CAG raps MSEB over deficient recovery

The Comptroller and Auditor General of India (CAG) has pulled up the Maharashtra State Electricity Board (MSEB) for laxity over its failure to use its powers to recover energy charges totalling Rs 1101.84 crore from the top 100 industrial and high tension consumers as on March 31, 2004.

"The conditions and miscellaneous charges for supply of electrical energy prescribes payment of the bill within 15 days from the date of the bill...If the consumer fails to pay any bill presented to him.... the board is at a liberty to cut off the supply after giving not less than seven days clear notice. Instead the MSEB allowed the facility of installments/deferments of dues from time to time. Thus due to the laxity shown by the board the consumers failed to clear dues," the CAG report states.

Citing instances, the report states the Unifero International that owes Rs 170.07 crore as on 31 March 2004 to the MSEB: "The consumer was in arrears of Rs 6.61 crore as of September 2001. The MSEB allowed various packages to the consumer from time to time. This resulted in increase in arrears to Rs 170.07 crore as of March 2004."

Similarly, in the case of Ispat Industries Ltd (Pen circle), the report states that an installment facility was offered to the consumer for clearing arrears several times. The arrears, however, increased from Rs 5.49 crore in April 1998 to Rs 155.94 crore in July 2000 and to Rs 132.27 crore as of March 2004.

"The MSEB granted installment facility six times between March 2001 and October 2002 to Lloyd Steel Industries (Wardha circle) that owes Rs 33.44 crore as of March 2004. Similarly, in the case of Vipras Castings Ltd (Pen circle) the MSEB granted installment facility several times. Arrears of the consumer increased from Rs 8.33 crore in April 2002 to Rs 16.78 crore in march 2004. The supply of the consumer has been permanently disconnected on 25 may 2004," the report states.

The CAG report also points out that the MSEB has exhibited slackness in filing court cases and recovery of dues from defaulters.

"As of 31 March 2004 the board had not filed court cases against 384 high tension consumers for the recovery of arrears of Rs 116.08 crore. In contrast, the courts had decided 9, 423 cases of low tension consumers amounting to Rs 6.7 crore and 228 high tension consumers amounting to Rs 56.11 crore in favour of the board."

Further, the CAG found in a test check of 115 cases in 12 operation and maintenance circles that as against the decreed amount of Rs 22.44 crore, the board recovered a mere Rs 17.32 lakh.

Similarly, in the Kalyan circle decrees were passed in four cases between 2001 and 2003 for Rs 2.73 crore in favour of the board that after a lapse of two years has taken no action for the execution of the decrees.