Irregularities in property registration, says CAG

The Comptroller and Auditor General of India (CAG) has found large-scale irregularities in registration of immovable properties in the State Stamps and Registration department, causing huge revenue loss to the government.

In its report on revenue sector for the year ended March 31, 2014 tabled in the legislature on Friday, the national auditor has observed irregularities like short or non-levy of duty and fees, misclassification of documents and suppression of facts during its test check of 132 units of the department.

The report stated that the government has incurred a loss of Rs 45.15 cr because of the irregularities. Misclassification of document is widely done to evade tax. The department is yet to reply to the CAG in most of the instances. Similar is the scene in Commercial Taxes, Transport and Excise department.

The CAG has found under assessment and short levy to the tune of Rs 380 cr after conducting test check of records of 439 units of VAT, state excise and motor vehicles taxes.

The auditor has also reported absence of controls in the 3e-filing system to validate deduction claims by contractors in their returns as payments made to sub-contractors resulted in short levy of tax to the tune of Rs 15.66 crore.