BBMP lost Rs 95.63 crore due to non-collection of urban transport cess: CAG

The Comptroller and Auditor General of India (CAG) has found lapses on the part of the BBMP and other urban local bodies (ULBs) in the collection of various cess and fees, incurring a huge revenue loss.

In its report on Collection and Remittance of cess in the ULBs between 2012-13 and 2016-17 tabled in the Legislative Assembly, the CAG said the BBMP lost revenue to the tune of Rs 95.63 crore due to non-collection of urban transport cess between 2013 and 2017.

The Palike has not collected ground rent along with the service tax from five private agencies which were given the contract to construct 288 kiosk-type bus shelters.

The agencies were allowed to use the shelters for the commercial advertisement for five years. This, as a result, led to a loss of Rs 57.58 lakh to the Palike, the national auditor
said.

The BBMP is also found to have failed to enrol film theatres as commercial advertisers. It has incurred a loss of Rs 29.89 lakh due to this.

In another report on Economic and Revenue Sector audit, the national auditor has said the government has incurred a loss to the tune of Rs 440.95 crore due to under-assessment and short levy of various taxes, including value-added tax, state excise, stamps duty and registration fee.

'Investigation needed'

The CAG has recommended to the Department of Mines and Geology (DMG) to conduct an investigation into a large-scale illegal quarrying in the state.

"The quantity of minor minerals removed from legal quarries under the DMG was far less than the total quantity consumed in the state.

Only 21 to 26% was assessed by the DGM. The remaining quantity consumed was transported without Mineral Dispatch Permits...This indicated a high likelihood of illegal quarrying in the state," the auditor stated.