Kerala state finance dept warns PSEs over audit delays, threatens to withhold grants
A circular by Additional Chief Secretary (Finance) K R Jyothilal warned of withholding future grants to organisations failing to do so. It directed secretaries of administrative departments to ensure the direction is followed by the PSEs under their control. The circular cited the CAG's observations in the State Finances Audit Report 2022-23 that had flagged the issue. The report, tabled in the assembly this March, had pointed out that 24 autonomous bodies had not submitted annual accounts to the CAG and 79 accounts were pending for one to 10 years.
The CAG report had said only 16 of 131 PSEs submitted accounts for audit. This constituted 12.21% of the total PSEs under CAG's audit jurisdiction.
The circular asked all PSUs as well as autonomous bodies to ensure their accounts are up to date and 50% of the pending audit paras/annual accounts should be reduced/completed within September 30.
'Any lapse will be viewed seriously, the finance officers concerned will be held responsible and will lead to denial of further access to government grants and funds,' it said.
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Time of India
3 hours ago
- Time of India
Railway Ministry understated its working expenditure in 2022-23: CAG Report
Railway's total earnings and expenditure from its operations when compared with its cross subsidising records showed that it understated its expenditure in the financial year 2022-23 by more than 5,000 crore, the Comptroller and Auditor General's report, recently tabled in the Parliament, has revealed. The CAG found that while the Railways, after working out its earnings and expenditures, presented a net profit of Rs 2,517.38 crore, when the loss in passenger services was compensated with the profit from freight services, it showed a net loss of Rs 5,257.07 crore. The audit showed that Railways' total working expenditure (including appropriation to various funds) stood at Rs 2,37,659.58 crore whereas its earnings from passenger, coaching, freight and other services were Rs 2,40,176.96 crore generating a surplus of Rs 2,517.38 crore. On the other hand, fiscal records related to cross subsidisation of passenger and other coaching services reflected that total expenditure in operation of all types of trains (passenger, coaching and goods) was Rs 2,45,393.71 crore and total revenue receipt (earnings) from all trains and sundry services was Rs 2,40,136.64 crore, incurring a loss of Rs 5,257 crore. "From the above, it may be observed that the total working expenditure in the summary of fiscal transactions has been understated," the CAG said. Live Events It added, "The understated expenditure will not reflect true Operating Ratio (OR). Taking into account the understated expenditure the OR would be 101.33." The audit found that when taking into account the net profit of Rs 2,517.38 crore, the Railways OR was 98.10 per cent. "A higher ratio indicates a poorer ability to generate surplus. Against the target of 96.98 per cent in the Budget Estimates, the OR of Railways was 98.10 per cent in 2022-23. This meant that Railways spent ₹ 98.10 to earn ₹ 100.00," the report said. According to the summary of cross subsidisation, Railways generated Rs 74,289.66 crore from all passenger operation services and Rs 1,65,846.98 crore from freight operations, making Rs 2,40,136.64 crore as total revenue receipts in 2022-23. In so far as its expenses were concerned, its expenditure on goods services stood at Rs 1,11,062.87 crore and passenger services at Rs 1,34,330.84 crore making a total of Rs 2,45,393.71 crore. The financial record further suggested that the Railway made a loss of Rs 60,041.18 crore from passenger services while it registered a profit of Rs 54,784 crore in goods services. "The loss of ₹ 5,257.07 crore in passenger operations was left uncovered during 2022-23. The profit from freight traffic was utilised to cross-subsidise the loss on operation of passenger and other coaching services," the audit said. The report also recorded the biggest operational loss from the Sleeper Class, Ordinary Class, and Second Class which stood at Rs 17,819.21 crore, Rs 17,076.90 crore and Rs 16,357.02 crore.
Hindustan Times
3 hours ago
- Hindustan Times
Railway Ministry understated its working expenditure in 2022-23: CAG Report
New Delhi, Railway's total earnings and expenditure from its operations when compared with its cross subsidising records showed that it understated its expenditure in the financial year 2022-23 by more then 5,000 crore, the Comptroller and Auditor General's report, recently tabled in the Parliament, has revealed. Railway Ministry understated its working expenditure in 2022-23: CAG Report The CAG found that while the Railways, after working out its earnings and expenditures, presented a net profit of ₹2,517.38 crore, when the loss in passenger services was compensated with the profit from freight services, it showed a net loss of ₹5,257.07 crore. The audit showed that Railways' total working expenditure stood at ₹2,37,659.58 crore whereas its earnings from passenger, coaching, freight and other services were ₹2,40,176.96 crore generating a surplus of ₹2,517.38 crore. On the other hand, fiscal records related to cross subsidisation of passenger and other coaching services reflected that total expenditure in operation of all types of trains was ₹2,45,393.71 crore and total revenue receipt from all trains and sundry services was ₹2,40,136.64 crore, incurring a loss of ₹5,257 crore. "From the above, it may be observed that the total working expenditure in the summary of fiscal transactions has been understated," the CAG said. It added, "The understated expenditure will not reflect true Operating Ratio . Taking into account the understated expenditure the OR would be 101.33." The audit found that when taking into account the net profit of ₹2,517.38 crore, the Railways OR was 98.10 per cent. "A higher ratio indicates a poorer ability to generate surplus. Against the target of 96.98 per cent in the Budget Estimates, the OR of Railways was 98.10 per cent in 2022-23. This meant that Railways spent ₹ 98.10 to earn ₹ 100.00," the report said. According to the summary of cross subsidisation, Railways generated ₹74,289.66 crore from all passenger operation services and ₹1,65,846.98 crore from freight operations, making ₹2,40,136.64 crore as total revenue receipts in 2022-23. In so far as its expenses were concerned, its expenditure on goods services stood at ₹1,11,062.87 crore and passenger services at ₹1,34,330.84 crore making a total of ₹2,45,393.71 crore. The financial record further suggested that the Railway made a loss of ₹60,041.18 crore from passenger services while it registered a profit of ₹54,784 crore in goods services. "The loss of ₹ 5,257.07 crore in passenger operations was left uncovered during 2022-23. The profit from freight traffic was utilised to cross-subsidise the loss on operation of passenger and other coaching services," the audit said. The report also recorded the biggest operational loss from the Sleeper Class, Ordinary Class, and Second Class which stood at ₹17,819.21 crore, ₹17,076.90 crore and ₹16,357.02 crore. This article was generated from an automated news agency feed without modifications to text.
Economic Times
5 hours ago
- Economic Times
CAG finds Greater Noida authority failed to restrict farmhouses on protected Hindon floodplain
The Comptroller and Auditor General criticised Greater Noida Industrial Development Authority. GNIDA permitted construction on the Hindon floodplain. This area should have been conserved. GNIDA enabled farmhouse development in prohibited zones. This led to environmental and regulatory violations. Schemes violated conservation rules. GNIDA launched schemes in 2011 and 2015. These actions ignored government and tribunal directives. Tired of too many ads? Remove Ads Schemes violated conservation regulations Ignored government and tribunal directives Tired of too many ads? Remove Ads Land allotment and financial irregularities Encroachments under Krishi scheme Tired of too many ads? Remove Ads Audit conclusions The Greater Noida Industrial Development Authority (GNIDA) has come under sharp criticism from the Comptroller and Auditor General (CAG) for allowing construction on the Hindon floodplain — a zone meant for natural conservation, reported by TOI. Instead of protecting these ecologically sensitive areas, GNIDA enabled the development of farmhouse plots in prohibited zones, leading to major environmental and regulatory violations, according to a CAG launched the 'Institutional Farmhouses' scheme in 2011 and the 'Krishi Farmhouses' scheme in 2015, both in violation of existing norms. Though initially intended for temporary structures, the schemes led to the construction of permanent houses, shops, and polluting workshops. In Haibatpur village, farmhouses were permitted as close as 130 metres from the Hindon audit referenced the Regional Plan 2021 , which classifies the Hindon floodplain as a natural conservation zone . Only restricted activities such as farming and afforestation are permitted, with a construction cap of 0.5%. Construction or habitation on riverbanks, riverbeds, or floodplains is strictly actions disregarded several regulations, including a 2010 state government order directing development authorities to designate floodplain areas as green zones in Master Plans and ban construction. A 2013 interim order from the National Green Tribunal imposed a construction ban on Yamuna and Hindon floodplains, reinforced in 2016 by a central government notification prohibiting construction along the Ganga and its active these orders, GNIDA labelled Hindon floodplain land as "agricultural use" in its Master Plan 2021 and introduced the farmhouse the Institutional Farmhouses scheme, GNIDA allotted three large plots totalling 13.5 lakh square metres. These went to an SDS Infratech-led consortium (FH-1), Gaursons India (FH-2), and Gaursons Hi-tech Infrastructure (FH-3). As of April 2021, the total dues had reached Rs 598 FH-1 was cancelled in 2017 for non-payment, the matter remains in court. FH-2 and FH-3 were not cancelled despite outstanding dues. FH-3 was later downsized due to GNIDA's lack of possession over some parts of the audit also found that GNIDA allotted plots without confirming clear land ownership. At the time of allotment, portions of FH-1 were already under development, and parts of FH-2 and FH-3 were either encroached, under litigation, or not yet acquired. Despite this, GNIDA allowed developers to mortgage the land — even when dues remained unpaid — a practice criticised by the Supreme Court in the Amrapali was mortgaged with the condition that banks would pay Rs 107 crore in dues, which never materialised. Layout approvals revealed 91 farmhouses across FH-2 and FH-3, with permanent construction on over 1.5 lakh square metres of Krishi Farmhouses scheme , launched in May 2015, targeted farmers whose land had been acquired. Nine plots totalling 84,047 square metres were allotted in Haibatpur village. These plots were between 130 to 553 metres from the Hindon riverbank. Satellite imagery and inspections in 2019 revealed dense encroachments, including permanent homes and commercial acknowledged the encroachments in 2015 and 2016 but failed to take corrective action. In 2019, the board opted to cancel the scheme and refund allottees with 4% interest. By 2021, eight refunds had been processed; one remained pending in April 2021, total dues under both schemes stood at Rs 646 crore. Despite large-scale defaults and repeated violations, most developers faced no serious action. Construction on many plots remained incomplete even after a audit concluded that GNIDA had failed to fulfil its core responsibility of protecting green buffers and floodplain zones, instead facilitating their conversion into unauthorised farmhouse developments while allowing significant financial and regulatory lapses to persist.(With inputs from TOI)
