CAG unveils undivided Andhra Pradesh lapses

Hyderabad: The Comptroller and Auditor General’s audit report for the year ending March 2013 has found major lapses on the part of Andhra Pradesh government in the undivided state, which resulted in losses of over Rs 1,726 crore to the state exchequer.

The CAG has found serious lapses such as non levy/short-levy of taxes, duties etc. in various departments with regard to Value Added Tax, land revenue, prohibition and excise, taxes on vehicles, stamp duty and registration fees.

The six CAG reports on revenue, economic sector, public sector undertakings, local bodies, general and social sectors and directorate of mines and geology were tabled in the Telangana Legislative Assembly on Friday.

With regard to sales tax/VAT, the audit revealed that in 17 circles of commercial taxes department, 70 builders had paid tax at lower rates which resulted in the evasion of taxes of Rs 30.78 crore.

In eight offices of prohibition and excise superintendents, additional licence fee amounting to Rs 9.44 crore was not levied on 54 bar and restaurants.

In nine revenue divisional offices where government lands to the extent of 4430.41 acres were alienated in favour of 62 allottees, conversion tax of Rs 28.93 crore was not realised.

In Chevella division alone, demand notices involving conversion tax and penalty of Rs 20.49 crore in respect of two cases were not issued.

In 16 divisions, involving 3,977 cases covering 40,573 acres of land converted for non-agricultural purposes, conversion tax and penalty amounting to Rs 1,047.28 crore was not levied.

Conversion tax and penalty of Rs 84.54 crore was not levied in respect to 1,441 mining/quarrying leases granted/ executed between January 2006 and March 2012, covering an area of 13,153.82 acres.

Quarterly tax of Rs 10.32 crore and penalty of Rs 20.65 crore were not realised from owners of 6,447 transport vehicles.

Non-renewal of fitness certificates of 58,930 transport vehicles resulted in non-realisation of fees of Rs 1.75 crore.

Stamp duty was not levied on cost of improvements made by five lessees resulting in short levy of duties of Rs 16.37 crore.

Declaration of lesser annual rent in lease deeds than the actual rent received in 23 corresponding sale deeds and four gift deeds resulted in short levy of stamp duty and registration fees by Rs 23.64 crore.

Exclusion of development premium, development fee, conveyance of cash etc. from recitals of documents on various distinct matters resulted in non-levy of stamp duty and registration fees of Rs 33.21 crore.

Misclassification of development agreement-cum-general power of Attorney/sale deed/other documents resulted in short levy of duties to the tune of Rs 67.34 crore.

The weaker section housing schemes, social security pension schemes, irrigation department works, implementation of RTE Act and the functioning of some PSUs also came under scrutiny.

Indiramma Houses, a flagship programme of the earlier Congress government, failed to achieve the its objective even six years after its launch in 2006, the CAG observed.

Of the 64,32,106 houses sanctioned between 2006-07 and 2012-13, only 43,18,310 were completed.

“The government had not released budgetary allocation in full in any of the years during 2008-13. While a provision of Rs 10,187 crore was made in the annual budgets from 2008-09 to 2012-13 for Indiramma houses, only Rs 7,433 crore was released, marking a shortfall of Rs 2,753.50 crore,” the CAG report pointed out.