Inspection Report on the audit of Transactions of Haldia Municipality for the period from 01.04.2013 to 31.03.2015
Haldia Municipality was established in the year 1983. The Municipality had a population of 200352 (2011 Census) under 26 wards spread over 109.65M2. Audit of the transactions of the Municipality covering the period from 01.04.2013 to 31.03.2015 was conducted under section 86 of the West Bengal Municipal Act, 1993 by Shri Amin Bhagat, Asstt. Audit Officer, Shri Debodeep Ray Chaudhuri Auditor during 27.07.15 to 12.08.15. Shri Dipak Kumar Das, Audit Officer supervised the audit.
"The Inspection Report has been prepared on the basis of information furnished and made available to audit by the Municipality. The Examiner of Local Accounts under Office of the Pr. Accountant General (G&SSA), West Bengal disclaims any responsibility for any misinformation and /or non-information on the part of the auditee".
The present body of the Municipality had taken charge on 26.06.2012. The incumbency in the key administrative and executive areas of the Municipality was as under:
Smt. Tamalika Panda Seth
01.04.2013 to 06.10.2013,
Shri Debaprasad Mondal
07.10.2013 to 31.03.2015
Shri Narayan Chandra Pramanik
01.04.2013 to 06.10.2013
Shri Gopal Ch. Das
Shri Jagatbandhu Das
20.06.2013 to 31.03.2015
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(i) Vacant Vacant
1.3 Status of Annual Accounts
In terms of the amendment of the West Bengal Municipal (Finance & Accounting) Rules, 1999 in January 2007, the Government of West Bengal introduced double entry accrual based accounting system in all urban local bodies (ULBs under Kolkata Metropolitan Area w.e.f. 2006-07 and other than KMA w.e.f. 2007-08) replacing existing system of single entry cash basis of accounting system vide Municipal Affairs Department's notification no. 12/MA/0/C-4/IA-B/2005 dt.5.1.2007.
In accordance with Govt. orders, the municipality prepared the Balance Sheets up to the year 2009-10 and the same was audited. The Balance Sheets for the subsequent years i.e. from 2010-11 and onwards have not been prepared till the closure of audit.
The municipality, in reply stated that appropriate action will be taken by the municipality to update the arrears.
Volume of Transaction as furnished by the Municipality (Figure in Rs.)
Details of balances of Banks and Treasury Accounts as on 31st March, 2015 (Figure in Rs.)
Balance as on
PNB Mid Day
The differences between cash book balances and Bank/Treasury pass book balances were reconciled. The reconciliation statement is enclosed herein as "Annexure-01".
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1.4 Recept & Expenditure Budget
(A) Expenditure Budget & Actual (as furnished by the municipality). (Figure in lakh
(B) Receipts Budget & Actual (as furnished by the Municipality)
(Figure in lakh)
(b) Share &
(C) Details of Own Source Year: 2013-14
(Rs in lakh.)
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1.5 Advance & Adjustment.
(Figure in Z)
There was a discrepancy of Rs. 5697585 in between closing balance of 2012 - 13 and opening balance of 2013-14 which may be reconciled and shown to next audit.
1.6 Debt Service / Loan Position as on 31.03.2015
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1.7. Position of Investment as on 31.03.15
(Figure in Rs.)
1.8 Ongoing Work
The Municipality furnished information in respect of ongoing works as on 31.03.2015 as shown in "Annex-02".
1.9 Thirteen Finance Commission Grant
Year -wise receipts and utilization of 13th FC Grants for the period 2013-15 as furnished by the Municipality are shown below:
(Amount in Rs.)
No & date of GO
88 dt 27-7-10, 342 dt 29-3-
169 dt 17-10-11
18 dt 15-5-12, 93 dt 13-7-
12 & 381 dt 22-2-13
1.10 Internal Control/ Internal Audit
No internal audit of accounts in the manner as prescribed in the Rule 24 (1) of the West Bengal Municipal (Finance & Accounting) Rules, 1999 was conducted during 2013-15.
1.11. Defalcation, loss, misappropriation of Municipal Fund
No defalcation, loss, misappropriation of Municipal Fund was detected from 01.04.2013 to close of audit. The Municipality also supported the fact.
Haldia Mupty/2013-15 Page 8
PART – I B
The present position of outstanding paras of earlier Inspection Reports is as follows:
The arrears demand for
holding rates had been
Short collection of rent
resulted in recurring annual
liability for T 68.32 lakh
Improper Cash Management
and insecured custody of the
Review of 12th Finance
Erroneous estimation in
1 (Part -11
building works resulted in
excess payment of T 33.61
Loss of T 35.43 lakh towards
lease rent and accumulation of
huge outstanding towards
lease rent to the tune of Z
70.62 lakh due to lenient
attitude towards the lessee by
the municipal authority
Failure on resource
mobilization led to huge
accumulation of outstanding
rent and Property Tax to the
tune of Z 3818.74 lakh - reg.
Non-collection of cess (Z'
242.58 lakh) under Building
and Other Construction
Workers' Welfare Cess Act,
1996 from building owners at
the time of sanction of
Review of Employment
Generation Scheme –
Diversion of Z 1.38 crore for
payment of Casual labour
Lack of Control Mechanism
in execution of PPP project in
the sector of Solid Waste
Failure to realise outstanding
dues of Z 13.65 lakh against a
lease hold asset named Akash
Lodge cum Hotel
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Poor progress in IHSDP led to
blockade of grant to the tune
of Z 99.96 lakh and other
Unauthenticated payment of
BY fund & other
Licenses issued u/sec 118 &
201 - irregularities thereof
Unrealised rent to the tune of
7 13.50 lakh towards vessel
service & undue advantage
given to leasee of two ferry
services & other irregularities
Irregularities in utilisation of
Govt. grants under NSAP
Fund & other irregularities
Improper disposal of night
soil leading to huge un-
hygienic condition with the
Loss of Z 1.09 lakh in last two
years towards payment of
Penalty for excess
consumption (DR Demand
Charge for Excess Drawal)
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Shortage of MDM rice stock
of 16.53 quintals amounting
to Z 0.26 lakh, loss towards
sale proceeds of gunny bags
& other irregularities thereof
I I (Part-
for the Urban Poor' scheme
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PART – II A
It was decided to construct one auditorium and Cultural complex at Bhavanipur with the financial assistance of Haldia Municipality and Haldia Development authority (HDA) at 50:50 funding ratio in the land of both HDA (4.00 acre) and Haldia Municpality (4.25 acres). Total cost of the project was 16,51,75,800.00 under supervision of Haldia Municipality Work order was issued to Haldia Development construction vide no 1179/HM/IX/4/08 dtd 12.06.08 for Rs 13,94,78,500.00
A sum of Rs 2,69,21,367.00 was paid to Haldia Development Construction for the construction of auditorium & Cultural complex at Bhavanipur in the form of following payments.
First RA Bill-1,41,39,832.00
2nd RA Bill-52,87,073.00
Following information, though requisitioned in respect of this construction was not made available to audit.
Approval of BOC to for construction of such cultural complex
Administrative approval and financial sanction of incurring expenditure
Sanctioned estimate and DPR
Tender procedure adopted containing the NIT, comparative statement, work order agreement made with the Contractor for construction of such complex
MB, completion certificate
Present status of the work and use of the same
However, after spending Rs 2.69, crore, the work was abandoned. As such, the expenditure incurred is treated as unfruitful.
The Municipality, in reply, admitted the fact and stated that the work will be started as soon as fund is available to the municipality.
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PART - II B
Normally works involving expenditure in excess of Rs 5,00,000.00 should be published through E-tendering. The municipality also took the resolution vide resolution no 17(3) held on 28.08.2014. In spite of that the municipality did not adopt the correct procedure. The municipality invited 230 tenders during the period 15.01.14 to 31.03.15 of 2013-15. Register before 15.01.14 was not made available to audit. The whole of works put to tender during the years of audit was not possible to go through; so 112 works whose estimated cost exceeded Rs 10.00 Lakh were considered for review. (Annex - 03)
On scrutiny the following points were noticed in audit in respect of Tendering process.
Thr Municipality, in reply stated that as per decision of BOC e-tendering was done for works of the fund received from the Govt only and no e-tendering was done for the works out of own fund.
Integrated Housing & Slum Development Programme aims at combining the existing schemes of VAMBAY and NSDP under the new IHSDP Scheme for having an integrated approach in ameliorating the conditions of the urban slum dwellers who do not possess adequate shelter and reside in dilapidated conditions.
The scheme is applicable to all cities and towns as per 2001 Census except cities/towns covered under Jawaharlal Nehru National Urban Renewal Mission (JNNURM)
The basic objective of the Scheme is to strive for holistic slum development with a healthy environment by providing adequate shelter and basic infrastructure facilities to the slum dwellers of the identified urban areas.
The scheme will apply to all cities/towns, excepting cities/towns covered under JNNURM. The target group under the scheme is slum dwellers from all sections of the community through a cluster approach.
Allocation of funds among States will be on the basis of the States' urban slum population to total urban slum population in the country.
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States may allocate funds to towns/cities basing on similar formula. However, funds would be provided to only those towns and cities where elections to local bodies have been held and elected bodies are in position.
The State Governments may prioritize towns and cities on the basis of their felt-need. While prioritizing towns, States would take into account existing infrastructure, economically and socially disadvantaged sections of the slum population and difficult areas.
Haldia municipality took up the work of IHSDP, the salient features of which were as follows:
As per DPR
Infrastructure Dev elopment
Fund mobilized and spent as of 31.03.15-Ph-I
From the above, the following short coming were noticed in audit.
Haldia municipality took up the works of IHSDP (Ph — II), the salient features of which were as follows
Components of DPR vis a vis achievements as on in 31.03.2015 were as follows:
Fund mobilized and spent as of 31.03.15-(Ph-II)
Balance actually remained in the bank as of 31.03.15 in the bank account of IHSDP –Ph-II maintained in I 0 B (account no 3923) for Rs 6850600 against the cash book balance of Rs 6481020. The balances were reconciled.
Execution of the project was delayed due to escalation of price for non availability of land, faulty drawing of community centre, indecision whether digester was to be constructed or not.
From the above, the following short comings were noticed in audit:
iv). Though the actual date of completion of the project was 26.09.10 but it is still in progress and delayed implementation of the project is attributed to non availability of land, faulty design of the community centre and indecision regarding whether digester was to be constructed or other.
The Municipality, in reply stated that fund was not diverted
The progress of the works and fund position may be shown to next FAP.
(i) Failure on resource mobilization led to huge accumulation of outstanding Property Tax to the tune of 4238.45
Since the implementation of the 74th Amendment Act 1992, the Govt. of India have envisioned that a ULB in coming times would be able to function independently both physically (executive and legislative) and financially. It is imperative for a Municipality to be able to meet its own requirements financially and physically. The Govt. (both the Central and the State) through several grants and funds wants the Municipality to create assets, which in coming days would provide continuous revenue for the Municipality. As such, the municipality should in words and deed act in this direction, so as to stand independent.
In course of audit several aspects provided evidence that the Municipality had failed to maximize its revenue collection and in some cases it failed to reach even its targeted goal.
4th Revisional Assessment of holdings of Haldia Municipality – Non – Assessment thereof:
The municipality through its letter vide No. 4676/HM/Assess/10 dated 05.03.2010 requested the Municipal Affairs Department to publish a notification for its 4th Revisional Assessment which would be due from 01.07.2011 and forwarded a copy of the same to the
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WBVB (West Bengal Valuation Board). The WBVB with reference to the above letter, on 18.03.2010, requested the Special Secretary, Govt of W.B, Municipal Affairs Department to publish the Notification at an early date so that the Board may proceed to finalise the publication of valuation list in scheduled time. The publication was made on 10.09.2010. On 29.09.2010 the WBVB requested the Chairman, Haldia municipality to provide them with their requirements for smooth functioning of their work. But, the municipality through the letter no.4124/HM/Asse/1 I dated 27.01.2011 requested the Secretary, Municipal Affairs Department that most of the staff of the municipality were already engaged in the Census and Assembly elections. They further requested for permission to continue the existing rate of property tax after 30.06.2011 and a further period of one year for field survey to be allowed to them.
It was observed in Audit that even after the passage of more than 48 months from the scheduled date of effect of 4th Revision of Assessment of land and buildings of the local body, the field survey work of big concerns have not yet been completed. Thus, the Municipality have been continuously losing huge sum towards property tax due to delay in assessment.
A statement showing details of demand, collection of Property Tax for the years 2013-14 & 2014 — 2015 as furnished to audit are given below:
% of Collection
There is a discrepancy between closing balance of 2013-14 and opening balance of 201415 which is to be reconciled.
The overall collection percentage remained at a meager 34.50% as on 31.03.15 (against 39.06% of 2012-13). This resulted in huge accumulation of outstanding dues to the tune of 4238.45 lakh.
Rebate for Rs 35213564.00 was allowed in the following way.
Year Amount Rs.
Total 35213564 On going through the data base of the Property Tax, the following points were revealed:
Allowing remission/rebate or reconstruction of tax liability, to non - Govt institution could not be under stood in audit.
The Municipality, in reply, stated that due to political disturbances, appropriate action could not be taken.
(ii) Outstanding rent of markets amounting to Rs. 43.68 lakh.
The Municipality has a total of 11 markets. The collection from the above markets remained unsatisfactory as it reflected an average collection of 37.9% during the year 2014-15.
There was a total of un-realized rent to the tune of Rs 43,68,397 as placed below.
r Baiz -
As per records provided to audit, it was observed that a total of 25 stall holders have rents due for over 2 years to the tune of Rs 2,79,440, ( Annexure- 4).
Reason for such poor collection was laxity in raising demand and persuasion to realize the same.
The Municipality, in reply accepted the fact and stated that necessary action in respect of collection would be taken shortly.
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(iii) Unrealized rent from different housing complexes to the tune of Rs. 77.70 lakh.
The municipality collects house rents from 7 housing complexes, viz Banalata Housing Complex, Banalata New Housing Complex, Durgachak Housing, Mohona Residential Complex, Grihahin Prakalpa, Individual Property and Working Women's Hostel. It was observed that an amount of Rs. 77,70,373/- was outstanding as on 31.03.15 as detailed below:
From the above it was noticed in audit that
The Municipality, in reply, accepted the fact and stated that necessary action in respect of enhancement of collection would be taken shortly.
(iv) Poor collection from Akash lodge -outstanding dues to the tune of Rs.18.58 lakh
As per the previous Inspection Report for the years 2010-2013, Haldia Municipality with a view to augment its own source revenue started to build a Lodge cum Hotel at Debhog, Haldia. The Lodge cum Hotel was named as Akash Lodge cum Hotel. The work for the construction of two storied Lodge cum Hotel building started in October 1996 and the ground floor was completed in March 1999. The first floor was completed by November 1999. The whole two storied building along with its all ancillary works was completed in 5 phases up to April 2001. Again the Municipality decided to improve the Akash Lodge cum Hotel and expand the same vertically upto 4th floor in December 2010 at an estimated cost of ! 1.17 crore. The total cost of construction stood at ! 1.15 crore for the earlier two storied building. The work was nearing completion as of April 2013.
The lodge was leased out to one private party in May 2002 on basis of Board of Councilors (BOC) resolution of the Haldia Municipality in November 2002. The period of lease year was for 8 years starting from May 2002. The condition of the lease was that the lessee i.e. the private party was to pay to the Municipality a one time consideration amount for taking the lease of ! 10 lakh. Again the lessee had to pay the Municipality a fixed rent of 15,000 per month for the first three (3) years and ! 16,500 per month for the next five (5) years. A penal interest of five (5) percent per month would be imposed on the private party on unpaid fixed monthly rent. The lease was due to be over by March 2010.
As per the previous Inspection Report for the year 2011-2013 the private operator who got the lease did not deposit the one time consideration money of! 10 lakh. It was also observed that the private operator never gave any monthly rent whatsoever since the inception of lease period till to its closure. The sum thus due from them till the closure of the lease period was ! 13.63 lakh'. An adjustment of bill for ongoing works which was being done by the same private party in June 2006 to the tune of ! 10.65 lakh by the Haldia Municipality to recover outstanding dues from the private party i.e. the lessee. Thus the principal outstanding monthly rent stood at ! 2.98 lakh at the time of expiration of the lease deed. It was found that contrary to the lease agreement the Haldia Municipality never calculated the penal interest that had to be imposed on the private party i.e. lessee for not paying the fixed monthly rent. The interest calculated for the entire lease period was 0.67 lakh2. After completion of first lease term in the year March, 2010, the document of handing over the property to the Municipality was not found on records. Thus, the monthly rent to the tune of Rs. 493350.00 @Rs.12650 per month (as per previous
1 From May 2002 to April 2005= Rs.15000*36=Rs.540000; From May 2005 to Dec 2006=Rs.16500*20=Rs.330000; As their lease hold premises of 12000 sq.ft. was curtailed by 2800 sq.ft. the due from Jan 2007 to Mar 2010 was paged at Rs.12650*39=Rs. 493350
2 From May 2002 to April 2005= Rs.15000*5%*36-F-Rs.16500*5%*20+Rs.12650*5/039=Rs.0.67 lakh rounded off
Haldia Mupty/2013-15 Page 24
month) from April, 2010 to July, 2013, i.e., for 39 months was to be paid by the lessee. As such. the total outstanding due up to July, 2013 as the property was leased out for the second time in the month of August, 2013. Hence, the total outstanding amount worked out till July, 2013 was to the tune of Rs18.58 lakh'. Amount would have been more, if interest element would be considered till date of audit.
Thus, Haldia Municipality built an asset to augment their own source revenue at a cost of
2.32 crore. The asset since its first phase completion in April 2001 to till date yielded only
10.65 lakh. Again, the work of second phase construction of 2nd, 3rd and 4th floor of the Akash Lodge cum Hotel was awarded to the same private party who was given the lease of the erstwhile two storied Akash Lodge cum Hotel. Thus, the scope of recovering the outstanding dues from this particular private party from the on-going works bill was available with the Municipality. But the municipality did not enforce it for which reasons was not found on record.
Thus, the municipality let off a private party having outstanding dues of Rs. 18.58 lakh to the Municipality.
The municipality could not furnish fruitful reply.
(v) Poor collections of Hoarding/advertisement tax & other irregularities.
Hoarding rent is one potent source of revenue, so the database of the suitable places after proper survey is to be prepared. The Municipality did neither make such survey nor the municipality have the records where the present hoardings are existing. Resultantly the collection under this component of revenue is very poor as given below.
Proper action is to be taken in regards
(vi) (A)Non-collection of stacking fee resulted in a minimum loss of revenue to the tune of Rs. 49.87 Iakh
(B) Non-collection of building site plan approval fee of a minimum amount of Rs.1.61 lakh.
(A) (1) As per rule 25 of the West Bengal Municipal (Building) rules 2007, the Municipality may specify rates at which Stacking Fee payable in respect of permission for stacking.
Rs.10.00 lakh + Rs. 2.98 lakh + Rs. 0.67 lakh+ 4.93 lakh--Rs. 18.58 Iakh
Depositing any building materials including rubbish in any street shall be charged and different rates may be specified for different categories of streets subject to minimum 10% and Maximum 50% of building plan sanction fee per month.
Building plan sanction fee collected by the Haldia Municipality during the years 2013-2015 are given below:
No. of plans
It would be evident from the above table that the Haldia Municipality sanctioned 805 nos. of building erection plan and collected Rs. 8311907.00 as plan sanction fee.
Scrutiny of the building plan sanction registers transpired that the Municipality did not collect stacking fee from the applicants resulting in minimum revenue loss to the tune of Rs.49.87 lakh [(8311907*10/100]*6 (assuming that the building was completed within six month)The calculation of stacking fee was done considering the minimum rate 10% of plan sanction fee per month.
(B) As per the rule 4 of the West Bengal Municipal (Building) Rules, 2007-
The applicant may simultaneously submit the site plan and the building and the building plan to the Municipality for approval at his own cost. But the Municipality shall consider the building plan submitted for approval only after the site plan is approved. In case the site plan is not approved, the submitted building plan shall also be treated as not approved.
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On scrutiny of the relevant records it was observed that the Municipality approved 805 nos. of building site plan but did not collect the site plan approval fee from the applicants to the tune of a minimum amount of Rs.161000.00 (805*200). The reason for the same was not found on records.
The Municipality, in reply, accepted the fact and stated that necessary action in respect of enhancement of collection would be taken after palcing it in the BOC.
(vii) Leased land rent — failure to augment own fund of Rs -47.99 lakh.
Haldia Municipality has many land properties under its control. On audit of transactions of the Haldia Municipality for the period 2013-15, the following points were revealed in connection with collection of land rents
Rent from land
The Municipality, in reply, accepted the fact and stated that necessary records will be placed to next audit.
(viii) Licenses issued u/sec 118 & 201 — irregularities thereof.
As per Section 118 of the West Bengal Municipal Act, 1993, every person engaged or intending to be engaged in any profession, trade or calling in a Municipal area should obtain a certificate of enlistment and get the same renewed annually.
n 16.7 Page 27
(a) The collection of revenue from the enlistment of trade, Profession and callings under Section 118 (as furnished by the Municipality) for the last six years (2009-10 to 2014-15) were as follows:
C osing Balance
There is a discrepancy of figures in between closing balance & opening balance of next year during 2009-15 which are to be reconciled.
(b) The collection of revenue from the use of premises for non-residential purposes (u/sec 201) (as furnished by the municipality) for the last six years (2009-10 to 2014-15) were as follows:
Haldia Mupty/201 3-15
There is a discrepancy of figures in between closing balance and opening balance of next year which are to be reconciled.
(c) It was observed that the Municipality does not serve demand notice to the stall owners in regular basis. No camps / special drive was organized to enhance the collection and enhance the number of enlistments. The collections were only made at the Municipality office building. No field survey was done by the concerned department. No notice was served to the stall/shop holders who used to run their businesses in the municipal area, without enlistment of their trade.
The numbers of new enlistments, renewal, cancellation etc. for licenses u/sec 118 for the last six years (2009-10 to 2014-15) (as furnished by the municipality) were as follows:
Licences not renewed
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Further, it was observed that a total no. of 3545 licences were not renewed as on 31st March, 2015. It could not be ascertained from the available records that whether all the shops/stalls operating in the Municipal area had been enlisted or not.
The Municipality obtained Rs. 100 as penalty from the defaulters who did not renew their licenses at the due time irrespective of the fact that they renewed their licenses after 02 years or more. Reasons for charging at uniform rate were not found on records.
It was also observed that there is no co-ordination between the assessment department and the licence departments, as the licences under sec 201 are issued by the licence department without any consultation with the assessment department about the assessment of the particular holding as commercial/partly commercial.
The municipality, in reply, accepted the fact and stated that necessary steps for issueing demand notice and coordination will be made with the assessment Department
Department of Municipal Affairs, Government of West Bengal vide its letter No. 475(126)/MA/O/C-4/2E-2/2006 dated 28.09.2006 addressed to the Mayors/Chairmen of the Urban Local Bodies and intimated that the Government of India enacted two Acts namely the Building and other Construction Workers (Regulation of Employment and Conditions of Service) Act, 1996 and the Building and Other Construction Workers Welfare Cess Act, 1996 for the purpose of providing for various benefits and concessions to the Construction Workers.
Two rules namely the West Bengal Building and other Construction Workers (Regulation of Employment and Conditions of Service) Rules. 2004 and the West Bengal Building and Other Construction Workers Welfare Cess Rules, 1998 were framed under the said Acts.
As per G.O. No. 639(126)/MA/O/C-4/2E-2/06 dated 24th December 2007 issued by Department of Municipal Affairs, Government of West Bengal, every Local Body should collect cess 1 % of the cost of construction (if the total cost of such construction is more than Rupees ten lakh) along with the application for sanction of building plans. It was also specified therein that whoever being liable to pay cess under this Act, willfully or intentionally evades or attempts to evade the payment of such cess shall be punishable with imprisonment which may extend to six months or with fine or with both.
Besides, for the purpose of determination of the cost of construction (Foundation, plinth and superstructure (complete work), if the same is not specified along with the building plan submitted for sanction, the following guidelines are to be followed by the ULBs, as per order of the Department of Municipal Affairs, Government of West Bengal‑
Non-Kolkata Metropolitan Development Area
With IPS Flooring Rs. 4560/- per square meter
Scrutiny of records revealed that Haldia Municipality did not recover any amount of cess as per the GO No. 639(126)/MA/O/C-4/2E-2/06 dated 24.12.2007 while approving the building plan during the period under audit.
There was a mention of non deduction of cess of Rs 242.58 lakh in the previous inspection report for the period 2010-11 to 2012-13.
The Municipality at the instance of audit started deduction of cess from construction cost but commercial & industrial constructions were excluded.
Audit in this respect reiterate that the definition of building & other construction work includes construction, alteration, repairs, maintenance, demolition, of buildings, streets, roads, railways, tramways, airfields, irrigation, embankments and navigation works, flood control works, generation, transmission, distribution of power, water works, oil & gas installation, electrical lines, wireless, radio, television telephones, telegraph and overseas construction dams, canals, reservoirs, water course, tunnels, bridges, viaducts, aqueducts, pipelines, towers, cooling towers, transmission tower etc.
As such there is no scope of excluding commercial & industrial constructions.
It was noticed that the municipality not only failed to recover the cess amount of earlier 242.58 lakh during 2010-13 but also failed this time to deduct the cess amount of Rs 57.35 lakh during 2013-15 (Annex-06).
The Municipal authority needs to ensure that the cess gets collected invariably henceforth while sanctioning building plans and remitted to the Government within 30 days from the date of collection after deduction of collection expenses not more than 1% of the collected amount, as per rule.
As such, the municipality faced a loss of Rs 0.574 lakh being 1 % of unrecovered cess during 2013-15.
The municipality, in reply, accepted the fact and stated that necessary action in respect of collection of cess would be taken shortly.
Under this scheme, namely "West Bengal Urban Employment Scheme" unemployed persons from Urban Local Bodies were to be engaged directly in various infrastructure development projects taken up under this "Scheme" and also any other projects taken up by Municipalities/Municipal Corporation in terms of various State Government approved programmes . They were also to be engaged for supervision of various development projects taken up by the Municipalities and Municipal Corporations under this "Scheme
No contractors were to be engaged for any project taken up under this "Scheme"
The works under this "Scheme" were to be done directly by the ULBs or by way of involving the ward Committee or Area Sabha Committee or Neighborhood Committee or Community Development Societies.
Urban Local Bodies, if they deem fit. may involve various State Government Departments or development Authorities for execution of the projects taken up under this scheme.
The wage component and material component of the projects taken up under the "Scheme" should be adhered to 50:50 proportions within the overall allocation for a particular ULB. However, care should be taken to maintain the proportion 50:50 to individual projects as well to the extent possible. Deviation, however, is permissible for percentage of wage employment.
Receipts and expenditure as per the appropriation register maintained by the Haldia Municipality during the years 2013-2015 were as under:‑
Statement of receipt and expenditure under the WB U E S
It would be evident from the above table that an amount of Rs.17201500.00 of the fund remained unspent as on 31.03.15. Though the Municipality received the amount through Govt. Orders for General, SC and ST Categories separately but the Municipality did not apportion the same accordingly. The "Appropriation Register" transpired that the works done were related to cleaning of drains and a few other works only. Other sectors of permissible works like maintenance of roads, infrastructural development of slums, solid waste management, Construction and maintenance of various community centers like health centers, markets, beautification of parks, canals, rivers, gardens and plantation of trees, preservation of water bodies and cleaning of surface drains etc. were totally overlooked. It indicated that the implementation of the scheme was done without comprehensive planning..
Further scrutiny of the implementation of schemes the following irregularities, in contravention to the guidelines issued by the Finance Department, Govt. of West Bengal vide Order No. 130 dt.12.08.2005, were also noticed:-
The Municipality did not submit any vetted estimate of individual scheme/work along with the recommendation of Ward Committees and B.O.Cs' resolution to the Municipal Affairs Department. Scheme was not at all prepared.
Thus, the Municipality failed in adhering to the guidelines of the scheme frustrating the some desirable infrastructural works.
The Municipality, in reply accepted the fact but did not cite fruitful reply in support of non preparation of scheme and not taking measurement of the works.
The mid-day-meal programme (MDM) was designed with a view to enhancing enrolment, retention and attendance and simultaneously improving nutritional levels among children of lower and upper primary schools. Central Assistance under the scheme consisted of the following: (a) free supply of food grains @ 100/150 grams per child per school day, and (b) subsidy for transportation of food grains. In addition to food grains, mid-day meal involves two other major inputs:‑
In this programme (MDM) it was designed for distribution of rice or cooked food to the students to boost the universalisation of primary education by increasing enrolment and attendance and simultaneously impact on nutrition of students in primary classes. The Central Government assists the local authority by providing subsidized rice for implementation of the Mid-day-Meal Programme within the Municipal area from the nearest Food Corporation of India (FCI) Go-down through authorized distributor. The allocation of rice was made based on 85% of enrolment. The Municipality/Corporation would supervise and monitor the whole process and would collect utilization certificate from each school for compilation and onward transmission to the district authority.
(a) Financial outlay of the programme under supervision of Haldia Municipality during 2013-2015
(B) Disbursement of fund
The following irregularities were observed on scrutiny of the relevant records:‑
Non-monitoring over stock of rice: Rice is lifted by two dealers namely Bandana Pramanik and Pragati Maity from FCI godown, Midnapur. Arrangement for keeping rice is made by the dealers themselves. After getting requisition for rice from the schools, delivery orders are placed before the dealers by the Municipality to deliver rice to schools. After delivery of rice delivery challans are not submitted by the dealers to the Municipality. The stock position of rice is not maintained by the Municipality leaving the chances of misappropriation of rice.
The municipality accepted the fact and stated that necessary action will be taken in respect of monitoring over stock of rice.
Position of balance in PF as on 31.03.2014 & 31.03.2015 in respect of Haldia Municipality were as below.
(A) Balance as per abstract of Ledger
(B) Balance as per abstract of Ledger and Balance as per Treasury Pass Book
Closing Balance as
Balance as per
per abstract of
From above it would be evident that
The municipality accepted the fact and stated that the difference as shown was due to non payment of interest from Govt for the period from October86 to November'94 for non inclusion of the fund of N.A.A.
All minor irregularities were settled during the course of audit.
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