CAG points to Rs 70 crore lacuna in fund released by DoE

The Government auditor CAG today pointed an irregular release of Rs 70 crore to Delhi State Industrial and Infrastructure Development Corporation (DSIIDC) by the Directoratre of Education (DoE) for infrastructure improvement of government schools.
The DoE released Rs 343.13 crore to DSIIDC although the Cabinet had approved only Rs 272.94 crore for the project, it revealed.
The project was assigned by DoE to DSIIDC without any formal Agreement and detailed scope of work in the absence of which it could not ensure that DSIIDC carried out all the work envisaged under the project.
Effective monitoring mechanism was absent. Out of 183 schools where works were claimed as completed by DSIIDC, DoE found only 78 completed, 50 under progress, and 55 yet to be verified by principals of schools, the report for the year ended March 31, 2014 pointed.

The Directorate assigned (November 2006) the maintenance and improvement of infrastructure in 198 government schools in three districts (East, North East and North West-A) under the project 'Roopantar', to Delhi State Industrial and Infrastructure Development Corporation (DSIIDC).
Estimates of Rs 272.94 crore, submitted by DSIIDC for the project, were approved by the Expenditure Finance Committee (EFC) in February 2008 and by the Cabinet in March 2008.

The Cabinet approved the project with estimated cost of Rs 272.94 crore, out of which 50 per cent payment was to be released at the time of sanction and remaining 50 per cent on receipt of Completion Certificates from heads of schools.

However, records showed that payment of Rs 194 crore was released to DSIIDC up to February 2011, without obtaining Completion Reports from heads of schools, in violation of Cabinet approval.
CAG further observed that DSIIDC submitted a revised estimate of Rs 371.64 crore in June 2011 and requested for release of balance payment of Rs 177.64 crore. The DoE released Rs 64.14 crore, limiting total payment to Rs 258.14 crore (after deducting amount of Rs 14.80 crore for 13 schools where work was not started) in October 2011.
When DSIIDC requested again for release of balance of Rs 98.70 crore, DoE released Rs 85 crore in March 2012 with the approval of the Chief Secretary, GNCTD, though neither revised sanction of the Cabinet nor completion reports from all the heads of schools were available.

Release of Rs 70.19 crore (Rs 343.13 crore - Rs 272.94 crore) to DSIIDC without the approval of the Cabinet, was irregular, the report maintained.
The matter was referred to the Government in January 2015, and their reply was waited, added the report.