CAG slams Haryana's Urban Local Bodies

Government auditor CAG has slammed the Urban Local Bodies Department of Haryana government for not recovering regularisation charges of Rs 170.40 crore and revenues, including house tax, amounting to Rs 101.82 crore.
In a performance audit tabled at Haryana Assembly here today, the Comptroller and Auditor General of India (CAG) has found that revenue arrears of Rs 170.40 crore was not recovered from house owners of regularised colonies respect of 10 municipalities in the state since December 2004.
The state government had regularised unauthorised colonies falling within the jurisdiction of Municipal Corporation/ Council/Committee in the State December 2004.
Under the provisions contained in Section 203A of the Haryana Municipal Act, 1973 and instructions issued while regularising these unauthorised colonies, regularization charges at the rate Rs 120 per square yard in the case of Municipal Council and at the rate of Rs 80 per sq yard in the case of Municipal Committee were to be recovered from the residents who had already constructed their houses in these colonies.

Test check of records of municipalities showed that recovery of regularisation charges had not been made from the concerned residents, CAG found.
"Demand notices had not been issued to the owners for making payment of these charges even after lapse of a period of more than eight years. Further, no action has been initiated to recover the amount as arrears of land revenue as provided under Section 98 of the Act.

"As a result of this, revenue of Rs 170.40 crore remained unrecovered from house owners of regularised colonies," it said.
CAG in its report said an amount of Rs 101.82 crore was outstanding on account of installation fee (Rs 0.73 crore), renewal fee of communication towers (Rs 1.58 crore), house tax including fire tax (Rs 95.82 crore) and rent of municipal shops (Rs 3.69 crore).

House tax which is a main source of revenue for the municipality was in arrears and no effective steps were taken to recover the same. As per records maintained by 16 selected municipalities, house tax including fire tax amounting to Rs 95.82 crore was in arrears as of March 2013," it said.