Chandigarh Transport Undertaking ‘drove away’ ₹ 1.27 crore by leaving ISBT shops vacant: Audit
In the Sector-17 inter-state bus terminus (ISBT), as many as 11 shops and in Sector 43, 8 shops remained vacant in the year 2023-24, causing a loss of ₹1.27 crore
An audit report of the Comptroller and Auditor General of India (CAG) has pointed out that Chandigarh Transport Undertaking (CTU) has suffered financial losses on various accounts. CTU suffered a loss of ₹1.27 crore due to vacant shops at Sector 17 and 43. The audit was carried for 2023-24.
CTU operates two main bus stands at Sector 17 and Sector 43, where shops and office spaces are provided on rent for periods ranging from one to five years. In Sector 17, as many as 11 shops and in Sector 43, 8 shops remained vacant in the year 2023-24, causing a loss of ₹1.27 crore. These rental agreements include provisions for extension, as per the terms of the agreement, at rents fixed based on the size of the shop, office, or site. Most agreements include a clause for an annual increment of 10%. CTU collects an earnest money deposit (EMD) before allotment, which is conducted through an auction process. Each shop is assigned a minimum reserve price per month, excluding applicable taxes.
RTI activist RK Garg, who procured the report under the RTI Act, said, UT administration should take the audit objections seriously, as such lapses are resulting in substantial financial losses.
₹64 lakh not recovered from govt depts
CTU provides a facility for special booking of buses based on demand from various government departments and other organisations. During a test check of records related to CTU buses booked by government departments and institutions for special purposes, it was observed that an amount of ₹ 91,63,657 was outstanding from Depot-3, ₹ 1,06,02,498 from Depot-1, and ₹ 14,38,841 from other government departments and institutions. These amounts, totaling ₹ 2,16,23,006, were recoverable as of March 31, 2023. Additionally, bills amounting to ₹ 1.73 crore was raised by CTU during the period of April 1, 2023 to March 31st, 2024. Out of the total ₹ 2.79 crore, a recovery of ₹ 2.16 crore was made, leaving a balance of ₹ 64 lakh.
₹ 1.72 crore tax payment could be avoided
The Punjab transport department has fixed the rate of motor vehicle tax (MVT) per kilometre (km), per vehicle per day, for stage carriage buses coming from other states into Punjab. Under a reciprocal agreement, the rate is ₹ 3.53 per km per vehicle per day for the permitted distance. Without a reciprocal agreement, the rate is ₹ 6.03 per km per vehicle per day, effective December 29, 2014, and payable at the end of each month.
During a test check of records maintained by the CTU for the year 2023-24, it was observed that they frequently operated stage carriage buses in Punjab on routes that were not countersigned under the reciprocal agreement. As a result, MVT was paid at the higher rate of ₹6.03 per km. A total distance of 26 lakh km was covered outside the reciprocal agreement, leading to a payment of ₹ 1.67 crore (including 10% cess) as MVT.
It is pertinent to mention that a similar audit objection was raised in the report for the years up to 2021-23, where an avoidable loss of revenue was noted due to the same reasons. Similarly, during the audit period 2023-24, an amount of over ₹69 lakh was paid as MVT at higher rates, resulting in a cumulative avoidable payment of ₹ 1.72 crore.
Biometric attendence machines gone kaput
During a test check of records at the office of the CTU director, for the audit period 2023-24, it was observed that 28 biometric machines were purchased for ₹4,97,567 in August 2022. However, these machines have not been used since March 2024, and employees have been marking attendance manually. The department made no effort to repair the machines, the report highlighted.