Panaji
Non-renewal of construction licences of 1029 properties by Urban Local Bodies (ULBs) has resulted in failure to collect Rs 13 crores in revenue, revealed the report of the Comptroller and Auditor General (CAG) for year ending March 31, 2016.
CAG has revealed that 1029 out of 2026 licences issued during five years from 2011-16 were not renewed annually. These licences, required to be renewed annually, had to be revalidated after third year from the date issued, on payment of prescribed fee.
"Further, occupancy certificates were not issued for such properties during the period. The licences were thus due for renewal or revalidation. The renewal fee forgone in such cases was Rs 13 crore", stated the Report.
Nonetheless, the physical inspection of 21 properties by audit and municipal authorities confirmed that ULBs did not survey properties to collect the revalidation or renewal fee which was due.
However, in its recommendation, CAG has stated, "The licences granted should be renewed annually and applicable renewal fee should be collected from licencees", remarked CAG.
1519 shops leased
out without
agreement renewal
Seven Urban Local Bodies (ULBs) in the State leased out 1519 shops without renewing agreements resulting into short realisation of revenue of Rs 9.89 crore, stated the CAG Report. CAG pointed out that the rent collected from shops in municipal markets was between Rs 15 and Rs 70 per square metre per month. While the market occupancy fee collected from vendors and hawkers was between Rs 90 and Rs 600 per square meter per month.
"Thus, the rent received from permanent shopkeepers was less than those
of vendors or hawkers though the latter occupied less market spaces and displayed wares in open area", pointed the Report.
However, the average annual sales turnover of shopkeepers in municipal markets varied from Rs 1.77 lakh to Rs 2.19 crore in Mormugao MC, from Rs 4.55 lakh to Rs 1.83 crore in Mapusa MC and Rs 57.74 lakh in Bicholim MC.
"Out of 90 shops test checked in four ULBs - CCP, Mormugao MC, Mapusa MC and Bicholim MC - 36 shops were found to be paying VAT but they did not pay the rent at prescribed rates to ULBs, indicating that the shopkeepers took advantage of the laxity of ULBs to collect rent", said the Report
No performance grants for UBLs
Failure of Urban Local Bodies (ULBs) to fulfil prescribed conditions by the Thirteenth and Fourteenth Finance Commission deprived them of performance grants of Rs 28.26 crore for 2011-15.
The Thirteenth Finance Commission (2011-15) had divided grants to ULBs into two components.
"The conditions for accessing performance grants were not met by the State Government and also the ULBs. This resulted in forfeiture of performance grants of Rs 28.26 crore for 2011-15", pointed the Report.
"We observed that ULBs did not take steps to get their annual accounts audited and measure and publish service-level benchmarks. Thus they were not in a position to access the performance grants of Rs 8.62 crore for 2016-17 and Rs 35.35 crore for 2017-20", remarked CAG.
Non-renewal of construction licences of 1029 properties by Urban Local Bodies (ULBs) has resulted in failure to collect Rs 13 crores in revenue, revealed the report of the Comptroller and Auditor General (CAG) for year ending March 31, 2016.
CAG has revealed that 1029 out of 2026 licences issued during five years from 2011-16 were not renewed annually. These licences, required to be renewed annually, had to be revalidated after third year from the date issued, on payment of prescribed fee.
"Further, occupancy certificates were not issued for such properties during the period. The licences were thus due for renewal or revalidation. The renewal fee forgone in such cases was Rs 13 crore", stated the Report.
Nonetheless, the physical inspection of 21 properties by audit and municipal authorities confirmed that ULBs did not survey properties to collect the revalidation or renewal fee which was due.
However, in its recommendation, CAG has stated, "The licences granted should be renewed annually and applicable renewal fee should be collected from licencees", remarked CAG.
1519 shops leased
out without
agreement renewal
Seven Urban Local Bodies (ULBs) in the State leased out 1519 shops without renewing agreements resulting into short realisation of revenue of Rs 9.89 crore, stated the CAG Report. CAG pointed out that the rent collected from shops in municipal markets was between Rs 15 and Rs 70 per square metre per month. While the market occupancy fee collected from vendors and hawkers was between Rs 90 and Rs 600 per square meter per month.
"Thus, the rent received from permanent shopkeepers was less than those
of vendors or hawkers though the latter occupied less market spaces and displayed wares in open area", pointed the Report.
However, the average annual sales turnover of shopkeepers in municipal markets varied from Rs 1.77 lakh to Rs 2.19 crore in Mormugao MC, from Rs 4.55 lakh to Rs 1.83 crore in Mapusa MC and Rs 57.74 lakh in Bicholim MC.
"Out of 90 shops test checked in four ULBs - CCP, Mormugao MC, Mapusa MC and Bicholim MC - 36 shops were found to be paying VAT but they did not pay the rent at prescribed rates to ULBs, indicating that the shopkeepers took advantage of the laxity of ULBs to collect rent", said the Report
No performance grants for UBLs
Failure of Urban Local Bodies (ULBs) to fulfil prescribed conditions by the Thirteenth and Fourteenth Finance Commission deprived them of performance grants of Rs 28.26 crore for 2011-15.
The Thirteenth Finance Commission (2011-15) had divided grants to ULBs into two components.
"The conditions for accessing performance grants were not met by the State Government and also the ULBs. This resulted in forfeiture of performance grants of Rs 28.26 crore for 2011-15", pointed the Report.
"We observed that ULBs did not take steps to get their annual accounts audited and measure and publish service-level benchmarks. Thus they were not in a position to access the performance grants of Rs 8.62 crore for 2016-17 and Rs 35.35 crore for 2017-20", remarked CAG.
