CAG recognized irregularities in implementation of transport subsidy scheme.

transport subsidy schemeGuwahati: The Comptroller and Auditor General of India (CAG) has recognized serious irregularities in the implementation of the transport subsidy scheme and pointed out that in states like Assam, Jammu and Kashmir, Himachal Pradesh and Nagaland, there is no system of intermittent inspection of the units or checking of raw materials and finished products for authenticity.

The CAG, in its report number 3 of 2010-11, said that sample surveys conducted during the audit found that transport subsidy was paid without proper verification of the documents. Out of the 120 test checked cases, the state level committees passed claims worth Rs 61.78 crore without availability of sales tax, vat assessments in 67 cases, of which, 27 are in Assam, 12 in Arunachal Pradesh, 2 in Himachal Pradesh, 6 in Jammu and Kashmir, 13 in Meghalaya and 9 are in Nagaland.

The report said that 79 test checked cases, claims amounting to Rs 147.86 were passed without supporting documents like bank certificates, no objection certificates from the state sales tax departments etc in 77 cases, of which as many as 45 cases were from Assam, 10 from Arunachal Pradesh, 15 in Meghalaya and seven in Nagaland.

The CAG pointed out that as per the rules, payments in respect of non-manufacturing units, illegal wood based activities, prohibited raw materials etc are not permissible.

However, during test check of the records, the CAG found that in Arunachal Pradesh, two saw mills engaged in illegal wood based activities were paid subsidy amounting to Rs 1.50 crore between 2004 and 2008 as per the endorsement of the state level committee.

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