the goan I network
PANAJI
Failure on part of the Corporation of City of Panaji (CCP) to collect rent and free municipal property from illegal occupation, has deprived the CCP of Rs 4.28 crore revenue.
"We found that no tangible action was taken to collect rent at prescribed rates and free the municipal property from illegal occupation. This deprived the urban local body (ULB) of revenue of Rs 4.28 crore in respect of 296 shops", stated the CAG report for year ended March 31, 2016.
CAG also slammed CCP stating that the municipal asset, thus, has been a source of profit for private traders, with no revenue accruing for CCP.
"Furthermore, the ULB was also liable to pay Rs 2.77 crore towards electricity and water charges for the new market complex," noted the CAG Report.
The report also pointed out that CAG Report 2011-12 had mentioned about the irregularities in allotment of shops in the new municipal market.
"Pursuant to this, CCP in August 2014 obtained approval of the State Government for executing ‘leave and licence agreements' and collecting PWD-assessed rentals from shopkeepers."
"The High Court of Bombay at Goa, while disposing a Public Interest Writ Petition in July 2015, also directed CCP to recover rent and act against the illegal occupants within six months", the Report noted.
CAG has also remarked that CCP's failure to safeguard its financial interests resulted in a loss of Rs 1.27 crore towards pay parking and SOPO collection fees.
"CCP awarded rights of collecting fee for market occupancy, pay parking and traditional fairs (SOPO) by inviting annual tender. The terms of tender required the successful bidder (contractor) to sign a written agreement, furnish bank guarantee and Earnest Money Deposit (EMD)," stated the report.
The highest price received against the tender was Rs 78.89 lakh and no written contract was executed.
"The higher authorities of CCP failed to take necessary steps to avert the dues becoming irrecoverable. The ULB received Rs 37.45 lakh leaving Rs 41.44 lakh irrecoverable", stated the report.
CAG has also pointed out that land admeasuring 1,594 square metres in Panaji continued to be illegally occupied, which resulted in Rs 2.16 crore revenue loss.
