The Comptroller and Auditor General of India flagged INR 1.36 crore in suspected fraudulent payments for unexecuted tourism works in Peren district under the Swadesh Darshan scheme.
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DIMAPUR — The Comptroller and Auditor General (CAG) of India has flagged a suspected fraudulent payment of INR 1.36 crore to contractors for fictitious execution of works in Peren district under Tourism department in the period between 2016 and 2020.
In its report tabled in the State Assembly during the budget session in March, the CAG stated that three works—‘Plantation of biological fencing around campus and roadside’, ‘Solid waste management system’ and ‘Campus illumination with solar energy’—with a combined estimated cost of INR 1.21 crore were not executed.
It also found that 35 out of 60 directional signages, valued at INR 15.34 lakh, were not installed.
The irregularities were detected during a joint physical verification (JPV) conducted by the CAG along with departmental officials in Peren district in January 2022.
The works were part of the project ‘Development of Tribal Circuit Peren–Kohima–Wokha’ under the Swadesh Darshan scheme, approved by the Ministry of Tourism, government of India, in November 2015.
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According to the report, Peren district was allotted 43 project components under the scheme at a cost of INR 39.89 crore, involving six contractors.
The audit noted that the works ‘Plantation of biological fencing around campus and roadside’ and ‘Solid waste management system’ were awarded to M/s Hi-Tech Construction & Co, Dimapur, at costs of INR 30.50 lakh and INR 75.06 lakh, respectively, with completion dates of August 1, 2019, and May 15, 2020.
Similarly, the works ‘Directional signage’ and ‘Campus illumination with solar energy’ were awarded to M/s Innovative Construction, Kohima, at costs of INR 26.31 lakh and INR 15.13 lakh, respectively, with completion dates of December 31, 2021, and January 20, 2020.
The audit observed that the sub-divisional officer (SDO) violated Paragraph 341 of the NPWD Code, as entries in the measurement books (MBs) relating to descriptions and quantities of work were not properly scrutinised to ensure the correctness of bills submitted by the contractors.
It further stated that fictitious measurements recorded in the MBs were approved by the executive engineer (EE), indicating lapses in monitoring and verification before passing the bills.
Accordingly, the report concluded that violations of the NPWD Code by officials of the Directorate of Tourism, Kohima, led to certification of fictitious measurements, resulting in the suspected fraudulent payment of INR 1.36 crore.
In its reply in January 2024, the department stated that the four components were incomplete at the time of the audit in January 2022.
It also claimed that funds allocated for ‘Plantation of biological fencing around campus and roadside’ were utilised for ‘Construction of joint footpath and retaining wall’, and that contractors had been directed to complete the remaining works.
However, the CAG rejected the reply, pointing out that the project had already been reported as completed in December 2021.
It further highlighted that the claimed construction work was neither shown during the JPV nor supported by photographic evidence.