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Our Reporter
Dimapur, Feb. 23 (EMN): The director of Social Welfare extended an undue benefit of INR 1.25 crore to suppliers on procurement of Integrated Child Development Services (ICDS) materials by allowing VAT in addition to the tendered rate, though the tendered rate was inclusive of VAT.
This was stated in the Public Accounts Committee (2020-21) report which was presented at the recently concluded Assembly session.
Examining records of July 2014 revealed that the department procured ICDS materials valued at INR 10.66 crore from four suppliers during the year 2011-12 and 2012-13. On detailed examination of the supply orders and the suppliers’ bills audit, it was observed that VAT was allowed over and above the approved rate inclusive of VAT.
When asked in an audit query about the added VAT and if the excess payment was recovered, the department replied that it was due to oversight and that the department has written to the concerned forms for recovery, stated the report.
During the oral evidence, the department stated that it has written to all the contractors and suppliers to recover the excess payment but till date no payment has been made and therefore they failed to give a concrete reply to the committee.
The committee in its recommendation stated that the explanation advanced by the department was not acceptable. It noticed that the department had issued the supply order at the approved rate inclusive of taxes. During the course of evidence, the departmental representative assured to submit the recovery report within two months time but failed to do so, the report stated.
Owing to this, the committee has recommended the department to make all out efforts for regularisation and recovery of excess expenditure of INR 1.25 crore. It further directed the department to take action, give a final notice and file an FIR.
The PAC stated that the remaining payment should be intimated to the committee within two months from the date of presentation of the report to the House.