Mumbai: The Comptroller and Auditor General
of India has found serious operational faults with the
Maharashtra State Police Housing and Welfare Corporation
Limited in its report for year 2008.
The report found that there were cases of diversion of
funds, poor monitoring, avoidable expenditure due to
inordinate delay in issue of work-order and unjustified
termination of contracts and non-negotiations with
contractors, in the Corporation.
The Corporation, which was formed in 1974 with an
objective to construct houses and administrative buildings and
to formulate and execute welfare schemes for personnel of
police and jail departments, did not utilise funds of Rs
100.27 crore received for 33 works, the CAG report said.
According to the report, it had spent Rs 22.13 crore over
and above the funds of Rs 66.33 crore received against 16
works by diverting the funds of other works.
The company did not invoke the risk and cost clause for
recovery of Rs 23.24 crore being the additional expenditure
incurred on subsequent work orders. There were cases of
over-payment of Rs 40.47 lakh due to incorrect adoption of
price indices and incorrect totals, the report said.
The report found irregularities in the appointment of
architects and project management consultants.
It found out there were instances of over/irregular
payments to architects and consultants to the tune of Rs 1.30
crore and Rs 13 lakh respectively, apart from the lack of
adequate monitoring in execution and completion of works as
well as in handing over of completed works.
The construction of quarters and administrative
building for the police department was not commensurate with
the actual requirements and there was a shortage of 39,113
quarters as on May 2008.
The planning and execution process of the company was
defective due to works not being taken up despite
administrative approvals and receipt of funds, the report
said.
PTI
