Moreover, Manipur Horse Riding and Polo Association (MHRPA), a body entrusted with conservation of Manipuri Pony, procured 39 ponies "without rate justification on account of which avoidable excess expenditure of Rs 16.74 lakh was incurred from public fund", according to a CAG report on Manipur government.
According to the CAG report, Department of Veterinary & Animal Husbandry Services, Manipur "had unreasonably made fund provisions of Rs 16 lakh in the budgets 2010-14 under the detailed head - salaries, office expenses, domestic travel expenses and other charges" for two fodder farms that became non-operational since 2005.
During the exit conference, the department accepted in October 2014 the audit observation and stated that the provision of the fund was made against the two farms due to shortage of fund, it added.
"The reply is not acceptable to us as there was sufficient fund provision of the department in the budget and saving occurred persistently during 2009-14," the CAG report said.
Audit of records further showed that MHRPA sold (in August 2013) 12 ponies to the National Research Centre on Equines (NRCE), Bikaner (Rajasthan), at the rate of Rs 30,000 per pony as against the then prevailing market rate of Rs 25,000 to Rs 30,000 for each pony.
"It was observed that the cost of pony included in the project estimate prepared by MHRPA was higher by an amount of Rs 42,923 than that of the selling price of a pony to NRCE and the maximum prevailing market rate of pony," the CAG report said.