted on 25.9.2009. The department vide letter No. Co(Advtt.)/2011/

D-1002413 dated 7.6.2011 again granted permission for increasing the size of wall

wrap from 40’x6’ to 30’x15’ as per duly approved rate of licence fee and terms &

conditions of NOC. However, since the wall wrap of the size 30’x15’ = 450 Sqft. was

already being put up at site the licence fee was payable with retrospective effect

i.e. 16.2.2009.

On 19.7.2011, M/s Adcom Network requested the Advertisement department

to alter the approved size of wall wrap 30’x15’ (450 sqft.) to 34’x17’ (578 sqft). The

department granted the permission vide letter No. Co(Advtt.)/2011/D-1005519

dated 16.8.2011 subject to deposit of additional security amount of ` 44,160 addl.,

advertisement tax of ` 1,512 and monthly licence fee @ ` 66,470 w.e.f. 1.7.2011 as

the wall wrap of the increased size was already in existence at site. As the firm did

not deposit requisite payments and complete other formalities, the department

issued ‘Show Cause Notice’ vide No. Co(Advtt.)/2011/D-1006728 dated 16.9.2011 to

the firm asking them to show cause as to why the offer given to them vide letter

dated 16.8.2011 be not withdrawn, NOC dated 4.2.2009 cancelled and security

amount forfeited. As the firm defaulted in the payment of licence fee as per

11

approved terms & conditions, the department issued a ‘Demand Notice’ (BWP

07756431)vide No. Co(Advtt.)/2013/D-1002 dated 1.3.2013 to the firm directing

them to deposit outstanding dues of ` 15,62,170 accumulated upon the company

upto February, 2013. The firm did not deposit the said dues.

Audit observed that condition No.13 of the terms & conditions which clearly

provided that in case any fee, charge, tax or any other amount is not paid, the

Corporation shall take appropriate action against the advertiser for recovery of the

dues of MCD and/or for cancellation of the contract as and when such default is

reported by the MCD. Since M/s Adcom Network continuously defaulted in payment

of licence fee ab-initio, the department should have invoked this condition. But this

was not done so and resulted into accumulation of dues and consequential loss of

revenue amounting to ` 15,62,170.

The matter was brought to the notice of the department in February, 2011,

but no reply has been received so far (October, 2013).

(MCA/RS/DP-22(S)/2011-12)

12

4. Loss due to non-recovery of licence fee - ` 11.05 lakh.

Non invoking the condition No.13 of terms & conditions for the grant of permission for display of advertisements through wall wrap resulted into loss due to non-recovery of licence fee ` 11,05,104.

Condition No. 2 & 3 of terms & conditions for the grant of permission for

display of advertisements through wall wrap provide that the advertiser will submit

the proposal/apply for the grant of permission for display of advertisements through

wall wrap on private properties and shall deposit with the M.C.D. advance monthly

fee @ ` 115 per sqt. of the display area by 10th of each calendar month failing which

a penalty/interest will be leviable @ 2% per month on the unpaid amount. The

permission will be subject to satisfactory performance at the end of each year and

enhancement of fee by 10% each year.

Condition No.13 further provides that in case of breach of any terms &

conditions or contraventions of any of the provisions of the DMC Act, Advertisement

Bye-laws or in any case any fee, charge, tax or any other amount is not paid, the

Municipal Corporation of Delhi shall take appropriate action against the advertiser

for recovery of the dues of MCD and/or for cancellation of the contract, as and when

such default is reported by the MCD. In any case, dues of the MCD shall be the first

charge on the forfeited security/guarantee retained by the Corporation, while

granting the permission and they shall immediately release such dues of the MCD.

In such an eventuality, the MCD shall be at liberty to withdraw the permission.

M/s Asian Trading Company submitted proposal in September, 2008 for

display of advertisements through one No. of Wall Wrap of the size 60’x14’ at

79-80, Satkar Building, Nehru Place, New Delhi. The firm was asked (22.9.2008) to

deposit security money of ` 2,89,800 equivalent to three months licence fee, one

month’s advance licence fee of ` 96,600 (` 115x840 sq.ft.) and advertisement tax of

` 2,110 for the year 2008-09 with an agreement duly signed. The firm vide letter

dated 7.10.2008 enclosed 3 pay orders for ` 2,89,800, ` 96,600 and ` 2,110

alongwith duly signed agreement executed on 26.9.2008. The Advertisement

13

department granted permission/No Objection Certificate to M/s Asian Trading

Company vide letter No.ADC(Advtt.)/2008/D-1220 dated 26.11.2008 for display of

advertisements through one wall wrap of the size 60’x14’ with a total display area

of 840 sq.ft. at 79-80, Satkar Building, Nehru Place, New Delhi.

M/s Asian Trading Company further deposited ` 1,98,996 vide letter dated

5.3.2009 towards monthly licence fee and after that the firm did not deposit licence

fee. The department issued ‘Show Cause Notice’ to the firm on 15.6.2009 after

noticing on 12.6.2009 that the firm had displayed the wall wrap at the roof-top/

terrace of the property in excess of the permitted size, in utter violation of the

provisions of DMC Act, terms & conditions of NOC/permission and called upon to

show cause as to why NOC / permission given to them be not cancelled and security

deposited forfeited. The Advertisement department then cancelled No Objection

Certificates for display of advertisements through wall wrap at Satkar Building,

Nehru Place, Delhi vide No. CO(Advtt./2010/D-364 dated 20.4.2010 together with

other 5 permissions granted to the firm as the dues amounting to ` 28,37,140 had

accumulated against these NOCs/ permissions which included the outstanding dues

of ` 15,53,630 against the said building/permission for wall wrap. The firm

deposited ` 5 lakh as part payment of outstanding dues of ` 28.37 lakh lying against

6 contracts vide G-8 No. AH 20035 dated 14.5.2010.

Audit observed that condition No.13 of the terms & conditions had clearly

provided that in case any fee, charge, tax or any other amount is not paid, the

Corporation shall take appropriate action against the advertiser for recovery of the

dues of MCD and/or for cancellation of the contract as and when such default is

reported. But the department instead of invoking this condition remained silent and

on 20.4.2010 cancelled the permission/NOC thereby giving undue opportunities to

the firm to keep on displaying the advertisements through wall wrap. This resulted

into accumulation of the arrears to ` 15.53 lakh.

14

Thus non-recovery of licence fee has resulted in loss of revenue of

` 11,05,104 as detailed below

S.N. Period No. of months

Rate of Licence fee (`)

Loss of licence fee

(`) 1. 26.11.2008

to 25.11.2009

12

(840 x 115 = 96,600) 96,600

11,59,200

2. 26.11.2009 to

20.4.2010

5

(96,600 + 10%) = 1,06,260

5,31,300

Less amount paid by the firm 16,90,500 (-) 5,85,396

11,05,104

The irregularity was brought to the notice of the department in March, 2012,


(MCA/RS/DP-20(S)/2011-12)

15

5. Outstanding demolition charges- ` 121.59 lakh.

The Building departments, South Zone & West Zone are yet to recover dues amounting to ` 1,21,59,096 in respect of 1310 cases towards demolition charges.

Section 343 of D.M.C. Act, 1957, provides that where the erection of any

building or execution of any work has been commenced or is being carried out or

has been completed without proper sanction or contrary to any condition, such

building shall be demolished within such period not exceeding 15 days or as may be

specified in the order by person concerned failing which the Commissioner may

himself cause the erection or the work to be demolished and the expenditure of

such demolition shall be recovered from such person as an arrear of tax.

A review of Demolition Charges register for the years 2010-11 to 2011-12 of

Executive Engineer (Building), South Zone & West Zone disclosed the position of

demand raised on account of demolition charges and recoveries made thereagainst

during the said years as under :-

It would be seen from the above table that out of the total demand on

account of demolition charges of ` 1,42,94,494 the department has effected the

S.N

Years No of properties

demolished

Demand Raised

(`)

Demolition Charges

recovered from

property owners

(number of properties)

Amount Recovered

& % age of Recovery

(`)

Demolition Charges

could not be recovered

from property owners

(number of properties)

Outstanding Amount

& its % age

(`)

Executive Engineer (Building), South Zone 1 2010-11 126 10,17,375 22 1,24,400

(12.23%) 104 8,92,975

(87.77%) 2 2011-12 1134 88,64,921 195 12,41,898

(14.01%) 939 76,23,023

(85.99%) Executive Engineer (Building), West Zone

3 Jan., 2011 to March, 2012

338 44,12,198 71 7,69,100 (17.43%)

267 36,43,098 (82.57%)

TOTAL 1598 1,42,94,494 288 21,35,398 (14.94%)

1310 1,21,59,096 (85.06%)

16

recovery of ` 21,35,398 which works out to 14.94%. This indicates lack of effective

monitoring by the departments towards recovering the demolition charges.

The irregularity was brought to the notice of the departments in August, 2012

& February, 2013, but no reply has been received so far (October, 2013).

(MCA/RS/DP-16(S) & 28(S)/2011-12)

17

6. Loss due to non-recovery of annual permission fee- ` 103.71 lakh.

Two property occupiers/owners applied for grant of permission to run Banks in their premises under mixed land use in June, 2000 & February, 2002, but the Building department did not grant any permission to them. Resultantly they did not pay annual permission fee for the period 2000-01 to 2012-13 which amounted to ` 1,03,71,173 but continued to run the Banks in their premises.

The Corporation vide Circular No.D/1155/Addl.Comm.(E)/99 dated 10.6.1999

issued guidelines for allowing mixed land use namely Nursing Homes, Guest Houses

and Banks in residential areas. According to these guidelines, annual permission

fee @ 10% for Banks and Nursing Homes and 2.5% for Guest Houses of the

difference between current commercial rates and current residential rates of land

(as approved by the ministry) were to be adopted for charging annual permission

fee from owner based on the actual floor area utilized for such non-residential

purposes.

A test check of two case files of properties located at Hauz Khas, New Delhi

(South Zone) disclosed that the respective property occupiers/owners applied for

grant of permission to run Banks in their premises under mixed land use in June,

2000 & February, 2002 but the Building department did not grant any permission to

them. Resultantly they have not been paying annual permission fee for the period

2000-01 to 2012-2013 but possibly are continuing to run the Banks in their

premises.

Thus failure on the part of the department to grant permission for carrying

out commercial activities despite being applied for by the respective

property occupiers/owners resulted in loss to the Corporation amounting to

` 1,03,71,173 as detailed below:-

S. N.

Property No.

Area used by Bank (sqm)

Diff. between comm. rates-

residential rate

(`)

Annual permission fee.(Area in use x 10% of

the difference in rates) and Area in use x rate of A&B category

of colony (`383) (`)

Period

Amount of annual

permission fee

(`) 1 2 kaushlya

park Hauz Khas, New

Delhi

253 syndicate

Bank

(24,150-11,550) =12,600

-

(253x1260) =3,18,780

(253x383) =96,899

2000-01 to

2005-06 2006-07

to 2012-13

6years

7years

19,12,680

6,78,293

18

25,90,973 - 15,295

(already deposited)

25,75,678 2 A-27 Hauz

Khas New Delhi

1021 Canara Bank

(24,150-11,550) =12,600

-

(1021x1260) =12,86,460

(1021x383) =3,91,043

2002-03 to

2005-06

2006-07 to

2012-03

4 years

7 yeras

51,45,840

27,37,301

78,83,141 - 87,646 (already

deposited) 77,95,495 Total 1,03,71,173

The matter was brought to the notice of the department in August 2012 but no

reply has been so far.

(MCA/RS/DP-26(S)/2011-12)

19

7. Short/non deposit of Parking charges - ` 79.65 lakh.

Out of 14 property owners of West Zone 13 property owners short deposited the parking charges while one property owner did not deposit the parking charges. This has resulted into short/non deposit of parking charges amounting to ` 79,64,674.

In terms of Public Notice issued by Municipal Corporation of Delhi regarding

mixed land use as per MPD–2021 and payment of mixed land use charges, the

owner/allottee/resident/user of the plot/dwelling unit under the mixed land use shall

be liable to pay one time charges for development of parking at such rate for one

E.C.S. per 50 sqm of plot area as under:-

‘A’ & ‘B’ Category of colonies ` 2,10,500

‘C’ & ‘D’ Category of colonies ` 1,49,750

‘E’, ‘F’ & ‘G’ Category of colonies ` 66,500

Out of the total one time charges for development of parking, 1/3rd was to be

paid on or before 30.6.2007 and the remaining 2/3rd by 31.3.2008.

A test check of applications vide which 14 property owners of West Zone

deposited conversion charges and parking charges disclosed that 13 property owners

short deposited the parking charges while one property owner did not deposit the

parking charges. This has resulted into short/non deposit of parking charges

amounting to ` 79,64,674 as detailed below:-

S.N. Property No. Category of

colony Area of

the plot in sqm.

Development of Parking charges

deposited by the owner

(`)

Development of Parking Charges

should have been deposited by the

owner (`)

(@ ̀1,49,750 per 50 Sqm- D Category)

(@ ` 66,500 per 50 Sqm-

F Category)

Parking Charges

short deposited

(`)

1 E- 107, Mansarovar Garden

D 257 3,84,875 7,69,715 3,84,840

2 D-9, Rajouri Garden

D 313.55 4,50,000 9,39,082 4,89,082

3 WZ-491, MS Block Hari Nagar

F 307 66,500 4,08,310 3,41,810

20

4 C – 596, Vikas Puri

D 324 2,99,500 9,70,380 6,70,880

5 A- 40, Vishal Enclave

D 334.45 4,06,980 10,01,678 5,94,698

6 A – 37, Vishal Enclave

D 334 4,44,652 10,00,330 5,55,678

7 C – 368, Vikas Puri

D 320 95,391 9,58,400 8,63,009

8 C-6/1, Mansarovar Garden

D 300 1,49,750 8,98,500

7,48,750

9 J- 13/41, Rajouri Garden

D 167.22 99,833 5,00,823 4,00,990

10 A – 1/166, Janak Puri

D 250 2,05,000 7,48,750 5,43,750


D 239.50 4,07,320 7,17,302 3,09,982


D 334.45 - 10,01,678 10,01,678


D 334.45 4,06,980 10,01,678 5,94,698


D 334.45 5,36,849 10,01,678 4,64,829

Total 79,64,674



(MCA/RS/DP-18(S)/2011-12)

21

8. Short recovery of compounding fee due to incorrect application of land rates- ` 66.85 lakh.

In 9 cases compounding fee amounting to ` 66,84,893 was recovered short due to incorrect application of land rates.

A test check of record of Executive Engineer (Building), Central Zone

disclosed that 9 occupancy certificates/completion certificates were issued during

the period March, 2011 to February, 2012 with levy of compounding fee applicable

for permissible/compoundable deviations. The department worked out and

recovered the compounding fee based on land rates notified by the L&DO for the

period 1.4.1998 to 31.3.2000 as against the Circle rates which had been notified by

the Special Inspector General (Regulation) GNCTD, vide letter No.F.1(281)Regn.Br./

HQ/Div.Com./09/45 dated 4.2.2011.

Thus incorrect application of land rates has resulted into short recovery of

compounding fee amounting to ̀ 66,84,893 in 9 cases as detailed below:-

S. N.

Property No. & Category of Colony

C.C. issue No. & date

Area in sq.mtr.

Compounded on land rate

sq.mtr.

Land rate charged

per sq.mtr. (`)

Land rate should have

been charged per sq.mtr.

(`)

Amount recovered

short

(`) 1 D-1048, New Friends Colony

‘A’ 362/B/CC/CZ/11 dated 27.12.11

4.82 11,550 86,000 3,58,849

2 D-138, Defence Colony ‘B’ 354/B/CC/CZ/11 dated 23.11.11

10.17 11,550 68,200 5,76,130


11.09 11,550 68,200 6,28,248


6.10 11,550 68,200 3,45,565

5 D1-A, South Extn.-2 ‘A’ (Commercial)

350/B/CC/CZ/11 dated 25.10.11

8.25 26,680 86,000x3= 2,58,000

19,08,390

6 C-27, Pampose Enclave ‘B’ 375/B/CC/CZ/12 dated 21.2.12

12.84 11,550 68,200 7,27,386

7 A-24/8, Mohan Co-op. Ind. Estate, Mathura Road ‘D’

(Commercial)

8/B/CC/CZ/12 dated 6.2.12

11.47 18,480 43,600x3= 1,30,800

12,88,310

8 W-100, Creater Kailash-I ‘B’ 376/B/CC/CZ/12 dated 21.2.12

12.65 11,550 68,200 7,16,622

9 C-340, Defence Colony ‘B’ 359/B/CC/CZ/11 dated 27.12.11

2.39 11,550 68,200 1,35,393

Total 66,84,893 The irregularity was brought to the notice of the department in November,

2012. Executive Engineer (Building), Central Zone replied (24.5.2013) that

compounding fee are calculated on the basis of office order bearing

No.8/EE(B)HQ/92 dated 8.12.1992 issued under the signature of Commissioner of

22

erstwhile M.C.D. now S.D.M.C. categorically lays down as “Equivalent to the land

rates prevailing at the time of compounding. The prevailing rates shall be the

official notified rates of land in the area by the L & D O from time to time.

The reply furnished by the department is not acceptable in audit as it reflects

the perception and understanding of the Executive Engineer (Building) and may not

necessarily reflect the official stand of the department/Commissioner/S.D.M.C. As

such, the department was requested to get the reply duly vetted/approved by the

competent authority so as to reflect the official view of the department. But no final

reply has been received so far (October, 2013)

(MCA/RS/DP-4(S)/2011-12)

23

9. Short recovery of compounding fee due to incorrect application of land rates- ` 48.99 lakh.

In 9 cases compounding fee amounting to ` 48,99,350 was recovered short due to incorrect application of land rates.

The Executive Engineer (Building), West Zone issued 4 occupancy

certificates/completion certificates and regularized 5 plans of additional structure in

properties in terms of Notification dated 22.9.2006 relating to ‘levy/charges for

Residential Plotted Development Regulations, 2006’during the period July, 2009 to

July, 2012 with levy of compounding fee applicable for permissible/ compoundable

deviations. The record disclosed that the department worked out and recovered the

compounding fee based on land rates notified by the L&DO for the period 1.4.1998

to 31.3.2000 as against the Circle rates which had been notified by the Joint

Secretary (Revenue), GNCTD dated 18.7.2007 and subsequently revised from time

to time.

Thus incorrect application of land rates has resulted into short recovery of

compounding fee amounting to ̀ 48,99,350 in 9 cases as detailed below:-

(A) S. N.


C.C. issue No. & date

Area in sq.mtr.

Compounded on land

rate sq.mtr.

Land rate charged

per sq.mtr.

(`)



(`)

Amount of compounding

fee recovered

short (`)

1 P.No.35 Road No. 44, West Punjabi Bagh, ‘C’

07/CC/B/WZ/ 2011/I Dt. 1.7.11

12.45 6,930 54,600 5,93,491

2 J-40, Vikas Puri, ‘D’ 02/CC/B/WZ/ 2011/ II Dt. 10.2.11

12.3 6,930 43,600 4,51,041

3 D-1 Vikas Puri, ‘D’ 04/CC/B/WZ/ 2012/ 17/II Dt. 25.5.12

9.85 6,930 87,200 7,90,659

4 Nursery School at C- Block, Janak Puri, ‘D’ (Commercial)

04/CC/B/WZ/ 09/ll Dt.17.7.09

12.60 14,490 (7,245X2)

21,800X2 = 43,600

3,66,786

Total 22,01,977

(B) S. N.


Date of application for regularization

Area in sq.mtr.

Compounded on land rate

sq.mtr.

Land rate charged

per sq.mtr. (`)



(`)

Amount of compounding

fee recovered

short (`)

1 T-29 Rajouri Garden, ‘D’ 17.05.2012 3.00 6930 87200 2,40,810

24

2 9/62 Rajouri Garden, ‘D’ 23.05.2012 13.40 6930 87200 10,75,618

3 23/64 AB Tilak Nagar ‘E’ 20.06.2012 11.96 6930 47840 4,89,284

4 C-85 Shivaji Park ‘F’ 12.09.2011 13.43 6930 32200 3,39,376

5 8/5 Subhash Nagar ‘E’ 23.07.2012 13.50 6930 47840 5,52,285

Total 26,97,373



(MCA/RS/DP-23(S)/2011-12)

25

10. Short recovery of compounding fee due to incorrect application of land rates/non recovery of mixed land use charges- ` 14.28 lakh.

Compounding fee amounting to ` 2,68,898 was recovered short from the owner due to incorrect application of land rates. The owner also did not deposit the mixed land use charges for the subsequent years 2010-11 & 2011-12 which has further resulted into non recovery of mixed land use charges amounting to ` 11,59,380.

A test check of record of Executive Engineer (Building), Central Zone

disclosed that M/s Faridabad Implements Pvt. Ltd. applied for regularization of their

premises under Mixed Land Use Regulation, 2006 for running Guest House activities

in respect of property No.C-18 Friends Colony (East), New Delhi vide file

No.182/B/UCR/CZ/2009 dated 29.9.2009. The department granted the permission

on 27.10.2009 with the levy of (i) compounding fee applicable for permissible/

compoundable deviations and (ii) mixed land use charges. The department worked

out and recovered the compounding fee based on land rates @ ` 11,550 per sqm

notified by L.& D.O. for the period 1.4.1998 to 31.3.2000 as against the Circle rates

@ ` 43,000 per sqm which had been notified by the Joint Secretary (Revenue)

GNCDT vide letter No. F-2(12)/ Fin(E-l)/part file/vol-l(ii)/3548 dated 18.7.2007. This

has resulted into short recovery of compounding fee amounting to ` 2,68,898

(8.55 sqm x ` 43,000 - ` 11,550).

The record further, disclosed that the owner did not deposit the mixed land

use charges for the subsequent years 2010-11 & 2011-12 which has further resulted

into non recovery of mixed land use charges amounting to ` 11,59,380 (5,79,690x2

years).

Thus the total amount on account of short recovery of compounding fee and

non recovery of mixed land use charges works out to ` 14,28,278.

The irregularity was brought to the notice of the department in September

2012. Executive Engineer (Building), Central Zone replied (14.5.2013) that

compounding fee are calculated on the basis of office order bearing

No.8/EE(B)HQ/92 dated 8.12.1992 issued under the signature of Commissioner of

erstwhile M.C.D. now S.D.M.C. categorically lays down as “Equivalent to the land

26

rates prevailing at the time of compounding. The prevailing rates shall be the

official notified rates of land in the area by the L & D O from time to time.

The reply furnished by the department is not acceptable in audit as it reflects

the perception and understanding of the Executive Engineer (Building) and may not

necessarily reflect the official stand of the department/Commissioner/S.D.M.C. As

such, the department was requested to get the reply duly vetted/approved by the

competent authority so as to reflect the official view of the department. But no final


(MCA/RS/DP-2(S)/2011-12)

27

11. Non-recovery of demolition charges- ` 12.91 lakh.

An amount of ` 12,91,120 was outstanding against 83 property owners in Central Zone whose unauthorised buildings/portions of buildings were demolished during the year 2011-12.

Section 343 of D.M.C. Act, 1957 provides that where the erection of any

building or execution of any work had been commenced or is being carried out or

had been completed without proper sanction or contrary to any condition, shall be

demolished within such period not exceeding 15 days or as may be specified in the

order by person concerned, failing which, the Commissioner may himself cause the

erection of work to be demolished and expenditure of such demolition shall be

recovered from such person as arrears of tax.

A review of Demolition Charges register of Building department, Central Zone

for the year 2011-12 disclosed that an amount of ` 12,91,120 as detailed in

Annexure ‘A’ was outstanding against 83 property owners whose unauthorised

buildings/portions of buildings were demolished during the year 2011-12.

Though the Building department sent notices to the Property Tax department

of the Zone for recovery of demolition charges as arrears of tax but the outstanding

amount of ` 12.91 lakh remained un-recovered.

The matter was brought to the notice of the department in November, 2012,


(MCA/RS/DP-24(S)/2011-12)

28

12. Non deposit of conversion charges & car parking charges - ` 7.82 lakh.

In 14 cases, the owners/users of the premises applied for regularization under Mixed Land Use Regulations and deposited registration charges only but did not deposit the conversion charges and development charges for car parking as required. This has resulted into non deposit of conversion charges and development charges for car parking amounting to ̀ 7,82,258.

In terms of provisions regarding Mixed Land Use Regulations envisaged in the

Master Plan-2021 and notified by the D.D.A. vide its notification dated 22nd of June,

2007, the owners/users of the premises are liable to pay the mixed land use

charges/conversion charges and one time car parking development charges of their

premises before the 30th of June every year. However, the Urban Development

Ministry, Government of India vide its notification dated 12th of August, 2008

allowed to pay one time registration charges and annual conversion charges for the

year 2006-07 and 2007-08 for such properties without any penalty under clause

15.9 (V) for mixed land use on or before 30.6.2009.

During the course of audit on the accounts of Executive Engineer (Bldg.),

Najafgarh Zone it was noticed that in 14 cases, the owners/users of the premises

applied for regularization of their premises under Mixed Land Use Regulations and

deposited registration charges only but did not deposit the conversion charges and

development charges for car parking as required. This has resulted into non deposit

of conversion charges and development charges for car parking amounting to

` 7,82,258 as detailed below.

S.N. Premises No.

and name of the locality

Nature of trade/type of

use of the premises

Built up area of the

comme-rcial

premises

(sqm)

Amount of registration

charges deposited by

the trader

(`)

G-8 No. & date vide

which registration

charges deposited

Conversion charges

payable for E, F or G

category @ ` 192 per

sqm

Car Parking Charges payable

for E,F,G Category @

`66,500/- per ECS(Equivalent car space + 50

sq.mtr. (`)

1 B-25, Nanhe Park, Matiala Bindapur Road, Near Matiala, Uttam Nagar (Category-G)

General Store 17 1,000 476088/ 3.8.2009

3,264 Not leviable being less than 20 sqm area


General Store 15 1,000 476096/ 3.8.2009


29


Office 15 1,000 476094/ 3.8.2009



Furniture Store

17 1,000 476087/ 3.8.2009


5 16A, Kh. No.11/17/1, Hari Vihar, Phase-III, Kakrola

Retail Shop 30 1,000 496079/ 7.9.2009

5,760 66,500

6 G-107, Kh. No. 32/9/10/2, Harijan Basti, Palam Extn.

Magic Car Accessories

156 1,000 905004/ 25.6.2009

29,952 2,07,480

7 RZ-H-707, Raj Nagar –II, Palam Colony

Hemant Jewellers

10 1,000 922048/ 10.7.2009


8 B-25, Nanhe Park, Near Matiala, Utam Nagar

Photography Shop

17 1,000 476095/ 3.8.2009



Cyber Café 17 1,000 476092/ 3.8.2009



Office 17 1,000 476093/ 3.8.2009


11 RZF 905/22, GF/FF, Raj Nagar-II, Palam

Chand Medical

216 1,000 490018/31.7.2009

41,472 2,87,280

12 C-73, J.J. Colony, Camp No.2, Nangloi

M/s Arora Foot- Wear

9½ 1,000 36048/ 30.9.2008


13 1354/A, HC Road, Najafgarh Phirni Road

Maana Mega Mart

75 1,000 482026/ 29.7.2009

14,400 99,750

14 K-2/510, Mata Chowk, Mahipal Pur

Plywood Shop

20 1,000 55120/ 8.3.2010


1,21,248 6,61,010

The irregularity was brought to the notice of the department in July, 2010, but

no reply has been received so far (October, 2013).

(MCA/RS/DP-1(S)/2011-12)

30

13. Non-deposit/short deposit of mixed land use charges - `. 5.78 lakh.

In two cases the property owners have short deposited mixed land use charges amounting to ` 5,77,536.

In terms of Public Notice regarding ‘Mixed Land Use as per MPD-2021 and

payment of mixed land use charges’, issued by Municipal Corporation of Delhi, the


be liable to pay mixed land use charges to the authority before 30th June every year

based on rates fixed for different categories of colonies according to type of mixed

land use as under:-

A test check of applications and G-8 receipts vide which the property owners

have deposited the parking charges/mixed land use charges with the Building

department West Zone, disclosed that in two cases, the property owners short

deposited mixed land use charges amounting to ̀ 5,77,536 as detailed below:-

S.N.

Property No. Area of the plot

Area under mixed

land use

Year Mixed land use charges paid by the

owner@ (`) 192/Sqm.

(`)

Mixed land use charges should have been paid @ ` 511/Sqm.

(Category – ‘D‘) (`)

Mixed land use

charges short

deposited (`)

1 C-1 (Part -D) Rajouri Garden, Delhi

251 Sqm 223.14 Sqm

2007-08 13,000 1,14,024 1,01,024

2008-09 to

2011-12 (4 years)

- (1,14,024x4) 4,56,096

4,56,096

2 J- 66, Rajouri Garden, Delhi

240 Sqm 32 Sqm (G.F.)

2010-11 & 2011-12 (2 year)

12,288 (6144 x 2)

32,704 (16,352 x 2)

20,416

Total 5,77,536



(MCA/RS/DP-9(S)/2011-12)

S. N.

Type of mixed land use

A & B Category of Colony

(` per Sq. Mtr.)

C & D Category of Colony

(` per Sq. Mtr.)

E, F & G Category of Colony

(` per Sq. Mtr.) 1 Retail Shops 767 511 192 2 Other Activities 383 256 96 3 Professional

Activities 192 128 48

31

14. Loss due to non-deposit of one time car parking charges - ` 5.56 lakh.

The owner deposited the conversion charges for the period from 2007-08 to 2011-12, but he did not deposit one time charges for development of parking amounting to ` 5,55,940.

In terms of Public Notice regarding “Mixed Land Use as per MPD- 2021 and

payment of mixed land use charges” issued by Municipal Corporation of Delhi, the


be liable to pay one time charges for development of parking @ ` 66,500 for ‘E’, ‘F’

& ‘G’ Categories for one E.C.S. per 50 sqm of plot area in addition to annual mixed

land use charges/conversion charges. Out of the total one time charges for

development of parking 1/3rd were payable on or before 30.6.2007 and the

remaining 2/3rd by 31.3.2008.

A test check of application vide which the property owner of the premises

B-94, Jain Park, Main Matiala Road, Uttam Nagar, Delhi having plot area of 418 sqm

disclosed that the owner deposited the conversion charges (mixed land use

charges) for the period from 2007-08 to 2011-12, but he did not deposit one time

charges for development of parking as required. This has resulted in loss due to

non-deposit of car parking charges amounting to ̀ 5,55,940 (418sqm/50 x` 66,500).

The irregularity was brought to the notice of the department in July, 2012, but

no reply has been received so far (October, 2013).

(MCA/RS/DP-12(S)/2011-12)

32

15. Payment of Ready Mix Concrete without delivery challans and computerized delivery Challans/batching mix slips- ` 252.11 lakh.

Payments amounting to ` 2,52,10,688 were released to the contractors for providing & laying R.M.C. without delivery Challans and computerized delivery challans.

(A) Para 5.8.8.9.4 & 5 of C.P.W.D. specifications 2002 for cement mortar, cement

concrete and RCC works inter-alia provides that RMC manufacturers/ suppliers shall

along with each batch of concrete delivered to the placement contractor, give him a

concrete delivery tickets to the Engineer-in-Charge for his record and also get

duplicate copies of each delivery tickets duly received and signed from the

contractor. Further R.M.C. as supplied by the manufacturer and as placed by the

contractor shall in no way be different from the specifications of concrete as

approved by the Engineer-in-Charge.

It was noticed that three Engineering divisions released payments amounting

to ` 93,78,908 as detailed in Annexure ‘B1’ to the contractors during 2008-09 to

2011-12 against 32 work orders towards providing and laying Ready Mix Concrete

without production of delivery tickets/challans of R.M.C. manufacturers which is

violation of ibid provisions. In the absence of delivery tickets/challans authenticity of

quantity of R.M.C procured from the R.M.C. manufacturers and provided and laid on

works could not be verified in Audit. The Division-wise detail is as under:

Division No. of cases

Amount (`)

M-I, Central Zone 4 10,37,123 M-II, Central Zone 23 72,43,100 M-III, Central Zone 5 10,98,685 32 93,78,908

(B) Further in terms of Section 10.5 of CPWD Works Manual-2007 in case of

works where R.M.C is stipulated to be used from an approved

sources/manufacturers, the computerized dispatch slip that are sent with each

dispatch of R.M.C shall be kept on record.

33

It was further noticed that above Divisions released payments amounting to

` 1,58,31,780 to the contractors against 51 work orders who produced manual

delivery challans instead of computerized delivery challans/batching mix slips in

contravention of ibid provision. This has resulted in irregular payment as detailed in

Annexure ‘B2’. The Division-wise break up is as under: -

Division No. of

cases Amount

(`) M-I, Central Zone 18 57,02,603 M-II, Central Zone 13 38,02,116 M-III, Central Zone 20 63,27,061 51 1,58,31,780

The irregularity was brought to the notice of the department during May,

2012 to April, 2013, but no reply has been received so far (October, 2013).

(MCA/RS/DP-13(S)/2011-12)

34

16. Irregularities in the execution of work- “Construction of Grade Separator at Dabri intersection of Pankha Road”- ` 65.06 lakh.

1. Non effecting of recovery of balance amount of Secured Advance and

incorrect calculation of escalation amount has resulted in excess payment of escalation amount of ` 37,00,690.

2. Incorrect application of labour rates under clause 10 CC resulted in excess payment of ` 22,69,746.

3. Undue/extra payment of ` 5,35,867 was made by wrongly including the items of centering shuttering separately in the bill of quantities.

The Executive Engineer (Project) West-I awarded work “Construction of Grade

Separator at Dabri intersection of Pankha Road and Road leading to Dwarka near

Janakpuri, Delhi” to M/s DRA- Brahamputra Consortium Ltd. (J.V.) at a contractual

cost of ` 109.838 crore with completion period of 30 months vide work order

No.EE(PR)West-I/2007-08/46 dated 31.1.2008. The scope of work included

construction of flyovers, remodeling & covering of Pankha Road Drain and surface

level development works. The work was started on 20.2.2008 and required to be

completed on 19.8.2010, but as per 41st Running Account Bill for ` 85,82,60,041

passed for payment in February, 2013, the work was shown ‘In Progress’.

A review of Running Account Bills and Escalation Bills vide which the

payments were released to the contractor disclosed the following irregularities.

1. Undue and excess payment on account of price escalation under clause 10 CC- ` 37 lakh.

Section 32.10 on Clause 10 CC of Forms No. 7 & 8 of CPWD Works Manual,

2007 provides that:

1. Variation in contract amount due to variations in price of materials, POL

and/or wages of Labour required for execution of work (not for the

materials supplied or services rendered at fixed price in accordance with

Clause 10 and 34), subject to certain conditions.

2. It will be applicable in contracts where the stipulation period of contract is

more than 18 months.

35

3. Payment under this clause is applicable for work done during the

stipulated period of the contract including the justified period extended

under the provision of Clause 5 of the contract without any action under

Clause 2.

4. The contractor shall prepare the statements of escalation or de-escalation

at the end of every three months. The first statement of escalation shall

be prepared at the end of three months, excluding the month in which the

work was awarded. For subsequent statements, cost of work done during

every quarter shall be taken into account.

5. According to Para 32.10.2 of CPWD Works Manual 2007 which deal with

the calculation of cost of work for which escalation/de-escalation is

applicable, the cost of work is computed as per the following formula/

guidelines :-

a- Gross value of work done upto this quarter. ……………………………….(A)

b- Gross value of work done upto the last quarter. ………………………….(B)

c- Gross value of work done since previous quarter (A – B). ………………(C)

d- Full assessed value of secured advance fresh paid in this quarter…. .(D)

e- Full assessed value of secured advance recovered in this quarter….. (E)

f- Full assessed value of secured advance for which escalation is payable in this quarter (D – E). … .…………… ………………………………………….(F)

g- Advance payment made during the quarter. ………………………………(G)

h- Advance payment recovered during the quarter. ………………………..(H)

i- Advance payment for which escalation is payable in this quarter (G –H)..(I)

j- Extra items/deviated quantities of agreement items paid as per clause 12 based on prevailing market rate during this quarter…………………(J)

M= C + F + I – J

N= 0.85 M

k- Less cost of materials supplied by the department as per clause 10 & recovered during the quarter…………………………………………………...(K)

l- Less cost of services tendered at fixed charges as per clause 34 & recovered during the quarter……………………………………………………(L)

36

m- Cost of work for which escalation/de-escalation is applicable

W= N – (K + L)…………………………………………………………………….(M)

Further clause 10 B of N.I.T. condition which deals with “Secured Advance on

Non-Perishable Materials” provides that when materials on account of which an

advance has been made under this sub-clause are incorporated in the work, the

amount of such advance shall be recovered/deducted from the next payment made

under any of the clause or clauses of this contract.

A test check of 34th Running Account Bill/7th Escalation Bill revealed the

following irregularities.

1- The payments of Secured Advance made to the contractor and recoveries

made thereagainst during the execution of work upto 34th Running Account

Bill/7th Escation Bill is as follows:-

Qtr. Period of escalation

Secured Advance paid (̀ )

Secured Advance recovered (`)

Secured Advance balance (`)

1st 2/08 to 4/08 - - -

2nd 5/08 to 7/08 - - -

3rd 1st Escalation

8/08 to 10/08

29,83,000

(IVth R.A.Bill)

- 29,83,000

4th 2nd Escalation

11/08 to 1/09

1,34,38,400

(7th R.A.Bill)

39,44,500 1,24,76,900

5th 3rd Escalation

2/09 to 4/09

4,39,20,617

(XIVth R.A.Bill)

4,51,67,809 1,12,29,708

6th 4th Escalation

5/09 to 7/09

3,52,02,000

(XVIth R.A.Bill)

3,51,66,376 1,12,65,332

7th 5th Escalation

8/09 to 10/09

6,04,88,200

(XIXth R.A.Bill)

3,31,31,200 3,86,22,332

8th

9th

6th Escalation

11/09 to 4/10

4,06,20,830

(XXIIIth R.A.Bill)

2,47,75,800 5,44,67,362

(to be recovered in Xth Qtr.)

19,66,53,047 14,21,85,685 5,44,67,362

10th 7th Escalation

May/10 to Aug/10

2,57,60,000

(34th R.A.Bill)

4,06,20,830

37

It would be seen from the above table that Secured Advance amounting to

` 5,44,67,362 was outstanding for want of recovery upto XXIII Running Account Bill/

6th Escation Bill passed for payment on 27.7.2010.

In the 7th Escalation Bill processed/passed for payment on 24.2.2012, the

department made the recovery of Secured Advance of ` 4,06,20,830 as against

` 5,44,67,362 which was to be actually effected in terms of the ibid provisions of

C.P.W.D. Manual.

2- Further, as per Section 32.10.2.3, the escalation amount should be calculated

on the formula given below.

M = C + F + I – J

N = 0.85 M

According to this, the escalation was payable @ .85 (or 85%) of cost of work

done. But the department did not apply this formula and released @ 1.00 (or

100%) of cost of work done to the contractor.

Thus non effecting of recovery of balance amount of Secured Advance of

` 5,44,67,362 and incorrect calculation of escalation amount (i.e. 1.00 instead of

0.85 or 100/85% of cost of work) has resulted in excess payment of escalation

amount of ` 37,00,690 as worked out below:-

All figures are in (`)

Cost of work on which escalation

Particulars Paid to be paid

A Gross Value of work done upto this quarter (upto25th R.A. Bill)

46,86,60,620 46,86,60,620

B Gross Value of work done upto last quarter (upto21st R.A. Bill)

41,86,10,724 41,86,10,724

C Gross Value of work done since previous quarter (A-B)

5,00,49,896 5,00,49,896

D Full value of Secured Advance fresh paid in 10th quarter (25th R.A. Bill)

2,57,60,000 2,57,60,000

E Full value of Secured Advance recovered in 10th quarter

4,06,20,830 5,44,67,362

38

F Full value of Secured Advance for which escalation is payable (D-E)

(-) 1,48,60,830 (-)2,87,07,362

G Less value of items paid on Market Rates (-) 52,000 (-) 52,000

H Total Value (C+F+G) 3,51,37,066 2,12,90,534

I 85% Cost of work on which escalation was payable (Hx.85)

3,51,37,066 1,80,96,954

Amount of escalation paid/was to be paid components wise is as under

All figures are in (`)

Components Factor (on ‘I’ above)

Escalation paid (worked out by the department

based on ` 3,51,37,060)

Was to be paid (worked out

proportionately based on

` 1,80,96,954)

A Cement 0.15 34,303 17,667

B Steel 0.25 9,26,290 4,77,075

C Material 0.21 15,51,755 7,99,214

D POL 0.05 2,78,072 1,43,218

E Bitumen 0.04 6,27,473 3,23,173

F Plant & Machinery 0.10 5,50,537 2,83,548

G Labour 0.20 36,62,469 18,86,314

H Total 76,30,899 39,30,209

I Escalation excess paid-` (76,30,899-39,30,209)

37,00,690

2. Incorrect application of labour rates under clause 10 CC resulted in excess payment to contractor- ` 22.70 lakh.

Item No.vii (b) given below the item No. vi for computation of escalation

amount on account of labour under clause 10 CC as given in tender document and

general conditions of contract provides that the escalation for labour also shall be

paid at the same quarterly interval when escalation due to increase in cost of

material and/or POL is paid under this clause. If such revision of minimum wages of

an unskilled male mazdoor takes place during any such quarterly intervals, the

escalation compensation shall be payable at revised rates only for work done in

subsequent quarters.

39

The department while calculating the escalation amount on account of labour

for the 7th quarter (August, 2009 to October, 2009) applied the rates of labour

prevalent during 7th Qr. itself instead of previous Qr. (i.e. 6th). Similarly, while

calculating the escalation of 8th & 9th Qr. (November, 2009 to April, 2010) as

combined quarter, the department applied the rates of labour prevalent during the

9th Qr. itself instead of previous Qr. (i.e. 7th). This has resulted in undue and excess

payment of ̀ 22,69,746 as detailed below:

Base Index of labour at the time of N.I.T.- ` 133.45

S.N. Qtr.No. Period of Qtr. 85% amount taken for

computation of escalation on

all items including

advances & overhead in 10

CC bill

(`)

Labour index/rate

paid on amount in Col.No.4

(`)

Amount of escalation

paid on value of Col.4 on

account of labour

(`)

Labour index/rate

due on amount in Col.No.4

(`)

Amount of escalation

due on value of Col.4 on

account of labour

(`)

Excess amount paid on

account of incorrect

application of labour

rate

(`)

1 2 3 4 5 6 7 8 9

1 7 Aug.,2009 to Oct., 2009

8,61,26,236 152.00 23,94,367 151 (6th Qr.)

22,65,291 1,29,076

2 8 & 9 Nov.,2009 to Apr.,2010

5,60,14,216 177.50 36,97,903 152 (7th Qr.)

15,57,233 21,40,670

22,69,746

3. Undue/extra payment towards centering, shuttering cost- ` 5.36 lakh.

In case, estimates are prepared on D.S.R. based, then items for –Centering

Shuttering are included therein, and if estimates are prepared on MORTH based

then the cost of Centering Shuttering stands included in the composite cost of

R.C.C./P.C.C./R.M.C. itself at various percentage rates depending upon the nature of

work in the shape of ‘Form Work’ and no separate items for centering shuttering are

taken therein.

It was noticed that various items of concrete works were found taken from

MORTH Data Book in the schedule of quantities which inter-alia included the

component/cost of centering shuttering in the cost of concrete itself, but the

department wrongly included the items of centering shuttering separately in the bill

of quantities based on D.S.R. 2007 which were not required. This has resulted in

40

undue/extra payment to the contractor amounting to ` 5,35,867 upto 41st Running

Account Bill passed for payment on 15.2.2013 as detailed below:-

S.N. Item of work executed Quantity

(Sqm.) Rate per sqm.

(`) Amount

(`)

1. Centering Shuttering in Walls

885.73 270 2,39,147

2. Centering Shuttering in suspended floor

945 240 2,26,800

3. Centering Shuttering in foundation footings

384.14 240 92,194

4. Centering Shuttering in Colums, Pillars, Piers

64.48 270 17,410

5,75,551

Rebate @ 6.895% (-) 39,684

Net Amount 5,35,867

The matter was brought to the notice of the department in April, 2013 but no


(MCA/RS/DP-21(S)/2011-12)

41

17. Non-enforcement of revised provisions in regard to Quality Assurance Audit/Third Party Testing charges of CPWD Manual for implementation in erstwhile M.C.D. resulting into irregular re-imbursement of Quality Assurance Audit/Third Party Testing charges to contractors - ` 30.65 lakh.

Irregular re-imbursement of Quality Assurance Audit/Third Party Testing charges to contractors amounting to ` 30,65,313 due to non-enforcement of revised provisions in regard to Quality Assurance Audit/Third Party Testing charges of CPWD Works Manual 2010 for implementation in erstwhile M.C.D.

With a view to improving the quality of works, it had been decided by erstwhile

Corporation vide Resolution No. 573 dated 13.2.2003 that hence forth, in all the works

of MCD, quality assurance/audit would be carried out by selected organizations. The

name of selected agencies/organizations were circulated, vide Circular No. D-131/

DIR(T)/03 dated 8.5.2003 with the direction to incorporate this condition in NITs. Later

on vide Circular No. D/EE(P)-III/410 dated 27.7.2005 it was clarified that (i) 1%

weightage for testing charges was to be added while working out the justification.,& (ii)

Testing charges alongwith Service Tax charged, if any, was to be paid by the

Contractor. The rates of testing charges to be added in working out the justification

were further revised and circulated with name of some new agencies vide Circular

No.SE/QC/06-07/D-2816 & 2817 dated 20.2.2007 each for implementation in MCD.

As per Section 20.4.3.1 of CPWD Works Manual, 2010 though the contractor’s

profit and overheads were increased to 15% from earlier 10%, no change has been

made in contractor’s profit which remains @7.5% as applicable earlier whereas the

contractor’s overheads have been increased from 2.5% to 7.5% on account of seven

factors, mentioned therein. One of these factors at S.No. 4 thereof states about “Cost

of Quality Assurance set up enhancing testing lab.” Before enhancement of overhead

charges from 2.50% to 7.5%, a weightage for expenditure to be incurred by contractor

on account of Testing Charges/Third Party Audit was being considered/ added up in the

justification. But after enhancement of overhead charges an inclusion of these

stipulations in Section 20.4.3.1 of CPWD Works Manual 2010, the consideration of

weightage for testing charges in justification was stopped and since then no weightage

for Testing Charges is being given in justification and the expenditure of Third Party

Audit is to be borne by the Contractor. But no such Order/Circular for stoppage of

giving weightage in justification or for re-imbursement of testing charges in cases where

it was not considered in justification, was issued to date as a result of which the

42

contractors were quoting their rates as per the NIT conditions prevailing since 8.5.2003

and getting the re-imbursement of Quality assurance Audit/Third Party testing charges

as if the element on this account was not added up in computing the justification of

rates.

The Executive Engineer (M-III)/Najafgarh Zone and Executive Engineer (M-I)/West

Zone awarded 9 work orders relating to construction of re-modeling of outfall drain,

providing CC payment, Improvement and Strengthening of Road etc. to 4 contractors

during March, 2011 to February, 2012. A scrutiny of the record disclosed that the

department computed the justification of rates in respect of these works in consonance

with the revised provisions contained in Section 20.4.3.1 of CPWD Works Manual, 2010

and accordingly added 15% towards contractor’s profit & overheads. The department

did not add element on account of Quality Assurance audit/third party testing charges

and rightly so since these charges were deemed to be included in the 15% allowed

towards contractor’s profits and overheads. However, the department had allowed/

re-imbursed the amount of IIIrd party quality assurance fee amounting to ` 30,65,313 to

the contractors by obtaining the orders from Engineer-in-Chief, SDMC. This has resulted

in irregular re-imbursement of Quality Assurance Audit/Third party testing charges to

contractors amounting to ` 30,65,313 as detailed below:-

S. N. Work Order No. & Date Name of contractor Amount (`)

EE(M)-III/NGZ 1 54/25.4.2011 Naresh Kumar 3,52,563 2 55/25.4.2011 Esssco Traders 1,70,928 3 56/25.4.2011 Naresh Kumar 4,43,927 4 66/26.4.2011 Naresh Kumar 2,07,019 5 312/22.3.2011 Essco Traders 4,29,779 Total 16,04,216

EE(M)-I/WZ 6 730/31.3.2011 Essco Traders 1,92,737 7 731/31.3.2011 Dabas Const. Co. 1,84,597 8 1105/1.2.2012 R.P.Singhal, & Co. 1,72,432 9 1022/24.1.2012 R.P.Singhal, & Co. 9,11,331 Total 14,61,097 Grand Total 30,65,313

The matter was brought to be notice the department in March, 2013 and in

April, 2013, but no reply has been received so far (October, 2013).

(MCA/RS/DP-19(S)/2011-12)

43

18. Excess payment due to non deduction on account of decrease in price of steel re-inforcement bars under clause 10 CA- ` 24.77 lakh.

No recovery on account of decrease in price of steel re-inforcement bars during the period of completion of work, was made from the bills of the contractors.

In terms of clause 10 (CA) regulating payment due to increase/decrease in

prices of cement, steel re-inforcement bars and bitumen incorporated in the N.I.T. in

pursuance of Planning department’s letter No.D/EE(P)-III/27/2006-07 dated

19.5.2006, if after submission of the tender, the prices of bitumen, cement & steel

re-inforcement bars incorporated in the work (not being a material supplied from

MCD Store) increase (s) beyond the price (s) prevailing at the time of the last

stipulated date for receipt of tender for the work, then the amount of contract shall

accordingly be varied and provided further that any such increase shall not be

payable if such increase has become operative after the stipulated date of

completion of work (including extension, if any) in question.

In the event, the prices of bitumen, cement & steel re-inforcement bars

required for execution of work decrease, the M.C.D. shall in respect of the quantity

of bitumen, cement & steel re-inforcement bars incorporated in the work be entitled

to deduct from the dues of the contractor, such amount as shall be equaling to the

amount worked out on the basis of decrease in ex-refinery price of bitumen (basic

cost + excise + sales tax) and whole sale price index of cement & steel

re-inforcement bars as published by Economic Advisor to Government of India,

Ministry of Commerce & Industry and base price of cement and/or steel

re-inforcement bars prevailing as on the last stipulated date of receipt of tender and

for the period under consideration.

The Executive Engineer (Project-II), West Zone, awarded 3 works relating to

construction of Community Halls/Pucca School Buildings at M.C. Primary Schools. It

was noticed that though the rates/Whole Sale Price Index of steel reinforcement

bars used in the execution of the respective works were found lower during the

period of completion of work as compared to the rates applied by the department at

the time of working out the justification for the award of work in each case but the

44

department did not effect recovery on this account while passing the bills for

payment. Thus an amount of ` 24,77,488.05 remained un-recovered from the

contractors as per details given below:-

Bill-wise Qty. of reinforcement (MD Bar) used

(kg.)

Price of steel bar

taken in JOR

(per Kg.)

(`)

Price Index Difference (per Kg.)

(`)

Amount recoverable on account of price

de-escalation at the time

of hash submission

at the time of execution

Qty. X Rate X diff. / Price Index

(Hash sub.)

(`)

W.O. No.1/23.4.2009 14.11.2008

Ist R.A. Bill 131728.86 Dt. 30.6.2009 IInd R.A. Bill 28511.44 Dt. 30.7.2009

IIIrd R.A. Bill 67414.39 Dt. 30.9.2009

IVth R.A. Bill 112479.60 Dt.30.11.2009

Vth R.A. Bill 36968.98 Dt. 14.1.2010

VIth R.A. Bill 16520.91 Dt. 29.3.2010

VIIth R.A. Bill 3228.67 Dt. 25.5.2011

40.50

40.50

40.50

40.50

40.50

40.50

40.50

326.10

326.10

326.10

326.10

326.10

326.10

326.10

June 2009 282.00

July 2009 282.00

Sep2009 302.20

Nov 2009 302.20

Jan 2010 302.20

Average Rate 1/10 to 3/10

302.80

March, 2011 383.23

44.10

44.10

23.90

23.90

23.90

23.30

-57.13

7,21,479.09

1,56,157.18

2,00,103.52

3,33,868.84

1,09,733.59

47,807.28

-22,908.26

15,46,241.24

W.O. No.45/2.12.2008 29.8.2008

Ist R.A. Bill 22874.60 Dt. 27.2.2009

IInd R.A. Bill 23122.22 Dt. 30.3.2009

IIIrd R.A. Bill 36984.16 Dt. 25.5.2009

IVth R.A. Bill 3541.86 Dt. 29.6.2009

Vth R.A. Bill 9767.86 Dt. 30.9.2009

VIth R.A. Bill 148.18 Dt. 22.2.2010 VIIth Final Bill Nil Dt. 27.8.2010

43.50

43.50

43.50

43.50

43.50

43.50

43.50

335.80

335.80

335.80

335.80

335.80

335.80

335.80

Average Rate Dec/08 to Feb/09

303.03

Mar 2009 282.00

May 2009 282.00

June 2009 282.00


295.46

Feb 2010 302.20

--

32.77

53.80

53.80

53.80

40.34

33.60

--

97,104.31

1,61,146.30

2,57,754.70

24,684.38

51,043.90

644.97

--

5,92,378.56

45

W.O. No.10/25.5.2009 29.12.2008 Ist R.A. Bill 44334.87 Dt. 30.9.2009 IInd R.A. Bill 49543.92 Dt. 31.12.2009 IIIrd R.A. Bill 0.00 Dt. 29.1.2010 IVth R.A. Bill 17763.14 Dt. 26.5.2010

Vth R.A. Bill 2388.07 Dt. 27.9.2010

40.50

40.50

40.50

40.50

40.50

326.10

326.10

326.10

326.10

326.10


292.10 Dec 2009

302.20

0.00 Average Rate 2/10 to 5/10 322.00


341.09

34.00

23.90

326.10

4.10

-14.99

1,87,209.80

1,47,059.30

0.00

9,044.98

-4,445.83

3,38,868.25 Grand Total 24,77,488.05 The irregularity was brought to the notice of the department in September,

2012. The Executive Engineer (Project-II), West Zone intimated (15.5.2013) that an

amount of ` 19,26,467 has been recovered from the contractors against work order

Nos. 1 dated 23.4.2009 and 10 dated 25.5.2009 vide vouchers No.1 dated

11.12.2012 (` 15,99,134) and 34 dated 16.9.2011 (` 3,60,333). As regards

remaining recovery of ` 5,92,380 against work order No.45 dated 2.12.2008, the

same has also been made from security release bill passed on 14.5.2013 against

another work order No.55 dated 6.1.2010 of the same firm (M/s Rakesh Kumar

Gupta). Voucher No. will be intimated after release of security from Head Quarter.

But voucher No. has not been intimated so far (October, 2013).

(MCA/RS/DP-5(S)/2011-12)

46

19. (A). Overpayment due to incorrect computation of quantity of BM and AC mix ` 15.35 lakh.

(B). Overpayment on account of less use of bitumen ̀ 4.24 lakh.

(A). In four cases incorrect computation of quantities of BM & AC mix due to wrong application of yield density resulted in overpayment to the contractors amounting to ` 15,34,941

(B). No recovery for less use of bitumen was made from the contractor which resulted into overpayment of ̀ 4,24,262.

(A) Ministry of Road Transport and Highways (MORT&H) has revised

“Specifications for Road and Bridge Work-Fourth Revision 2001”, due to which

additional conditions for Dense Carpet works in MCD were also circulated for

immediate implementation vide Circular No.250/EE/P-III dated 15.7.2003.

Conditions No. 7,9,13,15 & 21 of additional conditions for dense carpet works

provide that :-

7. The job Mix shall be got designed by the Contractor from Municipal Laboratory

or as per direction of Engineer-in-Charge from CRRI etc. at his own cost. The

mix shall be designed in such a proportion that lab density of 2.2MT/cum. for

BM and 2.3MT/cum. for AC is achieved. Lab density will be defined in the job

Mix.

9. The bituminous work of BM and AC will be acceptable within variation of plus

minus 0.3% of the bitumen required as per JMF. Recovery for less use of

bitumen required as per JMF upto 0.3% than the theoretical consumption shall

be made at the prevailing Market Rate.

13. Measurement: Before applying the tack coat, the existing levels of the road

surface shall be taken jointly by the Engineer-in-Charge or his representative

and contractor at 3 metre intervals both ways or closer as directed by the

Engineer-In-Charge. These levels shall be recorded in the level book as well as

on the plan and the record shall be signed by the contractor. Levels of the

consolidated bituminous course shall again be taken and recorded in the level

book as well as on plan. The unit for measurement shall be cubic metre for

asphaltic concrete and bituminous macadam mix and consolidated quantity

shall be computed on the basis of daily tonnage laid and the field density as

47

well as levels and payment shall be restricted to the lower of the two

quantities. The necessary arrangement for taking levels will be made by the

contractor at his own cost.

15. Material will be tested from Municipal Laboratory or CRRI by the Contractor and

the results will be binding on the Contractor.

21. The field density of leveling course, wearing course shall not be less than 95%

of the laboratory density for leveling course and 98% for the wearing course

respectively.

Three Engineering divisions awarded 4 works relating to Improvement &

Strengthening of Roads to M/s C. Prakashan & Co., M/s. Vinod Kumar and M/s

Radheshyam in which the department did not make applicable the above

provisions. As a result, the department computed the laid quantity of BM and AC

mix based on actual yield density as against desired/required density as per Job Mix

Formula. Thus incorrect computation of quantities of BM & AC mix due to wrong

application of yield density resulted in overpayment to the contractors amounting to

` 15,34,941 as detailed below:-

S. N.

Work Order No. & Date

Item Qty. Laid (in MT)

Density to be

achieved as per JMF

Qty. payable (in cum)

(3/4)

Qty. paid (in cum.

3/4actual)

Excess Qty. paid in cum. (6-5)

Rate / cum

(`)

Amount

(`) EE(Proj.)-I/West Zone, SDMC 1 64/14.11.2011 BM 3384.02 2.257 1499.34 1522.26 22.92 6190 1,41,875 AC 5328.45 2.356 2261.65 2307.75 46.10 8190 3,77,559

Total 5,19,434 2 65/14.11.2011 BM 5923.87 2.257 2624.67 2678.28 53.61 6190 3,31,846 AC 4859.44 2.356 2062.58 2103.86 41.28 8190 3,38,083

Total 6,69,929 EE (Proj.)-II/West Zone, SDMC 3 80/23.1.2012 BM 2805.98 2.243 1251.00 1289.68 38.68 5930 2,29,372

EE (M)-I/West Zone, SDMC 4 500/5.8.2011 BM 554.44 2.235 248.07 258.69 10.62 5575 59,206 DBC 439.71 2.359 186.40 194.00 7.60 7500 57,000 Total 1,16,206

Grand Total 15,34,941

(B) Further, in two works (work order No. 64 & 65 dated 14.11.2011), though the

contactor used less bitumen than that of what required as per DSR but the

department did not make recovery for less use of bitumen in terms of additional

48

condition No. 9 mentioned above. This has further resulted in overpayment to the

contractor amounting to ` 4,24,262 as detailed below:

S. N.

Work Order No. & Date

Item Qty. of mix

brought (MT)

% age of bitumen

to be used as

per item/DSR

% age of bitumen actually used as

per average of samples

Qty. of bitumen as per item / DSR (MT)

Actual bitumen used as

per samples

(MT)

Less bitumen used as

per samples

(MT)

Rate / MT as per

10CA bill

(`)

Amount

(`)

1 64/

14.11.2011 BM 3384.02 3.5 3.410(1no) 118.440 115.395 3.045 43065 1,31,133

DBC 5328.45 5.5 5.473(3no) 293.064 291.626 1.438 43065 61,927 2 65/

14.11.2011 BM 5923.87 3.5 3.431(6no) 207.335 203.248 4.087 43606.66 1,78,220

DBC 4859.44 5.5 5.475(4no) 267.269 266.054 1.215 43606.66 52,982 Total 4,24,262

The irregularity was brought to the notice of the department during

September, 2012 to April, 2013, but no reply has been received so far (October,

2013).

(MCA/RS/DP-7(S)/2011-12)

49

20. Irregularities in testing of Ready Mix Concrete samples ` 11.32 lakh.

Payments amounting to ` 11,31,812 released to the contractors towards providing & laying RMC without examining the authenticity of delivery challans and testing results creates suspicion about the actual execution of this item of work (P/L/ RMC).

According to provisions contained in CPWD specifications for providing and

laying Ready Mix Concrete/Cement Concrete (RMC/CC), samples of C.C. cubes each

of size (15cmx15cmx15cm) for 25 cum or part thereof is required to be taken and

got tested from Laboratory. However, in M.C.D. this is being done for execution of

every 20 cum or part thereof. These samples are lifted on the very day of providing

and laying of Ready Mix Concrete/Cement Concrete and sent on its 7th day for 7

days testing which are got tested in the Municipal Laboratory on the very day of its

receipt. In case of failure of 7 days testing, repeated samples for 28 days testing

are sent on its 28 days and got tested in Laboratory on the very day of their receipt.

The Executive Engineer (M-I), Central Zone awarded three works for

development of roads by providing RMC during 2010-11. All three works were

completed and payments thereagainst released to the respective contractors as

detailed below.

Audit observed following glaring irregularities in the execution of works.

1. RMC challans issued by M/s NPEE Construction, Gurgaon against Work Order

No.135 dated 26.11.2010 were manual instead of computerized. Though

these challans were issued about 9 months before issue of work order, but

S.N Work Order No. & Date

Name of Contractor

Qty. of RMC provided and laid (M-20)

cum and Rate - `/cum + C.E.

Details of delivery Challans (RMC M-20)

Date of Amount

(`)

Sending sample

Testing of sample in Mpl.

Lab. (for 28 days)

1. 135/26.11.2010 M/s Usha Builders

94.46 4471.25 -10.10%

159,162,164,167,169,172,174, 175,195,197, dated 21.2.2010 199,201,203 dated 22.2.2010

28.2.2011 &

1.3.2011

28.2.2011 &

1.3.2011

3,79,696

2. 90/31.05.2011 M/s Manmeet Singh Khurana

84.58 4471.25 -2.22%

07 to 018 dated 20.5.2011 18.7.2011 18.7.2011 3,69,783

3. 183/28.02.2011 M/s Rajeev Enterprises

84.14 4544.01

180,181,183,187,189,190, 198,199 dated 22.3.2011

210,212,214 dated 28.3.2011

29.3.2011 &

5.4.2011

29.3.2011 &

5.4.2011

3,82,333

Total

11,31,812

50

the samples of C.C. cubes were sent on 28.2.2011 and 01.03.2011 and were

tested on the same day for 28 days testing i.e. after one year of procuring

RMC.

2. RMC challans issued by M/s Shiv Raj. Int. Pvt. Ltd. Faridabad against Work

Order No. 90 dated 31.05.2011 were computerized but these were also

issued 11 days before issue of work order. The samples of C.C. cubes were

sent for testing on 18.07.2011 for 28 days testing i.e. after two months of

procuring RMC.

3. The samples of RMC against Work Order No. 183 dated 28.02.2011 were sent

on 7th day (29.3.2011 & 5.4.2011) for 28 days testing rather these samples

should have been sent on 19.4.2011 & 25.4.2011 for 28 days testing.

Thus payments amounting to ` 11,31,812 released to the contractors towards

providing & laying RMC without examining the authenticity of delivery challans and

testing results creates suspicion about the actual execution of this item of work

(P/L/ RMC).

The irregularity was brought to the notice of the department in May, 2012,

but no final reply has been received so far.

(MCA/RS/DP-14(S)/2011-12)

51

21. Payment of Ready Mix Concrete without verifying challans- ` 9.53 lakh.

Payment amounting to ` 9,52,926 was released on the basis of manual delivery challans without verification as the challan Nos. of succeeding dates were found in descending order in comparison to challan Nos. of preceding dates.

Para 5.8.8.9.4 & 5 of C.P.W.D. specification 2002 for cement mortar, cement

concrete and R.C.C. works inter-alia provides that Ready Mix Concrete (R.M.C.)

manufacturer/supplier shall, alongwith each batch of concrete delivered to the

placement contractor, give him a concrete delivery ticket. The supplier shall give

copies of all such delivery tickets to the Engineer-in-Charge for his record and also

get duplicate copies of such delivery tickets duly received and signed from the

contractor. Further R.M.C. as supplied by the manufacture and as placed by the

contractor shall in no way be different from the specifications of concrete as

approved by the Engineer-in-charge.

Further in terms of Section 10.5 of C.P.W.D. Works Manual, 2007 in case of

works where R.M.C. is stipulated to be used from an approved sources/

manufacturers, the computerized dispatch slips that are sent with each dispatch of

R.M.C. shall be kept on record.

The Executive Engineer M-IV, West Zone & Executive Engineer (M-IV),

Central Zone awarded 10 work orders during 2008-09 to 2011-12 for improvement

of Roads/lanes by providing & laying R.M.C. The respective contractor procured the

R.M.C. from M/s Vikas Emark Infrastructure, J.P. Concrete, NPEE Construction & C.S.

Concrete Pvt. Ltd. and laid it on the roads/lanes. The manual delivery

challans/delivery tickets submitted by the contractors disclosed that challan No. of

succeeding dates were found in descending order in comparison to challan No. of

preceeding dates while challan No. 000701 to 000703 of C.S. Concrete Pvt. Ltd.

were shown used twice in two different works by recording different dates as per

52

the following:-

S.N. Work Order No. & Date

Quantity of R.M.C.-M-20 grade

provided & laid (M3)

Challan No. & Date vide which R.M.C. supplied

Rate + C.E. (Per cum)

(`)

Amount

(`)

Executive Engineer (M-IV) West Zone

RMC supplied by M/s Vikas Emark Infrastructure 1 209/21.09.2011 82.32 010698,010700, 702,

703,705,708,709,711,714, 715,717 719/ 23.12.2011

4160.25 (-) 14.50%

-

2 129/2.08.2011 29.55 010779 to 010783 22.12.2011

4160.25 (-) 15%

1,04,495

3 133/2.08.2011 70.89 010722 to 010724 010726 to 010727 730,732,735,738,739 & 010741/ 23.12.2011

4160.25 (-) 10%

-

4 130/2.08.2011 55.96 010771 to 010778/ 22.12.2011 4160.25 (-) 15%

1,97,886

Executive Engineer (M-IV) Central Zone

RMC supplied by M/s J.P. Concrete 5 278/22.03.2011 63.42 4266,4269,4270,4271,4273,4274,

4275/ 10.7.2011 4544.01

URM -

6 7/11.04.2011 89.16 2871,2872,2875,2876,2880,2883, 2884,2886,2889 dated 26.7.2011 2918,2920,2923,2924 dated 29.7.2011

4544.01 URM

4,05,144

RMC supplied by NPEE Construction

7 159/25.02.2009 75.89 4,7,11,17,31,34,35,38,40 & 41 Dated 27.07.2010

4323.95 (-) 5.55%

-

8 158/25.02.2009 21.00 47,50,52, dated 23.7.2010 4323.95 (-) 1.99%

88,996

RMC supplied by C.S. Concrete 9 13/11.04.2011 86.91 000701 to 000703, 000705 to

000708 / 31.10.2011 000715 to 000718, 000721 & 000722 / 1.11.2011

4544.01 URM

-

10 197/17.10.2011 34.42 000700 to 000703, (used twice) 000704 dated 11.11.2011

4544.01 URM

1,56,405

Total 9,52,926

As the challans Nos./tickets Nos. of succeeding dates cannot be in

descending order, and also use of same challans Nos. for two different works, the

veracity of execution of R.M.C. works aggregating to ` 9,52,926 puts a question

mark. Further acceptance of manual delivery challans instead of computerized

delivery challans was also in disregard of Section 10.5 of C.P.W.D. Works Manual.

The irregularity was brought to the notice of the department during October,

2012 to Jan, 2013 but no reply has been received so far (October, 2013).

(MCA/RS/DP-8(S)/2011-12)

53

22. Excess payment due to non deduction on account of decrease in price of bitumen under clause 10 CA- ` 3.21 lakh.

No recovery on account of decrease in price of bitumen under clause 10 CA during the period of completion of work, was made from the bills of the contractor.

In terms of clause 10 (CA) regulating payment due to increase/decrease in

prices of cement, steel re-inforcement bars and bitumen incorporated in the N.I.T. in

pursuance of Planning department’s letter No.D/EE(P)-III/27/2006-07 dated

19.5.2006, if after submission of the tender, the prices of bitumen, cement & steel

re-inforcement bars incorporated in the work (not being a material supplied from

MCD Store) increase (s) beyond the price (s) prevailing at the time of the last

stipulated date for receipt of tender for the work, then the amount of contract shall

accordingly be varied and provided further that any such increase shall not be

payable if such increase has become operative after the stipulated date of

completion of work (including extension, if any) in question.

In the event, the prices of bitumen, cement & steel re-inforcement bars

required for execution of work decrease, the M.C.D. shall in respect of the quantity

of bitumen, cement & steel re-inforcement bars incorporated in the work be entitled

to deduct from the dues of the contractor, such amount as shall be equaling to the

amount worked out on the basis of decrease in ex-refinery price of bitumen (basic

cost + excise + sales tax) and whole sale price index of cement & steel re-

inforcement bars as published by Economic Advisor to Government of India, Ministry

of Commerce & Industry and base price of cement and/or steel re-inforcement bars

prevailing as on the last stipulated date of receipt of tender and for the period under

consideration.

The Executive Engineer-(M)-I, West Zone awarded a work relating to

strengthening of road by providing dense carpeting in Punjabi Bagh/Shivaji Park,

West Zone vide work order No.EE(M-WZ)-I[EE-VII]/SYS/2011-12/1163 dated

15.2.2012 at a contractual amount of ` 75,04,421 with a completion period of 4

months. First R.A. bill amounting to ` 74,54,421 after withholding ` 50,000 was

passed for payment on 30.4.2012.

54

It was noticed that though the rates of bitumen used in the execution of the

work were found lower during the period of execution of work as compared to the

rates applied by the department at the time of working out the justification of rates

for the award of work but the department did not effect recovery on this account

while passing the bill for payment. Thus an amount of ` 3,21,108 remained

unrecovered from the contractor as per details given below:-

S. N. Rate of bitumen Difference in

rates

(`/PMT)

Quantity of bitumen used in the work

(MT)

Recoverable amount

(`)

as per justification of Rates excluding cartage ` 500

(`/PMT)

as per bill submitted by the contractor

(`/PMT)

1 45,802

43,992 1,810 14.830 26,842

2 45,802

43,607 2,195 13.840 30,379

3 45,802

43,607 2,195 14.140 31,037

4 45,802

43,607 2,195 14.250 31,279

5 45,802

43,233 2,569 14.075 36,159

6 45,802

43,233 2,569 14.340 36,839

7 45,802

43,233 2,569 12.910 33,166

8 45,802

43,233 2,569 7.4150 19,049

9 44,839

29,360 15,479 4.933 76,358

3,21,108

The irregularity was brought to the notice of the department in April, 2013,


(MCA/RS/DP-25(S)/2011-12)

55

23. Overpayment towards laying Water Bound Macadam- ` 2.83 lakh.

Payment for laying of water bound macadam was made on the basis of net quantity of coarse aggregate supplied and stacked at site instead of taking 80% of the net quantity of coarse aggregate resulting in overpayment of ̀ 2,82,528.

Section 404.2.6 of Specifications for Road & Bridge works of Indian Road

Congress, Ministry of Shipping, Road Transport & highways lays down the

approximate quantities of coarse aggregate (90-45 mm, 63-45 mm and 53-22.4

mm) required to be stacked for 100 mm/75 mm compacted thickness of Water

Bound Macadam (W.B.M.) base coarse for 10 sqm area in TABLE 400-9. Based on

its average requirement and least requirement, the percentage of stone aggregate

that gets reduced during compaction/W.B.M is indicated against each as per details

given in following table.

S. N.

Size Range Required quantity

(M3)

Average quantity required

(M3)

Compacted thickness

(M)

Percentage of Stone Aggregate reduce during compaction/WBM

Based on average

requirement

Based on least

requirement 1 90 mm - 45 mm 1.21 to 1.43 1.32 100 24.24% 17.31% 2 63 mm - 45 mm 0.91 to 1.07 0.99 75 24.24% 17.58% 3 53 mm - 22.4 mm 0.91 to 1.07 0.99 75 24.24% 17.58%

It would be seen from the above analysis that the net quantity of supply &

stacking of stone aggregate (i.e. after allowing 7.5% on account of void) is reduced

by 24.24% based on average requirement and 17.31% to 17.58% based on least

requirement during the course of compaction/ W.B.M. Thus it can be reasonably

expected that compaction would be around (24.24% + 17.31% = 20.77%).

2

Further, in terms of DSR-2002 & 2007 and also as per the approved item

No.10 & 11 circulated by the Planning department vide their letter No.D-37/EE(P)III/

2003 dated 14.1.2003, the payment of laying WBM is made on cubic metre basis

(code 17.6 of DSR-2002 refers). Thus, the department is required to work out and

record in the measurement book the quantity of laid/consolidated/ compacted WBM.

56

The records disclosed that four Engineering divisions awarded 13 work orders

relating to metalling and premixing of road and made payments for laying of WBM

without working out the quantity of the laid/consolidated/compacted thickness of

WBM. The department had adopted the net quantity of coarse aggregate stacked

as the quantity of compacted W.B.M. instead of taking 80% of the net quantity of

coarse aggregate as the quantity of compacted WBM.

Thus making the payment for laying WBM on the basis of net quantity of

supply and stacking of coarse aggregate instead of 80% thereof resulted into an

overpayment of ` 2,82,528 to the respective contractors in 13 cases as

detailed in Annexure ‘C’. The division-wise detail is as under:-

S. N. Divisions No. of Cases Amount (`)

1 EE(Pr.)-I/South Zone 2 58,019 2 EE(Pr.)-II/ South Zone 5 29,640 3 EE(Pr.)/Najafgarh Zone 3 1,21,592 4 EE(M)-I/West Zone 3 73,277 13 2,82,528

The irregularity was brought to the notice of the department during July, 2012

to April, 2013, but no reply has been received so far (October, 2013).

(MCA/RS/DP-6(S)/2011-12)

57

24. Overpayment towards providing & laying Ready Mix Concrete- ` 2.36 lakh.

While framing the estimates for ‘Development/Improvement of road/lane/ gali’ the rate of the item – providing and laying Ready Mix Concrete M-25 & M-20 grade not requiring re-inforcement of steel bars should have been taken as ` 4369.25 per cum (M-25) and ` 4221.95 per cum (M-20) but actually adopted rates were ` 4471.25 per cum & ` 4323.95 per cum respectively. This resulted in overpayment of ` 2,35,994 to contractors.

A test check of record of two Engineering divisions (M-II, South Zone, & M-IV,

Central Zone) disclosed that in preparing the estimates for ‘Development/

Improvement of road/lane/gali’, the department had been inter-alia including an

item relating to providing and laying Ready Mix Concrete M-25 & M-20 @ ` 4,471.25

per cum and ` 4323.95 per cum respectively based on rate provided in D.S.R.-2007

(Item No.16.75 & 16.76). However, an analysis of the said rate as available in Delhi

Analysis of Rates-2007 disclosed that in the computation of the rate of ` 4,471.25

per cum, labour components on account of Mason, Beldar & Bhisti were included as

under which were applicable for R.M.C.- M-25 grade with re-inforcement for steel

bars (Item No.5.37).

(`) Mason 24.91 Beldar 270.50 Bhishti 124.60

420.01

Since, in the pavement of R.M.C. for road/lane/gali etc., the steel bars (viz.

re-inforcement for R.C.C. work) were not used, the department should have

recomputed the rate of this item by including the labour component on account of

Mason, Beldar & Bhisti which was applicable in respect of providing & laying in

position C.C. all work (Item No.4.1.1) as under:

(`) Mason 14.66 Beldar 220.46 Bhishti 96.92

332.04

Based on above, the rate of this item viz. R.M.C.-M-25 grade not requiring re-

inforcement of steel bars works out ` 4,369.25 per cum [4471.25 – 102 (` 420.01 –

58

` 332.04 = ` 87.97 + 1% W.C. + 15% C.P. on account of labour component)] &

` 4221.95 (` 4,369.25 deduct ` 147.30 for using M-20)] and this should have been

taken into account while framing the estimates for such works, but this was not

done. This has resulted in an overpayment of ` 2,35,994 in 27 work orders as

detailed in the Annexure ‘D’. The division-wise breakup is as under:-

S. N. Name of division No. of cases Amount (`)

1 Ex. Engg. M-lV, Central Zone 08 63,097

2 Ex. Engg. M-II, South Zone 19 1,72,897

27 2,35,994

The irregularity was brought to the notice of the department during October,

2012 & March, 2013 but no reply has been received so far (October, 2013).

(MCA/RS/DP-10(S)/2011-12)

59

25. Irregular payment to the contractors towards hiring of tractor trolleys - `. 6.25 lakh.

In 19 cases payment of ` 6,24,948 was irregularly made to the contractors despite deficiencies like non-mention of registration No. of tractor trolleys and name of the drivers & beldars in the Muster Rolls and non-maintenance of log books indicating date-wise work done in each colony.

During the course of audit of DEMS department, Najafgarh Zone, it was noticed

that for lifting of garbage in Ward No. 135 and 133, the department engaged tractor

trolleys with driver, oil and four beldars @ ` 1186 ` 1254 & ` 2000 per day during the

period from 16.9.2009 to 15.11.2010. The department issued muster rolls for

recording attendance of tractor trolley, driver & labours/beldars and payment thereof

to the contractor.

A scrutiny of records disclosed the following irregularities:-

(i) Registration No. of the tractor trolleys which were got engaged and which

received the payment were not found mentioned in the muster roll.

(ii) Name of the drivers & beldars got engaged with the tractor trolleys were not

found mentioned in the muster roll.

(iii) No Log Book indicating date-wise work done in each colony/locality/area and

also mileage covered was placed on record.

The above deficiencies put question mark on the veracity of actual

engagement of tractor-trolleys with oil, drivers & four beldars for lifting of garbage.

Thus this has resulted in irregular payment amounting to ` 6,24,948 to the

contractors as detailed below.

S. N.

Ward No.

Name of Contractor Period Rate of tractor trolley

per day (̀ )

Payment made

(`)

Vr. No. and date vide which

payment made

1 135 Dharam Pal S/o Sh. Tulsi Ram

16.09.2009 to 15.10.2009

1,186 30,836 153-D/11.11.2010


16.10.2009 to 15.11.2009

1,186 30,836 154-D/11.11.2010


16.11.2009 to 15.12.2009

1,186 30,836 155-D/11.11.2010


16.12.2009 to 15.01.2010

1,186 32,022 162-D/11.11.2010


16.01.2010 to 15.02.2010

1,186 30,836 163-D/11.11.2010

60


16.02.2010 to 15.03.2010

1,186 28,464 164-D/11.11.2010


16.07.2010 to 15.08.2010

1,186 30,836 243-D/14.3.2011


16.08.2010 to 15.09.2010

1,186 32,022 246-D/14.3.2011

9 135 Ramesh Kumar S/o Sh. Prem Singh

16.12.2009 to 15.01.2010

1,186 32,022 156-D/11.11.2010


16.01.2010 to 15.02.2010

1,186 30,836 157-D/11.11.2010


16.02.2010 to 15.03.2010

1,186 28,464 158-D/11.11.2010


16.09.2009 to 15.10.2009

1,254 32,611 159-D/11-11-2010


16.10.2009 to 15.11.2009

1,254 32,611 160-D/11.11.2010


16.11.2009 to 15.12.2009

1,186 30,836 161-D/11.11.2010


16.03.2010 to 15.04.2010

1,186 32,022 235-D/14.3.2011


16.07.2010 to 15.08.2010

1,186 30,836 244-D/14.3.2011


16.08.2010 to 15.09.2010

1,186 32,022 245-D/14.3.2011

18 133 Radhey Shyam S/o Sh. Shiv Lal

16.10.2010 to 15.11.2010

2,000 48,000 230-D/14.3.2011

19 133 Raj Kumar S/o Sh. Chhattar Singh

16.10.2010 to 15.11.2010

2,000 48,000 231-D/14.3.2011

Total 6,24,948

The irregularity was brought to the notice of the department in March, 2012


(MCA/RS/DP-11(S)/2011-12)

61

26. Irregular payment to the contractor towards hiring of Bajaj GC Max (LMV small)- ` 3.41 lakh.

In 16 cases payment of ` 3,40,611 was irregularly made to the contractors despite deficiencies like the name of the Agency/Contractor which/who was to supply the vehicles for removal of garbage and malba was neither mentioned in the approval nor in the Office Order issued by the S.S., Log Books of the vehicles were not maintained daily, fake reading of meter were shown in the log book etc.

The Chief Engineer-I, circulated the rates of hiring of machinery/equipment to

be used by various departments of MCD vide No. CE-I/2009/D/1300 dated 5.3.2009.

In compliance of this circular, Dy. Commissioner, Najafgarh Zone approved

(23.7.2009) the proposal of the DEMS department to engage 3 Bajaj, GC Max LMV

whose registration Nos were (i) DL-1L-L4800 (ii) DL 1L J9890 and (iii) DL 1L J9915

with two Beldars/Safai Karamcharies on hire charges basis @ ` 1100 per day and

extra charges for additional mileage/distance more than 40 km., for removal of

garbage/malba from ward No. 148, Madhu Vihar during the period 1.8.2009 to

31.3.2010. The DEMS department issued work order/office order on 28.7.2009 to

the contractor for engaging 3 Bajaj, GC Max (LMV small) with the condition to

maintain daily log book and get it authenticated by S.I. daily.

A scrutiny of records relating to payments made to the contractor – M/s

Virender Kashyap and log books of the vehicles disclosed the following

irregularities.

1. The name of the Agency/Contractor which/who was to supply the vehicles for

removal of garbage and malba was neither mentioned in the approval nor in

the Office Order issued by the S.S. for engagement/hiring of the vehicles.

2. Two No. Bajaj GC Max vehicles (bearing Regn. Nos.DL-1L-L4800 &

DL-1L-J9890) with two Beldars/Safai Karamchari were engaged/hired during

the period from 1.8.2009 to 31.3.2010. The payment of ` 3,40,611 was

released to the contractor for the period from 1.8.2009 to 31.1.2010. No bill

for the residual period from 1.2.2010 to 31.3.2010 was submitted by the

contractor for payment.

62

3. Log Books of both the vehicles were not maintained daily. It appeared that

Log Books of both the vehicles viz. vehicle No. D1-1L-L-4800 and DL-1L-J-

9890 were prepared in one go by two different officials on one occasion/same

date as is evident from the expressions of entries made in both the Log

Books, date of submission of bills by the Contractor as well as the date of

payment in respect of all the bills. The Log Books were also not

authenticated by S.I. daily as required in terms of office order dated

28.7.2009.

4. On several occasions during the period from 01.08.2009 to 31.03.2010, the

meter reading at the commencement of the trip and after the conclusion of

the trip was in consecutive order and did not show any gap of even a single

K.M. for many days. It shows that the vehicles did not leave the parking site

even for a single hour for many days for taking fuel/gas etc.

5. The reading of meter recorded in the Log Book in respect of vehicle No.

DL-1L-J-9890 at the commencement of work on 01.09.2009 at 7.00 A.M. was

2511 but after conclusion of trip on 01.09.2009 at 2.30 P.M., it was shown as

2251 instead of 2551. However, fake reading from 2251 to 2551 were again

shown in the Log Book for subsequent 7 more days resulting in bogus

payment for about 7 days amounting to ̀ 7,150.

6. Similarly, the reading of meter of the vehicle No. DL-1L-J-9890 after

conclusion of the work/trip on 17.09.2009 at 2.00 P.M. was 2806. But at the

commencement of the work/trip on next day i.e. 18.9.2009 at 6.30 A.M., it

was shown as 2608 instead of 2806 due to which fake reading was recorded

again for subsequent 5 days, resulting in bogus payment amounting to

` 5,500 for 5 more days.

7. The reading of meter of above vehicle at the commencement of trip/work on

25.03.2010 at 7.30 A.M. was 9087 and after the conclusion of trip at 3. P.M.

on the same day, it was recorded as 10,127 which shows a gap of 1040 kms.,

which is totally impracticable. However, this time this mistake was not

rectified on subsequent dates which shows fake maintenance of Log Book of

the vehicle.

63

The above deficiencies put question mark on the veracity of actual

engagement/hiring of vehicles with engagement of two beldars/safai Karamcharies

for removal of garbage and malba in Ward No. 148 during the period from 1.8.2009

to 31.3.2010. Thus, this has resulted in irregular payment amounting to ` 3,40,611

to the Contractor as detailed below:-

S.N Ward No.

Name of Contractor

Period Regn. No. of Vehicle shown engaged/hired

Rate of tractor trolley

per day (`)

Payment made (`)

1 148 Sh. Virender Kashyap

1.8.2009 to 31.8.2009 DL-1L-L-4800 1,100 27,628


1.9.2009 to 30.9.2009 DL-1L-L-4800 1,100 27,279


1.10.2009 to 31.10.2009 DL-1L-L-4800 1,100 29,736


1.11.2009 to 30.11.2009 DL-1L-L-4800 1,100 27,540


1.12.2009 to 31.12.2009 DL-1L-L-4800 1,100 28,600


1.1.2010 to 31.1.2010 DL-1L-L-4800 1,100 29,716


1.2.2010 to 27.2.2010 DL-1L-L-4800 1,100 No bill submitted by the Contractor for payment


1.3.2010 to 31.3.2010 DL-1L-L-4800 1,100 No bill submitted by the Contractor for payment


1.8.2009 to 31.8.2009 DL-1L-J-9890 1,100 27,388


1.9.2009 to 30.9.2009 DL-1L-J-9890 1,100 27,284


1.10.2009 to 31.10.2009 DL-1L-J-9890 1,100 29,784


1.11.2009 to 30.11.2009 DL-1L-J-9890 1,100 27,600


1.12.2009 to 31.12.2009 DL-1L-J-9890 1,100 29,456


1.1.2010 to 30.1.2010 DL-1L-J-9890 1,100 28,600


1.2.2010 to 27.2.2010 DL-1L-J-9890 1,100 No bill submitted by the Contractor for payment


1.3.2010 to 31.3.2010 DL-1L-J-9890 1,100 No bill submitted by the Contractor for payment

Total 3,40,611


2012. The department furnished the reply (28.3.2012) which was duly considered

and further audit observations made thereon were issued in April, 2012, but no final

reply has been received so far.

(MCA/RS/DP-15(S)/2011-12)

64

27. Review of Ayurvedic Panchkarma Hospital, Kalu Sarai, S.D.M.C.

Ayurvedic Panchkarma Hospital, Kalu Sarai though evoked good response during 2008-09 but thereafter because practically dormant in giving panchkarma treatment/therapy to the patients/people residing in its catchment area. The hospital has also been losing its appeal for general ayurvedic treatment. There is a need to take a serious call on improving the utilization of doctors/staff of this hospital.

Introduction

Panchkarma is one of the theraputic procedures in Ayurveda. It is aimed at

radical elimination of disease causing factors and maintains the equilibrium of body

tissues (dhatus) and humours (doshas) data. The five fold measures adopted for this

therapy for internal purification of body system are Vaman, Virechan, Anuvasana,

Asthapana & Nasya. Panchkarma therapy is believed to be very effective in the

management of autoimmune disorders, rheumatic arthritis, bronchial asthma, GIT

disorders & mental diseases.

Health department of MCD has been providing preventive, curative &

promotive health services to a large section of population in Delhi. The available

infrastructure is also being used for promoting the management of Panchkarma.

Before initiating proposal for opening of first Panchkarma Hospital in Prashant Vihar,

a team of 9 members went to make a physical study of Panchkarma Unit

functioning in Trivandrum, Kerala on 22.6.2001. The study report was not produced

to Audit.

MCD started with establishing a Panchkarma Hospital at Prashant Vihar,

Rohini under the name “Shri Madhav Rao Sadashiv Rao Golvalkar (Guruji) MCD

Panchkarma Therapy Hospital” during 2001-02 for which the Standing Committee/

Corporation vide Resolution No.260 dated: 27.8.2001 & 418 dated: 17.7.2002

approved the creation of posts in different categories like R.M.S./Officer Incharge,

Medical Officer, Staff Nurse, Compounder, Ward Boy, UDC, LDC etc. Thereafter, 6

more Ayurvedic Panchkarma Hospitals were also established one each in K.B.Zone,

South Zone, S.P.Zone & Shahdara(North) Zone and two in West Zone during

2005-06 to 2007-08.

65

The Standing Committee vide Resolution No. 338 dated 8.11.2006 and the

Corporation vide its Resolution No. 558 dated 11.12.2006 approved the proposal for

opening of an Ayurvedic Panchkarma Hospital, Kalu Sarai and creation of category

‘A’ & ‘C’ posts. A budget provision of ` 140 lakh was made under Plan Head of

Account for the expenditure on establishment, medicines, equipment, furniture,

instruments, equipment and miscellaneous items. This hospital was however

opened on 19.1.2008.

Scope of Audit

The main object of Audit is to review/analyse the performance of the hospital

with regard to effectiveness/utilization of doctors alongwith para-medical staff

posted in the hospital and equipments & other assets purchased/installed with

respect to number of patients treated/cured.

Audit Comments 1. Poor performance of the hospital with respect to strength of Doctors/ para-

medical staff and the patients treated /cured.

The Standing Committee vide Resolution No. 338 dated 8.11.2006 and

Corporation vide Resolution No. 558 dated 11.12.2006 approved the creation of

following posts for this hospital.

1. R.M.S Incharge One

2. Medical Officer (Ay.) Three

3. Compounder (Ay.) One

4. Masseurs Four (Panchkarma Tech.) 5. Staff Nurse Four

6. Ward Boy Four

7. Sweeper Three

The hospital started functioning on 19.1.2008 with the following staff:-

1. R.M.S One

2. M.O. Four

66

3. Compounder (Ay.) One

4. Staff Nurse Three

5. Ward (Aya) Two

6. Sweeper Two

7. Chowkidar One

Year-wise number of patients treated/ cured with respect to the strength of

doctors / para-medical staff is as under:-

Patients treated with Panchkarma Therapy

Year Doctors and Para-medical

Staff

Number of patients treated with Panchkarma

Therapy

Average of patients treated by one doctor

with Panchkarma Therapy per month

19.1.2008 to 31.3.2008 4/6 31 3 2008-09 4/6 156 3 2009-10 4/4 18 Less than one 2010-11 5/4 51 2 2011-12 5/4 29 1 2012-13 4/4 42 2

327

Patients treated with General Ayurvedic treatment

Year Doctors and Para-medical

Staff

Number of patients treated General

Ayurvedic treatment in one year

Average of No. of patients treated by one doctor with General Ayurvedic

treatment

Per month Per day 19.1.2008 to 31.3.2008

4/6 1007 104 4

2008-09 4/6 4096 85 3 2009-10 4/4 1515 32 1 2010-11 5/4 5855 98 4 2011-12 5/4 5958 99 4 2012-13 4/4 6222 130 5

24,653

From the position given in the table, it may be observed that

è Since the opening of the hospital on 19.1.2008 only 327 patients were

treated with Panchkarma therapy, while 24,653 patients were treated with

general Ayurvedic treatment, upto March, 2013.

67

This indicated that the Panchkarma Therapy at this hospital failed to appeal

to patients residing in its catchment area. Even in regard to general Ayurvedic

treatment there is question mark on the quality of service rendered by hospital

doctor/staff as even in 2012-13 average number of patients attended to each by

doctor per day remained were ‘5’.

2. Under utilization of services of Doctors

Thus, though the hospital was opened for giving Panchkarma Therapy to the

patients, but it gave therapy to only 327 patients during Jan, 2008 to 31.3.2013

through 4/5 Medical Officers and 4-6 para-medical staff without Masseurs.

However, the hospital treated 24,653 patients with general Ayurvedic treatment

during the period from 19.1.2008 to 31.3.2013. This indicates that the services of

medical and para-medical staff were only not being properly utilized for the purpose

of providing Panchkarma Therapy and general ayurvedic treatment. Some of the

probable reasons for poor appeal of this hospital to any patient for Panchkarma

Therapy could be as follows:

1. Masseurs, Staff Nurse, Ward Boy/Aya were not appointed/posted in the

hospital.

2. The health department failed to provide medicines and Panchkarma

technicians to this hospital and hospital failed to provide credible services

to the patients.

3. Underutilization of Instruments/Apparatus/Furniture - ` 12.45 lakh.

Instruments / Apparatus/ Furniture costing to ` 12,44,927 were purchased

during the years 2007-08 to 2009-10. The hospital stated that no Instruments/

Apparatus were lying unused in the hospital. However, since a very few patients

were given Panchkarma therapy, the equipment/apparatus meant for Panchkarma

therapy remained grossly under utilized.

4. Non production of records.

Following records/ information were not produced to Audit.

1. Purchase files of instruments, equipments, furniture and medicines.

68

2. Information regarding expenditure incurred on the construction/ renovation of building.

Audit Suggestion:-

Ayurvedic Panchkarma hospital has been loosing its appeal for both

Panchkarma Therapy and general ayurvedic treatment. There is need to take a

serious call on improving the utilization of services of doctors, and infrastructure.

Since the opening of the hospital on 19.1.2008 to 31.3.2013 a negligible number of

patients (327) were treated with Panchkarma therapeutic system. There is hardly

any point in letting the Panchkarma therapy related infrastructure/staff to remain

unused in the hospital. It is, therefore, recommended that the hospital be run as

fullfledged Ayurvedic hospital without the pretence of its being Panchkarma hospital

and may be strengthened accordingly.

(MCA/RS/DP-30(S)/2011-12)

69

28. Wasteful expenditure due to non planting the plants - `. 3.79 lakh.

The entire expenditure of ` 3,79,092 incurred by the department for complete plantations at internal roads through contractor without getting the plants planted in the holes dug for planting proved wasteful.

The Horticulture department, Najafgarh Zone prepared two estimates each of

` 1,89,546 for complete plantation work at internal roads in Madhu Vihar &

Sadh Nagar, Najafgarh Zone in September, 2011 which included following items of

work.

The quantity in respect of each item of work mentioned at S. N. 1 to 5 above

was worked out based on projected requirement of 130 numbers of plants to be

planted. The plants were to be provided by the department.

Two works were awarded vide work order Nos.DDH/NGZ/2011-12/139 dated

19.10.2011 and DDH/NGZ/2011-12/141 dated 19.10.2011 to M/s Archana

Enterprises at a contractual amount of ` 1,89,546 each. The Contractor started the

works on 24.10.2011 and completed them on 1.11.2011 at a total cost of ` 3,79,092

(` 1,89,546 x 2).

A scrutiny of Measurement books No. 11001 and 11003 disclosed that the

Contractor executed all the 5 items mentioned above, but item No. 6 – relating to

Providing/Planting the plants was not executed as the plants were neither issued by

the department to the Contractor for planting nor the department got planted the

plants in the holes dug for planting through departmental labour.

S. N. Description of work Quantity

1. Digging holes in ordinary soil…………. 130 Nos.

2. S/S of good earth …………….. 117 m3

3. S/S of dung manure …………. 58.5 m3

4. P/F of M S Circular type tree guards 130 Nos.

5. Mixing of good earth & manure 175.5 m3

6. Providing/Planting the plants (to be provided by the department)

130

70

Thus the entire expenditure of ` 3,79,092 incurred by the department for

executing the work (Item No. 1 to 5) through the Contractor without getting the

plants planted in the holes dug for planting proved wasteful and needs

investigation.

The irregularity was brought to the notice of the department in June, 2012,


(MCA/RS/DP-17(S)/2011-12)

71

29. Review of New Pension Scheme, South Delhi Municipal Corporation.

Non-remittance of NPS Contributions with the concerned Trustee Bank (Bank of India) and in the relevant accounts of Subscribers resulted into over burdening of Municipal exchequer on account of interest of ` 4,81,07,703 and Non-claming of Employer’s Contribution of New Pension Scheme amounting to ` 11,29,64,265 in respect of Employees/Teachers of Education department from Govt. of NCT, Delhi, while seeking reimbursement of 70% of expenditure incurred on Education under different schemes of Non-Plan (Education).

Introduction

The Government of India, Ministry of Finance, vide Notification No. 5/7/2003-

ECB & PR, dated 22.12.2003 published in the Gazette of India, Extraordinary, Part-1,

dated 22.12.2003, introduced a new restructured defined contribution pension

system for new entrants to Central Government Service. The salient features of this

New Pension Scheme are as under:-

1. New pension Scheme is mandatory for all Government servants joining

service on or after 1.1.2004.

2. Government servant has to make contribution @ 10% of his basic pay plus

DA, which shall be deducted from his salary bills every month by the PAO

concerned. The Government shall make an equal matching contribution.

3. In order to implement the scheme, there shall be a Central Record Keeping

Agency and several Pension Fund Managers. An independent Pension Fund

Regulatory and Development Authority (PFRDA) shall regulate and develop

the pension market.

4. Till the regular Central Record Keeping Agency and Pension Fund Managers

are appointed and the accumulated balances under each individual account

is transferred to them, it has been decided that such contributions shall be

kept in the Public Account of India. This will be purely a temporary

arrangement.

As per Ministry of Finance, Government of India, letter No. F. No.5 (31)/2005-

ECB & PR, dated 30.9.2005, accumulations at the credit of subscribers to the new

Pension Scheme shall carry interest @ 8% p.a. and calculation of interest on

72

subscriptions will be done on monthly basis as stipulated in GPF Rules. Ministry of

Finance, O.M. No. CGA, F. No.1 (7)/2003/TA/Part File/177, dated 23.6.2008 further

stated that consequent upon appointment of National Security Depository Limited

(NSDL) as the Central Record Keeping Agency and Pension Fund Managers, the

contributions will be passed on to the Trustee Bank for investment. CDDOs will be

responsible for registering themselves and their NCDDOs on new Pension Scheme

Contribution Accounting Network (NPSCAN) of NSDL and for the following functions:-

(i) Registration of new employees with NSDL as well as notifying NSDL about

changes.

(ii) Preparation and passing of monthly salary bills and bills for the Government

contributions in respect of the Government servant covered under the NPS.

(iii) Remittance of employees and Government contribution to the Trustee bank

preferably by RTGS/NEFT.

(iv) Intimation/uploading of subscriber-wise remittance details to NSDL online and

(v) Maintenance of detailed ledger account

As per Circular No.AO/P/2008-09/D/17,dated 27-08-2008 issued by the Chief

Accountant–cum-Financial Advisor of erstwhile MCD, the deductions of employees

contributions were to be started from the salary for the month of August paid in

September, 2008. The Zonal DCAs were directed to send the amount of deductions

of employees contributions of NPS and matching employer’s contribution of the

same month itself to the HQ by way of ECS in favour of “Commissioner, MCD, A/c-

New Contributory Pension Scheme,2004(1)”, Bank Account No.30385204809, State

Bank of India, Chandni Chowk, Delhi. Further as per Circular No.

DCA/FP/2010/D/103, dated Nil, issued by the Chief Accountant–cum-Financial

Advisor of erstwhile MCD, the deductions of employees will be done through PRAN

(issued by NSDL) and no deductions will be made through PPAN from the month of

November, 2010 onwards.

73

Audit reviewed the system of New Pension Scheme introduced in Accounts

departments of three Zones (viz. West Zone, Central Zone & Najafgarh Zone) of

South Delhi Municipal Corporation for the year 2008-09 to 2011-12 and noticed as

follows.

Para 1 Accumulation of interest due to non- remittance of contributions of New Pension Scheme into Trustee Bank thereby over burdening of Municipal Exchequer- ` 481.08 lakh.

In terms of Chief Accountant-cum-Financial Advisor’s Circular No.

F/DCA/FP/2010/D/103 dated nil following officers were required to be registered with

National Securities Depository Limited, being the Central Record Keeping Agency

under the New Contributory Pension Scheme.

• Principal Accounts Office (Pr. AO)- DCA/Final Payment

• Pay and Accounts Office (PAO)- ACAs of Zones & Hospitals

• Drawing and Disbursing Offices (DDO)- All DDOs

All the employees covered under NPS have to obtain PRAN from NSDL for

implementation of the scheme irrespective of whether they have obtained PPAN or

not. PRAN can be obtained by the DDO/PAO from the facilitation centers of NSDL in

Delhi by submitting duly filled in form ST of the subscribers.

As per the Guidelines laid down for PAOs, the following records are required

to be maintained by them in their offices:-

1. Index Register- for allotment of 16 digit unique code, i.e. PPAN.

2. Ledger Folio- for posting the credits of contributions in the Detailed Ledger

Account of the individual.

3. Broadsheet- for posting of contributions done in ledger shall also be done in

Broadsheet and tallied with accounts figures as being done in the case of GPF

for pre 1.1.2004.

4. Consolidated Information in Floppy- for forwarding the information received

from DDOs in Annexure-III and IV to Principal Accounts Office by PAO.

5. Transfer Cases- The PAO will not transfer any balance to any other PAO.

74

6. Reconciliation after close of each Financial Year- After close of each financial

year, CPAO shall have to report the details of balance PAO wise to each Pr.

AO, who shall forward the information to each PAO for the purpose of

reconciliation. The PAO will reconcile the figure of contributions posted in the

ledger account of the individuals as per their ledger with figures as per the

books of CPAO.

7. Accounting Heads in the books of PAO- For classification of recoveries from

the individual and the Govt. matching contributions as credits.

A review of records i.e. Cash Books, Vouchers and Expenditure Control

Register (ECR) in respect of New Pension Scheme (NPS), maintained in Accounts

Department of three Zones (viz. West Zone, Central Zone & Najafgarh Zone) for the

years 2008-09 to 2011-12 revealed that the Assistant Chief Accountants (PAO) of

the Zones did not remit the NPS contributions amounting to ` 30,27,94,284 to the

Trustee Bank(Bank of India). As per the entries in the Expenditure Control Register

(ECR), the said amount had been deposited in Current Account. The Accounts

Officer (NPS) of erstwhile MCD, requested Asstt. Chief Accountants to upload the

relevant information on CRA System immediately and remit this amount to the

Trustee Bank. i.e. Bank of India. There was nothing on record to show if the

aforesaid amount of subscribers contribution alongwith employer’s contribution of

NPS had been deposited in the concerned Trustee Bank after uploading the relevant

subscriber’s information on Central Record Keeping Agency (CRA) System as

requested by AO/NPS.

Non-remittance of NPS Contributions with the concerned Trustee Bank (Bank

of India) and in the relevant accounts of subscribers resulted into over burdening of

Municipal exchequer on account of interest of ` 4,81,07,703 as detailed below.

S. No.

Name of the Zone

NPS Contribution / not remitted

to Trustee Bank (`)

Interest

(`)

1. West Zone 12,26,91,730 2,50,11,150 2. Central Zone 2,97,29,726 52,97,738 3. Najafgarh Zone 15,03,72,828 1,77,98,815 Total 30,27,94,284 4,81,07,703

75

The P.A.Os of the departments also did not maintain above mentioned

records viz Index Register, Ledger Folio, Broadsheet, etc. and had not done any

reconciliation after the close of each financial year as required in terms of

Guidelines of the scheme. In the absence of which the exact position of

employees/employer’s contribution in respect of individual employee w.e.f.

1-1-2004 to 31-03-2012 and actual number of employees covered under NPS as on

31-3-2012 could not be checked in Audit.

Para 2 Non- claming of Employer’s Contribution of New Pension Scheme in respect of Employees/Teachers of Education Department from Govt. of NCT, Delhi, under Non-Plan (Education) Grant ` 1129.64 lakh.

The Expenditure incurred on Education is met out of Non-Plan Funds of the

erstwhile MCD. Thereafter 70% thereof is reimbursed by Govt. of NCT, Delhi.

It was noticed from the records maintained by Accounts department of West

Zone that during the years 2008-09 to 2011-12 different departments of the zone

had contributed an amount of ` 18,99,18,496 towards employer’s contribution

equivalent to 10% of pay of the employees/ subscribers covered under New Pension

Scheme (N.P.S). This amount of contribution was for the years 2008-09 to 2011-12.

The Accounts department of the zone had not bifurcated this amount between

Education department and other departments in its books of accounts i.e. Cash

Books, Monthly Accounts etc. As a result it could not prefer claim of the amount of

employer’s contributions in respect of the employees working in Education

department from Govt. of NCT, Delhi, while seeking reimbursement of 70%

expenditure incurred on education under different Schemes of Non-Plan

(Education). The expenditure incurred on account of employer’s contribution in

respect of the Education department as worked out in Audit amounts to

` 16,13,77,522.

Apart from this, while seeking re-imbursement of 70% of expenditure

incurred on Education under different schemes of Non-Plan (Education), the

department did not prefer claim of 70% of expenditure amounting to ` 11,29,64,265

towards employer’s contribution. Also no record relating to deduction of

76

contribution towards NPS has been maintained in Accounts departments. Thus this

had over burdened the Municipal exchequer by ` 11,29,64,265.

The matter was brought to the notice of the departments during July, 2013 to

Sept, 2013, but no reply has been received from the department so far.

(MCA/RS/DP-31(S)/2011-12)

77

30. Outstanding temporary advances - ` 2262.48 lakh.

Temporary advances amounting to ` 2262.48 lakh drawn by the drawing & disbursing officers of different departments of the zones during the years 1998-99 to 2011-12 have not been adjusted so far.

Rule 75 of General Financial Rules, 2005 provides that advances to

Government servants and others for special departmental purposes shall be

regulated by special orders issued by Government or an Administrator, as the case

may be. A Government servant who is granted advances from public funds shall be

responsible for its adjustment and/or repayment.

Further, in terms of Commissioner’s Circular No.CA/Adv./43/40/834 dated

16.8.1988, a temporary advance is required to be adjusted immediately after the

transaction for which it was given is over and in no case not later than one month

from the date of drawal of the advance. It will be the personal responsibility of the

Drawing & Disbursing Officer to clear the advance within prescribed time. In case

the adjustment is delayed, the salary of the officer against whom the advance is

outstanding will have to be withheld till proper accounts are rendered.

It was noticed from the Temporary Advance registers maintained in the

Accounts Offices of four Zones and Executive Engineer (E&M)-I that temporary

advances amounting to ` 22,62,48,156 drawn by the Drawing & Disbursing Officers

of different departments of the Zones, during the years 1998-99 to 2011-12 have

not been adjusted so far. The year wise breakup of these advances in respect of

four Zones and Executive Engineer (E&M)-I is as under:-

S.N. Name of Zone / Years Amount (`) 1. Central Zone 2003-04 to 2006-07 53,17,657 2007-08 1,50,64,255 2008-09 2,87,93,760 2009-10 3,05,56,955 2010-11 81,27,811 2011-12 64,58,861 9,43,19,299

2. South Zone 1998-99 53,803 1999-2000 6,12,736 2000-01 21,66,472

78

2001-02 9,28,852 2002-03 5,76,909 2003-04 47,76,437 2004-05 25,49,329 2006-07 3,78,027 2008-09 11,54,745 2009-10 1,33,41,022 2010-11 1,45,65,050 2011-12 5,37,08,298 9,48,11,680

3. Najafgarh Zone 2011-12 1,01,65,984

4. West Zone 2011-12 83,87,214

5. Ex. Engg.(E&M)I 2000-01 37,70,590 2001-02 5,13,447 2005-06 3,26,985 2006-07 57,305 2007-08 39,00,000 2008-09 92,592 2009-10 99,03,060 1,85,63,979 Grand Total 22,62,48,156

The department wise position of these advances in respect of four Zones and

Executive Engineer (E&M)-I is as under:-

S.N. Name of Zone / Name of Drawing & Disbursement Officer

Amount (̀ )

1. Central Zone Dy. Health Officer 29,893 Sanitation Superintendent 6,80,682 Asstt. Commissioner 25,000 Dy. Director (Horticulture) 2,27,256 Dy. Director (Education) 9,31,38,911 A.O. (I.T.) 2,17,557 Total 9,43,19,299

2. South Zone Dy. Health Officer & CAMO 93,896 Sanitation Superintendent 8,82,425 Asstt. Commissioner 80.000 Dy. Director (Horticulture) 5,09,300 Dy. Director (Education) 760,42,792 A.A. & C. 1,14,782 Executive Engineer, Division-I 1,64,19,230 Kasturba Hospital 3,34,255 Executive Engineer, Building-I 3,35,000 Total 9,48,11,680

79

3. Najafgarh Zone Sanitation Superintendent 35,984 Dy. Director (Horticulture) 4,92,600 Dy. Director (Education) 96,37,400 Total 1,01,65,984

4. West Zone Sanitation Superintendent 1,85,756 Dy. Director (Horticulture) 1,21,500 Dy. Director (Education) 80,79,958 Total 83,87,214

5. Ex. Engg. (E&M)-I 1,85,63,979 Grand Total 22,62,48,156

During the course of audit of different offices of the zone it was noticed that

most of the Drawing & Disbursement Officers had not maintained Temporary

Advance registers. As such they were requested to furnish the following

information.

1. Voucher No., date and amount of advance.

2. Head of account and Name of Scheme/Project Under/for which advance drawn.

3. Name of Agency/body for which drawn.

4. Expected date of completion of Project/Scheme/Purpose.

5. Actual date of Completion of Project/Scheme.

6. Whether the department pursued for adjustment of advances after

completion of Project/Scheme, if so, letter No. & date vide which pursed.

7. Whether the department reflects the above vital information in the register of

advances.

Above information were not furnished by the department. In the absence of

such register, the mechanism through which the department kept control over the

drawal as well as adjustments of these advances could not be ascertained.

The matter was brought to notice of the department in July, 2012, but no

reply has been received from the department so far.

(MCA/RS/DP-32(S)/2011-12)

80

31. Outstanding Audit Reports, Inspection Reports and Audit Objections.

The Para indicates the position of outstanding paras of Annual Audit Reports upto the year 2010-11 presented to the Standing Committee as well as the position of Inspection Reports/Audit Notes and objections included therein issued upto 31.3.2013. These Audit Objections and Audit Paras have not been settled in the absence of replies from various departments despite directions of the Corporation for furnishing replies in a fixed time schedule.

(a) Outstanding paras of Audit Reports.

There were 446 Audit Paras relating to financial irregularities commented

upon in the Audit Reports upto the year 2010-11 lying outstanding as on 31.8.2013.

Year-wise number of outstanding paras for the period 1963-64 to 2010-11 in

respect of South Delhi Municipal Corporation is as under:-

Year No. of outstanding paras Details of paras 1963-64 1 14(P) 1964-65 - - 1965-66 - - 1966-67 - - 1967-68 1 45 1968-69 - -

1969-70 1 58(P) 1970-71 - - 1971-72 3 14(P),15(P),16(P) 1972-73 2 9,39 1973-74 1 9(P) 1974-75 4 3(P),4(P),8(P),32 1975-76 8 3(P),4(P),7(P),20(P),

34,52,57,73 1976-77 12 1,2(P),4,5,6,10,18(P),

33(P),35,47, 64,101(P) 1977-78 9 4(P),5(P),9,10,

13,14,18,19,71 1978-79 6 1,3,5,13(P),36,37 1979-80 3 2(P),12(P),36 1980-81 4 16(P),18(P),19(P),20(P) 1981-82 1 2(P) 1982-85 - - 1985-86 2 3,12(P) 1986-87 8 2(P),3(P),5,6(P),

11(P),22,24,25 1987-88 5 3,11(P),22(P), 31(P),32(P)

81

1988-89 1 16(P) 1989-90 3 1(P),2(P),11 1990-91 6 2,4,5,6,8,13 1991-92 4 1(P),5,10,20(P) 1992-93 4 1(P),3(P),14(P),16 1993-94 6 2,4(P),9,10, 30(P),31(P) 1994-95 8 5,8,9,13,15(P), 20(P),22,23 1995-96 17 1(P),2,4,5,8,10,13,

14,15,16,21,23,24, 28(P),29(P),32(P),33(P)

1996-97 21 3,4,6,7,8,9,10,12, 13,14,16,19,22,23, 28,29,32(P),33(P), 37(P),46,55

1997-98 24 5(P),7,8,9,10,11, 12,14,15,16,17,19, 20,21,22,25,26,27, 29,30,32,35(P),47,62

1998-99 21 2(P),3,4,6,7,9,14,15,17, 18,19,25,26,27, 29, 30(P),32,36,38, 49,50(P)

1999-00 22 1(P),2(P),10,15,16,17,18,20,22,25,27,29,32,34,41,43,46,47(P),49(P), 50(P), 51,56

2000-01 28 3(P),4(P),5(P),9,14, 15,16, 17,18,19,20, 21, 23,24, 27,28,29, 32,34,35,36,37, 39, 40,41,43, 48,57(P)

2001-02 32 4,5,7(P),9(P),10(P),11,12(P),13,15,16,17,18,19,21,22,23,27, 28,29,30,31,32,33,37, 41(P),45,48,49,51,60,61,62

2002-03 25 1(P),2(P),3(P),4,6,9(P),14(P),15,19,20,22,23,26,28,29,30, 32,33,38,40,41,49(P)52, 54,56

2003-04 21 1(P),2(P),4(P),5,6,12, 13,15,16,17, 18,19, 24,25,30,38(P),39, 47(P),49,51,53(P)

2004-05 12 3,4,8,9,10,13, 19,29, 30,36, 42,48(P)

2005-06 18 4,8,9,10,11,12,13,14, 18,23(P),27(P),28,29, 30,31(P),33,34(P),39

2006-07 16 1(P),3,5(P),8(P),10,14(P), 15,16(P),21(P),22,23,24(P), 26,30, 31(P),33(P)

2007-08 18 2(P),4,6,11(P),14(P),15(P), 16,19,20,21,23(P),26,27, 29(P),33, 35(P),36(P),39

82

2008-09 24 5,7,9(P),12,14(P),15(P),17, 18(P),19(P),20(P),22(P), 23(P), 26,27(P),28,31,32, 33, 35(P),36(P),39,41, 42(P),43

2009-10 23 3,5(P),7,10,11,13(P),15(P), 17,21,23(P),24(P),25(P),26, 29, 30,31,32,33,37(P), 40,46(P),47(P),48

2010-11 21 1 to 21 Total 446

* P indicates that paragraph contains part observation relating to the SDMC

In addition to above 446 paragraphs there were 47 audit paras of different

Audit Reports which being related to Outstanding Audit Reports, Inspection Reports

& Audit objections, Recoveries made at the instance of audit were more or less

informative in nature.

(b) Outstanding Inspection Reports/Audit Notes & Vouching Notes.

The Corporation vide resolution No.32 dated 3.9.1959 has prescribed a time

limit of one week for disposal of Audit Objections by the departmental officers and

10 days in the case of disposal by the Commissioner.

There were 22,942 Audit Objections/Items, which could not be settled in the

absence of replies. Year-wise number of outstanding Reports and also department

wise outstanding Reports and objections for the period 1964-65 to 2011-12 as on

31.3.2013, is as under: -

Year to which Inspection Reports/ Audit Notes

relate

No. of outstanding Inspection Reports/Audit

Notes

No. of outstanding Items.

1964-65 1 5

1965-66 1 1

1966-67 1 5

1967-68 2 10

1968-69 2 10

1969-70 0 0

83

1970-71 4 23

1971-72 10 45

1972-73 12 72

1973-74 14 84

1974-75 18 119

1975-76 16 113

1976-77 19 160

1977-78 26 193

1978-79 93 549

1979-80 54 318

1980-81 56 321

1981-82 54 332

1982-83 66 407

1983-84 66 397

1984-85 65 444

1985-86 75 544

1986-87 75 570

1987-88 64 481

1988-89 61 557

1989-90 67 607

1990-91 68 651

1991-92 48 518

1992-93 42 478

1993-94 60 770

1994-95 64 755

1995-96 61 780

1996-97 60 775

1997-98 68 829

1998-99 70 966

1999-00 77 971

2000-01 63 855

2001-02 69 896

84

2002-03 76 947

2003-04 69 878

2004-05 63 626

2005-06 74 730

2006-07 91 838

2007-08 80 774

2008-09 71 643

2009-10 66 630

2010-11 81 714

2011-12 56 551

Total 2399 22942

The department wise break up is as under:-

Department No. of outstanding Inspection Reports/Audit Notes.

No. of Items

Engineering 688 8371

Health 583 4010

Accounts 200 1177

Asstt. Commissioner/ Addl. Dy. Commissioner

154 1505

Education 172 1764

Horticulture 147 1529

D.E.M.S. 217 1974

Assessment & Collection 169 2156

Miscellaneous 69 456

Total 2,399 22,942

The accumulation of Inspection Reports/Audit Notes and Audit Observations

to a good number of 2,399 and 22,942 respectively indicates that the departments

concerned have not been following the instructions regarding prompt and proper

disposal of audit objections and queries. They are required to furnish the necessary

explanation, information, documents, records and other particulars, as the case

may be within a week of the receipt of communication from Audit but Audit

Inspection Reports are being treated in a very casual manner by the Municipal

85

Officers who neither reply promptly to the Audit Objections nor discuss the

circumstances in which the irregularities etc. have been allowed to continue. The

primary responsibility for taking appropriate action and clearance of Audit

Objections is of the department concerned and it is obvious that casual treatment

of audit observations weakens the accountability-mechanism. Therefore it is

strongly recommended that the departments should put in place an effective

mechanism to monitor the compliance to audit observations and their settlement.

(MCA/RS/DP-29(S)/2011-12)

86

ANNEXURE – A [Referred to in Para 11]

S.N. Ref. No. of Demolition Charges Register

Property No. Amount

1. 1180 1418/13, Govind puri 5,875/-

2. 1181 T-11, Chruch Road, Jungpura 15,750/-

3. 1183 RZ-2062-63/27, Tuglakabad Extn. 4,700/-

4. 1184 B-68, OIA – Ist 7,050/-

5. 1185 RZ-2514/c/127, Tuglakabad Extn. 5,875/- 4,700/-

6. 1186 RZ-1/4, Gali No. 4, Tuglakabad Extn. 2,350/-

7. 1187 S-357, G.K. Ist 21,000/-

8. 1189 1418/13, Govind puri 5,875/-

9. 1191 1318/8, Govind puri 10,500/-

10. 1193 1049 E/10, Govind puri 2,350/-

11. 1194 779, Sunlight Colony 3,525/-

12. 1195 S-290, G.K.-Ist 26,250/-

13. 1196 185 B, Jeevan Nagar 2,350/-

14. 1198 B-63, Lpn-Ist 34,125/-

15. 1199 B-272, GK-Ist 21,000/-

16. 1200 C-235, Sarita Vihar 7,050/-

17. 1201 E-287, Sarita Vihar 3,525/-

18. 1202 165-B, Jeevan Nagar 7,050/-

19. 1203 601, Sunlight Colony-I 8,225/-

20. 1204 7/7, 7/8, Nehru Nagar 5,825/-

21. 1205 7A, Church Road, Bhogal 8,225/-

22. 1206 B-126, Kalkaji 28,875/- 31,500/-

23. 1208 RZ-48/6, T.B. Extn. 4,700/-

24. 1210 RZ-9/12, Gali No. 11, T.B. Extn. 3,525/-

25. 1212 RZ-4/11, T.B. Extn. 4,700/-

87

26. 1213 RZ-9/16, Gali No. 11, T.B. Extn. 3,525/-

27. 1214 B-126, Kalkaji 1,78,500/-

28. 1215 C-471, Johrikunj Gali K.M. Pur 15,750/-

29. 1217 6/7, 6/8, Nehru Nagar 5,875/-

30. 1222 291/4, Gali No. 4, Govind Puri N. Delhi 11,750/-

31. 1223 C-8, Sanwal Nagar 63,000/-

32. 1224 D-52, O.D.S Lajpat Nagar-IV 21,000/-

33. 1226 349/, Slum Tenants DDA flat Kalkaji 25,100/-

34. 1227 N-192/B, Janta Flats, Sarita Vihar 4,700/-

35. 1228 E-8, Kailash Colony N.D. 33,300/-

36. 1229 1415, Gali No. 13 Govind Puri N. Delhi 5,250/-

37. 1230 1421, Gali No. 13, Govind Puri N. Delhi 7,875/-

38. 1232 1412, Gali No. 3, Govind Puri 15,750/-

39. 1235 RZ-2692/29, TKD Ext. 10,500/-

40. 1236 A-231, OIA Ph-I 5,875/-

41. 1237 95, Sarai Jullena, N.D. 10,500/-

42. 1238 D-1112, New Friends Colony, N.D. 5,250/-

43. 1240 53, Bharat Nagar NFC, N.D. 15,750/-

44. 1241 RZ-535/21, TKD Ext. 7,875/-

45. 1242 RZ-2677/28, TKD Ext. 13,125/-

46. 1243 RZ-2688/29, TKD Ext. 7,875/-

47. 1244 O-12, Sri Niwash Puri 10,500/-

48. 1245 136318, Govind puri 3,525/-

49. 1246 B-85/B (p.no. 126), Kalkaji 1,22,900/-

50. 1247 26, Masihgarh vill. 34,125/-

51. 1248 1359-C, Gali No. 8, Govind Puri 7,050/-

52. 1250 51, Kailash Kunj 18,070/-

53. 1251 New K.G. Khusla Malu Band main 25 feet Road, N.D. 11,750/-

54. 1252 198/32, Ramesh Market Garhi 11,750/-

55. 1253 TA-102 & 103, TKD. Ext. 21,000/-

88

56. 1255 6/5, Nehru Nagar 10,500/-

57. 1256 C-471, Johrikunj 26,250/-

58. 1261 C-118, DDA Flats, Kalkaji 4,200/-

59. 1262 K-1/102, CR Park, ND 21,000/-

60. 1264 B-24, GK-I 4,700/-

61. 1265 50, 11,750/-

62. 1266 Bhogal 136, Hari Nagar Ashram 7,050/-

63. 1268 RZ-176 A/15, TKD. Ext. 2,350/-

64. 1269 RZ-457, Gali No. 14 TKD. Ext. 8,225/-

65. 1270 F-14/10, Joga Bai Ext. 23,625/-

66. 1271 198/32, Ramesh Mkt. Garhi 4,700/-

67. 1272 2/6 Jungpura 10,500/-

68. 1273 P.N. 49 (New N.) 38 (old) church Road Bhogal 4,700/-

69. 1274 Plot No.1, Jungpura Lane, Bhogal 5,875/-

70. 1275 1/21 Double story Jungpura Ext. 23,625/-

71. 1276 Plot No. 1, Suman Bazar 7,850/-

72. 1277 P.N. 105 (num P.N. 107/1) Suman Bazar, Bhogal 7,875/-

73. 1278 C-53, Vishnu Kumar colony 26,500/-

74. 1279 H.N.-86, 8,250/-

75. 1280 23/34 Main Mkt. Badupr. 8,250/-

76. 1281 P.N. 6 Shop No. 2 Dhuruvihar mkt. Badupr. 15,750/-

77. 1282 A-222, Main Mkt. Badupr. 10,500/-

78. 1283 B-10, Main Road Tajpur Road Budpr. 4,125/-

79. 1284 P.N. 105, near P.n. (107/1) Suman Bazar Bhogal 7,875/-

80. 1285 J-64 private colony Sri Niwash puri 7,050/-

81. 1286 Plot No.1 Suman Bazar Bhogal 7,850/-

82. 1287 105, Suman Bazar Bhogal (near p.n. 107/1) 7,875/-

83. 1288 1018, Gali No. 2 Govind puri 7,050/-

Total 12,91,120/-

89

ANNEXURE – B 1 [Referred to in Para 15]

S. N.

W. O. No. & date Qty. of pdg. and laying RMC (M3)

Rate (`)

+ - % age

Amount (`)

E.E – (M-I) – Central Zone 1 364/02.03.2009 68.72 2364.15 (+) 39.86 % 2,27,223 2 362/02.03.2009 95.67 2364.15 (+) 53.88 % 3,48,043 3 137/29.10.2009 54.24 4471.25

-147.30 4323.95

(-) 3.40 % 2,26,557

4 363/02.03.2009 69.61 2364.15 (+) 42.98 % 2,35,300 Total 10,37,123 E.E – (M-II) – Central Zone 5 247/02.03.2009 118.95 2364.15 (+) 04.42 % 2,93,645

6 258/02.03.2009 118.62 2340 (+) 39.44 % 3,87,045 7 177/08.01.2010 75.89 4471.25

-147.30 4323.95

(+) 14.52 % 3,75,791

8 257/02.03.2009 71.64 2364.15 (+) 29.49 % 2,19,314 9 204/25.02.2009 111.60 2364.15 (+) 46.23 % 3,85,812 10 122/17.01.2008 50.60 3490.10 URM 1,76,599 11 205/25.02.2009 102.46 2364.15 (+) 46.00 % 3,53,657 12 24/26.05.2009 62.89 2364.15 (+) 49.00 % 2,21,535 13 48/02.06.2009 51.80 4471.25

-147.30 4323.95

(-) 08.61 % 2,04,696

14 246/02.03.2009 65.28 2364.15 (+) 26.89 % 1,95,832 15 63/16.06.2009 102.28 2364.15 (+) 45.90 % 3,52,794 16 210/25.02.2009 103.36 2364.15 (+) 45.95 % 3,56,641 17 14/21.05.2009 104.56 2364.15 (+) 45.53 % 3,59,744 18 203/25.02.2009 105.68 2364.15 (+) 46.52 % 3,66,071

90

19 200/25.02.2009 107.47 2364.15 (+) 48.52 % 3,77,352 20 218/25.02.2009 64.30 2364.15 (+) 57.02 % 2,38,694 21 216/26.02.2009 100.21 2364.15 (+) 46.52 % 3,47,123 22 208/25.02.2009 112.61 2364.15 (+) 46.23 % 3,89,304 23 43/28.05.2009 105.00 2364.15 (+) 45.00 % 3,59,942 24 207/25.02.2009 101.05 2364.15 (+) 45.90 % 3,48,551 25 79/27.07.2009 81.10 4471.25

-147.30 4323.95

(-) 17.41 % 2,89,620

26 20/26.05.2009 73.77 4471.25 -147.30 4323.95

(-) 17.36 % 2,63,603

27 206/25.02.2009 110 2364.15 (+) 46.02 % 3,79,735 Total 72,43,100 E.E – (M-III) – Central Zone 28 93/16.07.2010 52.77 4471.25

-147.30 4323.95

(-) 08.00 % 2,09,921

29 29/25.07.2009 71.96 4471.25 (+) 08.95 % 3,50,548 30 57/25.05.2011 69.45 4471.25

-147.30 4323.95

(+) 02.15 % 3,06,755

31 38/13.04.2010 26.94 4471.25 -147.30 4323.95

-------- 1,16,487

32 36/13.04.2010 26.59 4471.25 -147.30 4323.95

-------- 1,14,974

Total 10,98,685 Grand Total 93,78,908

91

ANNEXURE – B 2 [Referred to in Para 15]

S. N.

W. O. No. & date Qty. of pdg. and laying RMC (M3)

Rate (`)

+ - % age

Amount (`)

Remarks

E.E – (M-I) – Central Zone 1 140/29.10.2009 79.86 4471.25

-147.30 4323.95

(-) 3.62 % 3,32,810 No batch mix slip and address of RMC Plant .

2 277/15.01.2009 125.09 2364.15 (+) 67.00 % 4,93,872 No batch mix slip No form VAT 3D Haryana

3 240/17.12.2008 61.69 2364.15 (+) 45.05 % 2,11,547 No batch mix slip and address of RMC Plant .

4 224/22.12.2009 82.96 4323.95 (-) 3.265 % 3,47,003 No batch mix slip 5 328/25.02.2009 83.09 2364.15 (+) 51.45 % 2,97,504 No batch mix slip 6 233/22.12.2009 53.22 4323.95 (-) 3.92 % 2,21,100 No batch mix slip No form

VAT 3D Haryana 7 220/16.12.2008 96.29 2364.15 (+) 44.70 % 3,29,401 No batch mix slip No form

VAT 3D Haryana 8 290/29.01.2009 106.74 2364.15 (+) 63.09 % 4,11,557 No batch mix slip , TIN No and

25% fly ash, VAT 3D Haryana 9 219/16.12.2008 95.91 2364.15 (+) 47.00 % 3,33,316 -Do- 10 339/25.02.2009 44.49 2364.15 (+) 47.00 % 1,54,616 No batch mix slip 11 179/11.12.2008 88.55 2364.15 (+) 53.98 % 3,22,350 No batch mix slip 12 142/29.09.2008 70.10 2364.15 (+) 65.50 % 2,74,278 No batch mix slip

and address of RMC Plant . 13 68/26.04.2011 87.94 4544.01 URM 3,99,600 No batch mix slip 14 84/09.07.2009 71.79 2364.15 (+) 54.33 % 2,61,932 No batch mix slip, No form

VAT 3D Haryana 15 176/17.02.2011 106.56 4544.01 URM 4,84,210 No batch mix slip 16 312/03.02.2009 97.41 2364.15 (+) 39.00 % 3,20,106 No batch mix slip 17 181/11.11.2009 79.73 4323.95 (-) 5.76 % 3,24,891 No batch mix slip No form

VAT 3D Haryana and no TIN

92

18 350/26.02.2009 50.24 2364.15 (+) 53.66 % 1,82,510 No batch mix slip No form VAT 3D Haryana and no TIN

Total 57,02,603

E.E – (M-II) – Central Zone 19 173/21.11.2011 84.65 4680.10

136.09 4544.01

URM 3,84,650 No batch mix slip, No TIN and No form VAT 3D Haryana




23 17/05.05.2011 50.70 4471.25 -147.30 4323.95

(-) 6.90 % 2,04,098 No batch mix slip No form VAT 3D Haryana

24 35/19.05.2010 84.11 4471.25 -147.30 4323.95

(-) 05.08 % 3,45,212 No batch mix slip

25 23/26.05.2009 64.96 2364.15 (+) 49.00 % 2,28,827 No batch mix slip No form VAT 3D Haryana and no TIN


27 206/29.03.2011 84.46 4471.25 -147.30 4323.95

(-) 4.48 % 3,48,840 No batch mix slip No form VAT 3D Haryana and no TIN

28 184/23.02.2011 71.46 4471.25 -147.30 4323.95


29 110/02.09.2011 57.45 4680.10 136.09

4544.01

URM 2,61,053 No form VAT 3D Haryana No batch mix slip

93

30 147/01.10.2011 80.12 4680.10 136.09

4544.01

URM 3,64,066 No batch mix slip No form VAT 3D Haryana


Total 38,02,116 E.E – (M-III) – Central Zone 32 133/18.07.2011 70.23 4471.25 (+) 07.89 % 3,38,792 No batch mix slip No form

VAT 3D Haryana 33 132/18.07.2011 79.68 4471.25

-147.30 4323.95

(+) 03.06 % 3,55,075 No batch mix slip and no address of Plant

34 143/02.08.2011 29.00 4680.10 URM 1,35,723 No batch mix slip No form VAT 3D Haryana

35 165/28.09.2011 70.42 4680.10 URM 3,29,573 No batch mix slip 36 132/22.02.2011 62.58 4680.10

136.09 4544.01

URM 2,84,364 No batch mix slip and no address of RMC Plant .

37 104/30.06.2011 88.27 4471.25 -147.30 4323.95

(+) 03.23 % 3,94,003 No batch mix slip and no address of RMC Plant .

38 251/29.12.2011 39.48 4680.10 URM 1,84,770 No batch mix slip and no address of RMC Plant .

39 50/25.05.2011 81.69 4471.25 -147.30 4323.95


40 53/25.05.2011 83.83 4471.25 -147.30 4323.95


41 155/24.08.2011 73.27 4471.25 -147.30 4323.95

(+) 4.16 % 3,29,995 No batch mix slip No form VAT 3D Haryana and no TIN

42 154/24.08.2011 77.18 4471.25 -147.30

(+) 4.24 % 3,47,872 No batch mix slip No form VAT 3D Haryana and no TIN

94

4323.95 43 127/28.01.2011 71.53 4680.10

136.09 4544.01

URM 3,25,033 No batch mix slip

44 97/18.10.2010 107.32 3785.39 URM 4,06,248 No batch mix slip and address of Plant

45 91/18.10.2010 117.29 3785.39 URM 4,43,988 No batch mix slip and no address of Plant

46 95/18.10.2010 111.26 3785.39 URM 4,21,162 No batch mix slip No form VAT 3D Haryana

47 90/18.10.2010 112.66 3785.39 URM 4,26,462 No batch mix slip and no address of Plant

48 126/28.01.2011 68.76 4680.10 136.09

4544.01

URM 3,12,446 No batch mix slip and no address of Plant

49 49/16.04.2010 80.50 4471.25 -147.30 4323.95

(-) 05.60 % 3,28,586 No batch mix slip and no address of Plant

50 66/01.07.2010 29.65 4471.25 -147.30 4323.95

------- 1,28,205 No batch mix slip and no address of Plant

51 67/01.07.2010 29.82 4471.25 -147.30 4323.95

------- 1,28,940 No batch mix slip and no address of Plant

Total 63,27,061 Grand Total 1,58,31,780

95

ANNEXURE – C [Referred to in Para 23]

S.N. Work Order No. & Date

Qty of stone aggregate supplied & stacked

Qty of laying of W.B.M.

taken as paid

Qty of laying of W.B.M. should be taken i.e. 80% of coarse aggregate

supplied

Qty of WBM excess taken

(20%)

Rate / C.E. Amount

m3 m3 m3 m3 (`) / (%) (`) Ex. Engg. (Proj. I) South Zone

1 144/28.8.2008 1144.68 (63mm-45mm= 766.17)

(53mm-22.4mm= 378.51)

1135.11 915.74 228.94 122 +73.15%

48,362

2 30/21.4.2010 226.64 (53mm-22.4mm)

226.64 181.31 45.33 192.55 +10.64%

9,657

Total 58,019 Ex. Engg. (Proj. II) South Zone

3 69/28.2.2011 54.67 (53 mm-22.4 mm)

54.67 43.74 10.93 220.24 URM

2,407

4 8/16.5.2011 48.37 (53 mm-22.4 mm)

48.37 38.70 9.67 220.24 URM

2,130

5 64/10.2.2011 75.76 (53 mm-22.4 mm)

75.76 60.61 15.15 220.24 URM

3,337

6 20/2.11.2011 255.88 (53 mm-22.4 mm)

255.82 204.70 51.16 192.55 +7.91%

10,631

7 21/2.11.2011 267.94 (53 mm-22.4 mm)

267.94 214.35 53.59 192.55 +7.91%

11,135

Total 29,640 Ex. Engg. (Proj.) Najafgarh Zone

8 56/24.5.2010 113.76 (53mm-22.4mm)

113.76 91.00 22.76 192.55 +16.90%

5,123

9 52/24.5.2010 847.64 (53mm-22.4mm)

847.64 678.11 169.53 192.55 +39.99%

45,697

10 89/22.12.2009 1865.74 (53mm-22.4mm= 1133.87)

(63mm-45mm= 731.87)

1865.70 1492.59 373.15 192.55 - 1.50%

70,772

Total 1,21,592

96

Ex. Engg. (M-I) West Zone 11 211/11.5.2011 214.87

(53mm-22.4mm) 214.87 171.90 42.97 192.55

+ 20.79% 9,994

12 517/26.8.2011 1139.66 (53mm-22.4mm= 572.22) (63mm-45mm= 567.44)

1139.66 911.73 227.93 192.55 + 11.70 %

49,023

13 836/31.3.2010 314.10 (53mm-22.4mm= 152.12) (63mm-45mm= 161.98)

314.11 251.28 62.82 192.55 +17.89%

14,260

Total 73,277 Grand Total 2,82,528

97

ANNEXURE – D [Referred to in Para 24]

S. N. Work Order No. & Date

Qty. of P/L cc pavement of mix RMC- M-25/M-20

(m3)

Difference in rates

(` 4471.25 - ` 4369.25) (` 4323.95 - ` 4221.95)

Contractor’s percentage on

tendered amount + - (%age)

Financial Implication

(`)

Ex. Engg. M-IV, Central Zone

1 8/12.04.2010 81.41 102 (-) 10.23 % 7,454

2 9/12.04.2010 84.38 102 (-) 10.10 % 7,737

3 31/13.04.2010 92.15 102 (-) 1.99 % 9,212

4 30/13.04.2010 92.10 102 (-) 1.99 % 9,207

5 151/25.02.2009 73.93 102 (-) 1.99 % 7391

6 158/25.02.2009 63.44 102 (-) 1.99 % 6,342

7 159/25.02.2009 75.89 102 (-) 5.55 % 7,311

8 247/13.12.2011 61.78 102 (+) 33.99 % 8,443

Total 63,097

Ex. Engg. M-II, South Zone

9 5/20.04.2012 37.22 102 (+) 13.78 % 4,320

10 113/18.03.2011 79.14 102 (+) 2.91 % 8,307

11 120/23.10.2009 79.27 102 (-) 11.01 % 7,195

12 68/15.06.2011 168.90 102 (-) 3.77 % 16,578

13 116/23.10.2009 76.65 102 (-) 8.58 % 7,147

14 75/15.07.2011 218.42 102 (+) 25.05 % 27,860

15 84/25.06.2009 103.26 102 (-) 5.09 % 9,996

16 23/05.06.2009 61.19 102 (-) 8.54 % 5,708

98

17 20/05.06.2009 85.20 102 (-) 2.54 % 8,470

18 22/05.06.2009 74.50 102 (-) 3.33 % 7,346

19 17/05.06.2009 86.64 102 (-) 3.43 % 8,534

20 79/22.06.2009 97.91 102 (-) 5 % 9,487

21 29/05.06.2009 77.13 102 (-) 2.63 % 7,660

22 148/26.11.2009 57.76 102 (+) 21.99 % 7,187

23 21/05.06.2009 70.11 102 (-) 8.43 % 6,548

24 56/08.06.2009 80.21 102 (-) 2 % 8,018

25 99/30.09.2009 59.62 102 (+) 16.16 % 7,064

26 12/20.04.2011 127.81 102 (-) 5.15 % 12,365

27 28/05.06.2009 31.08 102 (-) 2 % 3,107

Total 172897

Grand Total 2,35,994

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REPORT OF THE CHIEF AUDITOR - WordPress.com · 2017-04-18 · land rates- ` 66.85 lakh. In 9 cases compounding fee amounting to ` 66,84,893 was recovered short due to incorrect application