Latest news with #Certificates
Indian Express
3 days ago
- Politics
- Indian Express
Opposition alleges Rs 70,000 crore scam as CAG flags accounting lapses in poll-bound Bihar
Just months ahead of the upcoming Assembly election in Bihar, the Comptroller and Auditor General (CAG) of India has flagged massive accounting lapses in the state's finances. The CAG has reported that as of March 31, 2024, as many as 49,649 Utilisation Certificates (UCs) — documents that confirm that allocated resources were utilised for the intended purpose — amounting to Rs 70,877.61 crore, had not been submitted to the Accountant General (Accounts and Entitlements) of Bihar. The findings have come as fresh ammunition for the Opposition. Bihar Leader of Opposition Tejashwi Yadav said in a social media post, 'Thanks to Modi-Nitish, a scam of Rs 70,000 crore has taken place in Bihar. The CAG has unearthed the theft. No work was seen, but the entire expenditure was made… Modi-Nitish made history by committing a Rs 70,000 crore scam. Just like the Srijan scam, now efforts to manage this from Delhi to Patna have intensified.' According to the CAG's State Finances Audit Report for 2023-24, the non-submission of UCs violates Rule 271(e) of the Bihar Treasury Code that requires departments to submit the documents within 18 months of the financial year in which the grant is released. The report notes that the Bihar government 'did not comply' with the national accounting standards of IGAS-1, IGAS-2, and IGAS-3. The auditing body suspects that nearly Rs 70,878 crore of budgeted money has no audit clearance, and raised serious risk of fraud. 'In the absence of UCs, there is no assurance that funds disbursed have been used for the intended purpose,' the report said, adding that this level of pendency is 'fraught with the risk of embezzlement, misappropriation, and diversion of funds'. The report's year-wise data shows that Rs 14,452.38 crore worth of these pending UCs relate to grants issued up to 2016-17. In 2017-18, the pending UCs amounted to Rs 3,746.64 crore; to Rs 5,870.67 crore in 2018-19; Rs 17,980.24 crore in 2019-20 and 2020-21; Rs 16,014.34 crore in 2021-22; and Rs 12,813.34 in 2022–23. The pending UCs are heavily concentrated in a few departments, the CAG report revealed, indicating that five departments account for the majority of the unverified expenditure. The largest default is in the Panchayati Raj Department, with UCs worth Rs 28,154.10 crore pending, the report said. This is followed by the Education Department (Rs 12,623.67 crore), Urban Development and Housing Department (Rs 11,065.50 crore), Rural Development Department (Rs 7,800.48 crore), and Agriculture Department (Rs 2,107.63 crore). In addition to department-level grants, the CAG also found that large sums of grants to local bodies remained unverified. As per the CAG, as of March 31, 2024, utilisation certificates were pending for Rs 4,277.22 crore given to Urban Local Bodies (ULBs) and Rs 2,221.83 crore given to Rural Local Bodies under various central and state schemes, including 15th Finance Commission grants. The report also highlighted significant pendency in the submission of Detailed Contingent (DC) bills against Abstract Contingent (AC) bills. AC bills are required to draw advances by departments, and rules mandate that a department submitting an AC bill to withdraw cash must finalise the accounts by submitting a DC bill within six months. However, as on March 31, 2024, the report showed massive non-compliance, as Rs 9,205.76 crore was drawn in advance payments through 22,130 AC bills, but its expense details through DC bills were not submitted. Of this, Rs 5,577.91 crore (60.60%) pertained to advances drawn for the 'creation of Capital Assets', including major schemes under road works, education, health, rural development, etc. The CAG further noted that 1,648 AC bills, totalling Rs 1,041.12 crore, were drawn in March 2024 alone, indicating a 'rush' to exhaust budgets at the end of the financial year. The audit said that this pattern of drawing money late in the year and not reconciling it 'indicates poor public expenditure management'. 'The non-submission of DC bills within the prescribed period breaches financial discipline and enhances the risk of misappropriation of public money,' the report warned. The CAG also pointed to issues highlighting systemic lapses in financial reporting with classification of expenditure, particularly under grants-in-aid. It observed that 59.95% of the total budgeted grants-in-aid of Rs 77,600.47 crore disbursed during 2023-24 were lumped under the category, 'Others', without clearly identifying the institutions or schemes to which the funds were released. The CAG noted that without proper institutional codes, 'the amounts outstanding against all institutions could not be worked out.' This, it said, is a gap that 'affected the transparency of accounts'. The CAG also flagged significant parking of funds under the Deposit of Local Funds. According to the CAG report, funds budgeted as grants to local bodies and municipal bodies were transferred there, but never spent. Over 2019-24, the balance in these accounts swelled to Rs 30,017.64 crore. 'This amount has been shown as Revenue or Capital Expenditure in the respective years but is lying unspent in the deposit head,' the report says. It observes that this practice overstates actual expenditure, and further mentions that the 'reason for transfer of funds for parking in Deposit of Local Fund Head of Account were awaited'. The CAG also noted that internal audit mechanisms in departments were either weak or non-functional, and several previous audit recommendations had not been acted upon. It observed that delays in submission of audit replies and lack of timely action 'defeated the very purpose of the audit'. The CAG said that the combination of the issues of missing UCs, unreconciled advances, off-book deposits and generic accounting entries 'indicate lack of internal controls in the administrative departments'.
Time of India
5 days ago
- Business
- Time of India
Bihar Govt failed to submit utilisation certificates of projects worth over Rs 70,000 crore: CAG
The Comptroller and Auditor General ( CAG ) in its report stated that the Bihar government has failed to submit utilisation certificates (UCs) for projects worth Rs 70,877 crore, raising concerns that funds might be 'misused'. The CAG report on the State Finances Audit for the year 2023-24 was tabled in the state assembly. Explore courses from Top Institutes in Please select course: Select a Course Category Data Science Public Policy Project Management Data Science Management CXO healthcare MBA Product Management Data Analytics others Artificial Intelligence Operations Management Digital Marketing Others Leadership Technology Degree Design Thinking PGDM Cybersecurity Healthcare MCA Finance Skills you'll gain: Duration: 10 Months IIM Kozhikode CERT-IIMK DABS India Starts on undefined Get Details Skills you'll gain: Duration: 30 Weeks IIM Kozhikode SEPO - IIMK-AI for Senior Executives India Starts on undefined Get Details Skills you'll gain: Duration: 10 Months E&ICT Academy, Indian Institute of Technology Guwahati CERT-IITG Prof Cert in DS & BA with GenAI India Starts on undefined Get Details Skills you'll gain: Duration: 11 Months IIT Madras CERT-IITM Advanced Cert Prog in AI and ML India Starts on undefined Get Details Skills you'll gain: Duration: 11 Months E&ICT Academy, Indian Institute of Technology Guwahati CERT-IITG Postgraduate Cert in AI and ML India Starts on undefined Get Details The CAG report states, "Despite the requirement of submitting Utilisation Certificates (UCs) within a stipulated time period, 49,649 outstanding UCs of Rs 70,877.61 crore were not received by the Accountant General (Accounts & Entitlements), Bihar, as on 31 March 2024. In the absence of UCs, there is no assurance that funds disbursed have been used for the intended purpose." "Moreover, high pendency of UCs is fraught with the risk of embezzlement, misappropriation, and diversion of funds," the report said. The CAG further noted, "Despite the requirement of submitting Detailed Contingent (DC) Bills against the advance money withdrawn through Abstract Contingent (AC) Bills, DC Bills against 22,130 AC bills of Rs 9,205.76 crore were pending for submission as on 31 March 2024." Live Events "Non-submission of DC bills within the prescribed period breaches financial discipline and enhances the risk of misappropriation of public money," the report stated. As per the report, "Compliance with prevailing rules and codal provisions is meant to ensure control and accountability in accounting and financial reporting. Non-compliance and deviations impact the quality of accounting and financial reporting adversely." "Non-timely submission of UCs against grants; non-submission of DC bills against AC bills; and non-supply of details of expenditure from SNAs have impacted the quality of accounts adversely," the report further stated.
Hindustan Times
5 days ago
- Business
- Hindustan Times
What Karnataka's move to exempt small plots from Occupancy Certificates means for Bengaluru's real estate market
In a move that could reshape building compliance norms across Karnataka, the state's Urban Development Department (UDD) has proposed exempting residential buildings constructed on plots measuring up to 1,200 square feet from the mandatory requirement of obtaining Occupancy Certificates (OCs). In a move that could reshape building compliance norms across Karnataka, the state's Urban Development Department (UDD) has proposed exempting residential buildings constructed on plots measuring up to 1,200 square feet from the mandatory requirement of obtaining OCs. (Representational Image)(Souptik Datta ) "Buildings up to ground + 2 floors or stilt + 3 floors on plots exceeding 1200 sq ft may be exempted from obtaining occupancy certificate (OC)," the proposal signed by Tushar Giri Nath, additional chief secretary at UDD and accessed by showed. The meeting, chaired by Giri Nath, recommended amendments to key legislations, including the Greater Bengaluru Governance Act, 2024, the Karnataka Municipal Corporations Act, 1976, and the model building regulations under the Rural Development and Panchayat Raj Department. The proposal to waive OCs for buildings under 1,200 sq ft has sparked a mix of relief and concern among builders, homeowners, and urban planners. While the exemption could ease regulatory burdens on thousands of small property owners, especially in Bengaluru's dense and unplanned neighbourhood, experts fear it may open the floodgates to unsafe, unregulated construction and further strain the city's fragile infrastructure. Also Read: Karnataka Cabinet approves regularisation of B-Khata properties in Bengaluru. Here's what it means for property owners What the proposed exemption means Occupancy Certificates are currently required to ensure a completed building adheres to approved plans, municipal by-laws, and safety norms. Without an OC, a property is technically unfit for occupation and is ineligible for utilities such as water and electricity from government agencies. However, many smaller buildings in Bengaluru and other urban areas are constructed informally, often without OCs, Dhananjaya Padmanabhachar, director of the Karnataka Home Buyers Forum, pointed out. If approved, the exemption would essentially legalise properties, at least those on plots under 1,200 sq ft, offering relief to homeowners who struggle with compliance or whose builders failed to secure the necessary approvals. The move could also reduce red tape for first-time homebuyers or those constructing budget homes, experts say. Also Read: Good news for tenants: Rents may stabilise in 2025 as new supply and infra improve connectivity to peripheral locations Bengaluru needs better real estate regulation, say experts 'If you go to any locality in Bengaluru today, you will find that most buildings have some form of violation; they've deviated from the sanctioned plan in one way or another,' said Padmanabhachar, an expert familiar with the matter. 'As per the Supreme Court's directives, it is the responsibility of the city corporation to regulate and take action against such violations. But under the new amendment, individuals will be allowed to construct on plots below 1,200 sq ft without an occupancy certificate, and the corporation will no longer be held accountable for any deviations.' He cautioned that this could open the door to widespread misuse. 'Instead of enforcing stricter zoning regulations and ensuring planned development, this move may actually encourage more illegal constructions,' he said, pointing out that builders may exploit the exemption to erect ground-plus-two floor structures without adhering to any formal approval norms. 'This move will almost certainly lead to a rise in illegal constructions,' said Vittal BR, an advocate at the Karnataka High Court. 'People will get one sanctioned plan on paper and construct something entirely different in reality, knowing that no occupancy certificate will be required to validate it later.' He said that the exemption could trigger a rush of new construction in smaller plots across the city. 'More and more people will start building on small sites because there's no OC needed. It becomes extremely difficult for authorities to monitor or control these developments, especially when deviations from the approved plan go unchecked. In the long run, it might impact the city's planning and safety standards.'
The Hindu
6 days ago
- Business
- The Hindu
CAG flags ₹49,649 crore in pending utilisation certificates in Bihar
The Comptroller and Auditor General (CAG) of India, in its report on the Finances of Bihar for the year 2023-24, has flagged significant financial irregularities, including pending Utilisation Certificates (UCs) amounting to ₹49,649 crore as on March 31, 2024. The report was tabled in the State Assembly on Thursday (July 24, 2025), the fourth day of the ongoing monsoon session. 'The top five defaulting departments included the Panchayati Raj Department, Education Department, Urban Development Department, Rural Development Department, and Agriculture Department,' the report stated. It further observed, 'In the absence of UCs, there is no assurance that funds disbursed have been used for the intended purpose. Moreover, high pendency of UCs is fraught with the risk of embezzlement, misappropriation and diversion of funds.' The audit report also highlighted that Abstract Contingency (AC) Bills worth ₹22,130 crore were pending for submission of Detailed Contingency Bills as of March 31, 2024. It further noted that the State government, through a State Public Sector Enterprise (SPSE), raised ₹53.48 crore as off-budget borrowings that did not flow into the Consolidated Fund of the State but are still required to be repaid and serviced through the budget. 'This indicates lack of internal controls in the administrative departments,' the report said. However, the CAG report also recorded a rise in actual expenditure by the State. 'The Budget Outlay (Actual Expenditure) of the State grew from ₹1,49,641.92 crore in 2019-20 to ₹2,60,718.07 crore in 2023-24,' it stated. 'During financial year 2023-24, GSDP of the State grew at 14.47% over the previous year, and the revenue expenditure increased by 3.55% whereas revenue receipts rose by 11.96%,' the 166-page report said. The committed expenditure, which includes interest payments, salaries, and pensions, accounted for 36.89% of revenue expenditure and 36.35% of revenue receipts during 2023-24. 'The committed expenditure increased at an average rate of 8.86%, from ₹48,477.72 crore in 2019-20 to ₹70,282.32 crore in 2023-24,' it said. For the financial year 2023-24, the State budget stood at ₹3,26,230.12 crore. 'The State spent ₹2,60,718.07 crore (79.92% of the total budget), which was less than its original budget. The State surrendered ₹23,875.55 crore (36.44%) of its total savings of ₹65,512.05 crore,' the report said. The report also flagged unadjusted temporary advances of ₹184.52 crore and unadjusted imprest of ₹25.46 crore as on March 31, 2024. 'These unadjusted amounts from departments such as Building Construction, Public Health Engineering, Irrigation, Road Construction (National Highway), Rural Works, Minor Irrigation, Local Area Engineering Organisation, and Road Construction were required to be adjusted and deposited to the treasury concerned,' it stated. Significantly, the report pointed out that the Public Accounts Committee (PAC) did not hold any sittings to discuss the State Finances Audit Reports (SFARs) during 2023-24. 'Out of 388 paragraphs pertaining to the years from 2008-09 to 2021-22, only three paras were discussed and 385 were pending for discussion till March 2024,' it said. The CAG further noted that the State government failed to discharge its liability of ₹144.29 crore in interest payments towards interest-bearing deposits during the financial year. It also highlighted that off-budget liabilities of ₹53.48 crore were not disclosed in the budget documents or the annual financial statements.
India Today
6 days ago
- Politics
- India Today
Students threaten to quit over eggs in mid-day meals in Karnataka school near temple
Eighty students have threatened to leave a government school in Karnataka's Mandya district after eggs were cooked on the premises as part of the mid-day Education Department's decision to serve eggs at the school has drawn sharp opposition from villagers, who say the practice violates long-standing religious norms. With the school located next to the Veerabhadreshwara Swamy temple, villagers argue that cooking eggs in the vicinity goes against their traditions, which prohibit meat or eggs near the temple the school's 120 students, 80 have now opted out of receiving eggs. Parents have warned school officials that if eggs continue to be cooked on campus, they will withdraw their children. Several have already requested Transfer Certificates (TCs). 'We are requesting TC for our children because eggs are being cooked in the school premises, which goes against our religious beliefs,' said one of the parents. 'We had requested the school to provide bananas instead.'Parents also said they are not opposing the distribution of eggs as a policy, but only the method of cooking them in the school. They claim that for years, a mutual arrangement was followed where students who didn't eat eggs were given bananas or chikki, and the eggs were handed over to school staff to take home.'But suddenly, without involving us, the school resumed cooking eggs on the premises,' noted a Principal of the school has urged parents to reconsider, saying the school is only following government policy.'If even one student requests eggs, we are required to provide them. Please prioritise your children's education over eggs and bananas,' the principal in the middle, the Education Department is now trying to mediate. Mandya District In-charge Minister Cheluvaraya Swamy said, 'We have called for a meeting with the Education Department, school head, and parents. We will discuss the issue and sort it out.'- Ends IN THIS STORY#Karnataka
