Karnataka govt departments caused loss of around Rs 2,500 cr: CAG report

The losses were incurred in short-levy or undervalue of sales tax, VAT, stamp and registration fee, state excise, taxes on motor vehicles and mines and geology departments

The state government has suffered losses amounting close to Rs 2,500 crore in 2019-20, owing to short-levy of fees, under-assessment of property value and other such irregularities across various departments.

A Comptroller & Auditor General (CAG) report tabled in the Legislative Assembly on Wednesday stated that losses amounting to Rs 2,491 crore were incurred in short-levy or undervalue of sales tax, VAT, stamp and registration fee, state excise, taxes on motor vehicles and mines and geology departments.

The state government has suffered a loss to the tune of Rs 216 crore owing to short levy of stamp duty and registration fee by officials in the Stamps and Registration department, the audit found.

Illustrating two cases in the sub-registrar offices in Bengaluru Urban district, the report explains how officials levied lesser stamp duty than required on Power of Attorney deeds (for sale of property) leading to a loss of Rs 20.38 crore. While power of attorney for sale of property attracts 5% stamp duty on market value of the property, the sub-registrars had wrongly levied a nominal stamp duty meant for another category of Attorney deeds which exclude rights for sale.

Such examples can be found across departments for various services, according to the report. In addition, about 1,652 inspection report involving money value of Rs 2,782 Crore were pending with various departments for settlement by June 2020, it adds.

Also, owing to non-updation of revised rates and also non-renewal of registration of shops and commercial establishments by the Department of Labour, there have been losses to the tune of Rs 39.59 Crore. The chief engineer’s office has also caused losses worth Rs 14.63 crore by not levying penalty for delays on part of the contractors, among other issues.

Further, the CAG report also highlights irregularities in Bangalore University. As a result of financial misappropriation, there has been a revenue loss of Rs 87.87 lakh. Irregularities were found in disbursal of stipends to research scholars. The report also explains how officials have not remitted on time the DDs to banks (collected from students for registration, admission, examination fee), causing losses.

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