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Haryana

Report of the Comptroller and Auditor General of India on Composite Audit Report--Civil and PSUs for the year ended March 2022 (Government of Haryana Report No. 2 of 2025)

Date on which Report Tabled:

Wed 27 Aug, 2025

Date of sending the report to Government

Tue 12 Aug, 2025

Government Type

State

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Sector Social Welfare

Overview

The Composite Audit Report of the Comptroller and Auditor General of India (CAG) - Government of Haryana for the period ended March 2022 contains three Performance Audits, one Subject Specific Compliance Audit, seven compliance audit paragraphs of Government Departments and four compliance audit paragraphs of State Public Sector Undertakings.

Performance Audit on Solid Waste Management in Urban Local Bodies

The State Government approved SWM policy and strategy with a delay of 15 months and that too without consulting various stakeholders. None of the 18-test checked ULBs had prepared any short-term or long-term plan. Three test checked ULBs (Gurugram, Sonipat, and Shahabad) had not notified the SWM byelaws containing penal provisions for non-compliance of SWM Rules, 2016. The remaining 15-test checked ULBs notified byelaws with delays. The percentage of collection of user charges ranged between 0.37 and 3.38 per cent against the recurring expenditure incurred on SWM activities in 14 test checked ULBs. Segregation of waste at source and collection of all the ULBs in the State was reported as 70 per cent and 98 per cent respectively during 2021-22. During 2017-22, the total waste generated was stated to be 103.58 lakh tons, against which 64.86 lakh tons waste (63 per cent) was dumped at dumpsites without any processing. During 2021-22, there were 77 dumpsites where ULBs were dumping waste without authorisation from HSPCB. The work of bioremediation in respect of 29 dumpsites was not awarded and 48.77 lakh MT (48 per cent) of legacy waste was lying unprocessed at dumpsite (April 2023). Even after lapse of more than seven years since notification of SWM Rules, 2016, Integrated Solid Waste Management Project could be operationalised only in one cluster (Sonipat-Panipat) so far (March 2023). MC Gurugram and MC Faridabad had to bear an extra financial burden of ₹ 108.93 crore on account of payment of higher tipping/transportation charges due to non-implementation of the project as per schedule. NGT also imposed a penalty of ₹ 100 crore on MC Gurugram for non-bio-remediation of the legacy waste at Bandhwari site.

Performance Audit on Procurement, Storage and Delivery of wheat to Food Corporation of India

Availability of basic facilities such as weighbridges, fire-fighting arrangements, kisan rest houses, canteens, etc. was not adequate in some test checked mandis. Due to non-availability of weighbridge in some mandis, avoidable expenditure of ₹ 2.93 crore was incurred by HAFED on transportation of wheat to weighbridges situated outside of mandi. The FSD had arranged funds for wheat procurement on higher interest rates resulting in extra burden of interest of ₹ 222.24 crore. The State Government paid commission to commission agents (Arthiyas at mandis) at the rate of ₹ 48.12 per quintal for the RMS 2020-21 while the FCI had fixed the commission at ₹ 46 per quintal resulting in loss of ₹ 14.27 crore to the SPAs. Due to non-inclusion of custody and maintenance charges for covered godowns in the PCS, loss of ₹ 90.30 crore occurred to SPAs.

Performance Audit on Welfare of Building and Other Construction Workers

Labour Cess collection during 2017-18 to 2022-23 was ₹ 2,153.11 crore, the Board utilised only ₹ 1,656.78 crore (29.83 per cent) of the total available funds (i.e. ₹ 5,553.71 crore) on implementation of the welfare schemes during 2017-18 to 2022-23. The Board did not apply in time for tax exemption under Section 10 (46) of the Income Tax Act, resultantly there was an Income Tax liability of ₹ 713.25 crore. Audit noticed deficiencies in administrative issues such as non-preparation of annual reports, non-convening of meeting of State Advisory Committee and shortfall in Board meetings. A large number of construction works were not registered due to lack of coordination between the Labour Department and other work executing Departments as well between the authorities responsible for Building Plans. The establishments were not got registered, even after inspection and serving notices to the unregistered establishments. Due to awareness programme not being conducted regularly by the registration authority, the objective of the Board to provide benefits to the construction workers could not be achieved as workers were unaware of these schemes and they remained unregistered. The post-inspection process indicated inadequate scrutiny of compliance reports including absence of proper follow-up on these compliance reports.

Subject Specific Compliance Audit of Enhancement and Variation in Scope of Works

In 14 cases payment of ₹ 255.70 crore had been made against the agreement amount of ₹ 108.91 crore without getting the enhancements approved from the competent authority. Audit observed that enhancements occurred due to improper assessment of site conditions at the time of preparation of detailed estimates, addition of new items/structure after allotment of the works, change in specifications after allotment of work, non-finalisation of scope of work before awarding to contractor and changes in specifications/additions due to demand of public representatives. Five projects were lying incomplete after making payment of ₹ 178.13 crore against the contract price of ₹ 77.89 crore. In 13 cases there was time overrun between 4 to 45 months. Undue benefit of ₹ 73.73 crore was also granted to contractors by allowing higher rates, out of which ₹ 6.64 crore was recovered after pointed out by Audit. Retention money of ₹ 16.80 crore was refunded to two contractors before completion of work in violation of clauses of agreements.

Compliance Audit Paragraphs include instances of Extra payment of premium to Life Insurance Corporation under “Aapki Beti Hamari Beti Scheme”, Unfruitful expenditure on non-functional restaurant, Excess payment of compensation to landowners for their acquired land, Avoidable payment of penal interest due to delay in payment of enhanced compensation, Non-recovery of sewerage charges and application of incorrect tariff rates for water consumption, Avoidable loss due to irregular denial of claim for extra work done, Loss due to non-inclusion of land enhancement cost in price, Avoidable payment of interest, Wasteful expenditure on e-toilets, Loss due to opening of retail liquor outlets without conducting feasibility study were noticed.

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Report of the Comptroller and Auditor General of India on Composite Audit Report--Civil and PSUs for the year ended March 2022 (Government of Haryana Report No. 2 of 2025)
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