Sunday, 4 December 2016

UP's development authorities’ refusal to CAG audit may trigger Centre-state spat

LUCKNOW: With UP’s development authorities refusing to allow the comptroller and auditor general (CAG) to conduct an audit of their account, the issue is all set to snowball into a Centre-state spat. While it was the Ghaziabad Development Authority which first refused the CAG audit, others follow suit soon.

CAG Shashi Kant Sharma was in Lucknow last week to discuss the matter with the state government officials. Although his visit was kept a closely guarded affair, sources told TOI that he discussed with the local officials the issue of the logjam over development authorities’ refusal, thus indicating that the matter would be pursued further. During his previous visit some time back, the CAG met Governor Ram Naik to apprise him about the issue, seeking his intervention.

About six months back, the CAG’s Lucknow office had written a letter to the state housing department and the development authorities seeking details for conducting an annual audit of their accounts. But the housing department as well as the GDA replied that the CAG was not empowered to conduct any audit as the state would be auditing the authorities on its own. “Since the development authorities don’t get any consolidated funds, the CAG cannot audit us,” was the official reply of the government to principal auditor Vineeta Mishra.

The principal auditor countered that the CAG was empowered under the direction of the President at Centre and the governor in states to conduct audit of the government offices and authorities receiving funds of Rs 1 crore or more from the government. Since development authorities get funds of Rs 1 crore or more from the government, they are liable for the CAG audit, Mishra’s reply said.

However, when despite repeated reminders, the development authorities didn’t cooperate the CAG roped in the governor, who also wrote to the state government, the prime minister and the Union finance ministry for their help in the matter. But there has been no response . A senior officer of the PAG office in Lucknow confirmed to TOI that the government had so far not allowed to conduct any audit.

“Development authorities have been audited by the CAG in the past, but they are now adamant fearing that role of their senior officers would come under the scanner for their role in large-scale allotment of lands in major cities,” a highly places source at PAG office says.

Now, the Raj Bhawan is actively considering to revive the issue by writing to the Centre again soon and force the development authorities to allow CAG to conduct their audit.

Source: ET Realty

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