Audit Reports
Madhya Pradesh
Report No.2 of 2019 - Revenue Sector, Government of Madhya Pradesh
Overview
This Report contains 20 paragraphs including one Audit on “Mining Receipts from Major Minerals in Madhya Pradesh” involving Rs 300.81 crore. The Government/Departments have accepted Audit Observations involving Rs 90.15 crore out of which Rs 4.85 crore was recovered.
Audit on “Mining Receipts from Major Minerals in Madhya Pradesh” revealed system deficiencies such as Absence of departmental manual, Inadequate Inspections, absence of Internal Audit, lack of monitoring, failure in monitoring the cases of idle and inoperative mines, non-maintenance of Khatouni, non-finalisation of assessment, non-utilisation of high resolution satellite data to detect illegal mining, non/short realisation of royalty, non-realisation of Dead Rent on mining leases, interest on belated payments was not levied, non/short realisation of National Mineral Exploration Trust (NMET) fund, non/short realisation of Rural Infrastructure and Road Development Tax, non/short realisation of Stamp Duty and Registration Fees due to non-registration of leases for extended period, etc., resulting in loss of revenue of Rs 207.07 crore.
Compliance Audit on Excise Department revealed non-adherence to mandatory checks like verification/ reconciliation of challans with treasury records which led to loss of revenue to the Government of Rs 36.22 crore. Further, Compliance Audit of the Commercial Tax Department revealed incorrect determination of turnover, irregularities in allowance of ITR, Entry Tax not levied/short levied, application of incorrect rate of tax and short levy of tax/grant of irregular concession under Central Sales Tax Act, the financial implication of which amounted to Rs 20.46 crore. Compliance Audit on the Department of Mineral Resources brought out certain irregularities such as Rural Infrastructure and Road Development Tax and penalty not realised, Contract money on trade quarries was not realised/short realised, Dead Rent not realised or short realised, Stamp Duty and Registration Fees not realised due to non-execution of supplementary deed for extended period of mining leases, Royalty on mining lease was not realised/short realised and Interest on belated payments not realised/short realised, resulted in short realisation of revenue of Rs 10.69 crore. Compliance Audit on Department of Registration and Stamps brought out certain irregularities such as, cases referred by Sub-Registrar for determination of market value of properties had not been finalised by the District Registrars, short realisation of Stamp Duty and Registration Fees on mining lease and short realisation of Stamp duty and Registration fees on lease deed, resulted in short realisation of revenue of Rs 6.24 crore. Compliance Audit of the Revenue Department disclosed that under-assessment of Diversion Rent and Premium and non-imposition of penalty and penalty for unauthorised possession of land not recovered, resulted in short realisation of revenue of Rs 2.01 crore. Compliance Audit of Transport Department revealed non-realisation of Motor Vehicle Tax and penalty in respect of goods vehicles, public service vehicles kept as reserve, Earthmovers/harvesters/JCB, maxicabs/taxicabs, stage carriage vehicles, all india permit vehicles, deluxe buses, private service vehicles and incorrect levy of tax on private service vehicles at the rate applicable to educational institution buses were neither paid by the vehicle owners nor demanded by the Taxation Authorities amounting to Rs 12.67 crore and penalty of Rs 5.45 crore.