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MUNICIPAL CORPORATION OF DELHI

INTERNAL AUDIT DEPARTMENT

Mpl. Primary School Bldg.,

Ram Nagar, Arakashan Rd.
Pahar Ganj, N. Delhi-5

No.F.______/IAD/SPZ/2012/______ Dated_____________

Subject: Physical verification & test audit on account of General Branch,

including Licensing Department, S.P.Zone, for the period 04.03.2011
20.03.2012.

Please find enclosed herewith the Audit Inspection Report on account of General Branch,
S.P.Zone, for the period 04.03.2011 to 20.03.12. Para-wise replies/comments be sent to the office
of the undersigned within a period of the two weeks of the receipt of this letter.

Internal Audit Officer

ZAP/S.P.Zone

Asst. Commissioner,
S.P.Zone

Copy to :
1. D.C., S.P.Zone, for kind information pl.
2. D.C.A.(I.A.D.), for kind information pl.
3. Office copy

Internal Audit Officer

ZAP/S.P.Zone

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MUNICIPAL CORPORATION OF DELHI

INTERNAL AUDIT DEPARTMENT

Mpl. Primary School Bldg.,

Ram Nagar, Arakashan Rd.
Pahar Ganj, N. Delhi-5

No.F.______/IAD/SPZ/2011/ Dated_____________

Subject: Physical verification & test audit on account of General Branch,

including Licensing Department, S.P.Zone, for the period 04.03.2011
20.03.2012.

INTRODUCTION:

As per approved programme the physical verification and test audit on account of General
Branch including License Department, S.P.Zone, for the period 04.03.2011 to 20.03.2012 was
conducted by the Zonal Audit Party, S.P.Zone, during the period 05.03.12 to 20.03.2012. The Audit
Party consisting of the following staff working under the control and supervision of Sh.
S.K.Sachdeva, Internal Audit Officer, S.P.Zone conducted the audit on the said office.

1 Sh. Nand Kishore Singh Accountant

2. Sh. Subhash Mishra Acctt.Asstt.
3. Sh. Praveen Kumar LDC

Sh.Darshan Kumar held the post of Asstt.Comm. and Sh. D.N.Gautam held the post of Admn.
Officer/S.P.Zone at the time of Audit.

PART-I (Previous Audit)

The following Audit Inspections Reports issued from time to time are still pending for final
settlement for want of replies from the Department:

1. F/21/IAD/SPZ/69/85 Dated 22/09/1969

2. F/55/IAD/SPZ/73/737 Dated 23/04/1976
3. F/101/IAD/SPZ/76/320 Dated 11/10/1976
4. F/407/IAD/SPZ/1027 Dated 21/02/1979
5. F/641/IAD/SPZ/312/305 Dated 06/12/1986
6. F/493/IAD/SPZ/523 Dated 02/01/1989
7. F/519/IAD/SPZ/538 Dated 01/12/1991
8. F/608/IAD/SPZ/897 Dated 24/12/1992
9. F/185/IAD/SPZ/180 Dated 02/06/1993
10. F/790/IAD/SPZ/75 Dated 18/11/1996
11. F/837/IAD/SPZ/81 Dated 05/05/1997
12. F/1043/IAD/SPZ/281 Dated 10/06/2000
13. F/1147/IAD/SPZ/03/428 Dated 07/04/2003
14. F/1199/IAD/SPZ/04/28 Dated 02/06/2004
15. F/1253/IAD/SPZ/05/170 Dated 07/07/2005
16. F/1301/IAD/SPZ/06/280 Dated 31/03/2006
17. F.1332/IAD/SPZ/07/354 Dated 09/02/2007
18. F.1375/IAD/SPZ/08/108 Dated 10/04/2008
19. F.1388/IAD/SPZ/09/346 Dated 14.05.2009

It is requested that the earnest efforts may be made at your personal level to expedite replies
to these long outstanding reports. It is intimated that the non-furnishing of the replies in time
defeats the very purpose of the audit and in passage of time, it becomes quite difficult to pin point
the responsibility in respect of such paras in which serious irregularities may have been pointed
out.

Your attention is also invited to the Commissioner’s instructions contained in the circular No.
F.10(87)/88/CA/F&G/635, dated 22/04/1988 vide which it has been laid down that the replies of
Audit Instruction/Report must be furnished within a period of two weeks.

It appears that the Department has failed to take notice of even the instructions issued by
the Commissioner.

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PART –II :CURRENT AUDIT

The following records were requisitioned for audit/scrutiny on test check basis vide this
office memo no, IAD/ZAP/SPZ/07/01, dated 16/02/2009.
1. Old age pension records including sanction and other files of application,
2. Disbursement Register
3. Refund Register,
4. Personal Files & Service Books with E.C.R’s,
5. G-8 Books/challans
6. D & C Registers
7. Challan Book (chit challan) Register
8. Auction File
9. L-I & L-II Register with Records
10. Offence Register
11. Income Register
12. Log Book of Vehicles
13. Petrol challan/record
14. Disposal of unclaimed articles
15. Imprest Register
16. Raid Register with list
17. Telephone Bill Register
18. Property Register
19. O.T.A. Records
20. Stock Book (uniform & Stationery)
21. Budget Watch Register
22. Temporary Advance Register
23. Cash Book
24. Cheque Book Issue Register
25. Bank Reconciliation Statement
26. Postage Register
27. List of G-8 Books & stock book of G-8 books issued.
28. Any other auditable record.

PARA NO.-1 NON PRODUCTION OF RECORDS

Out of the above requisitioned records, the record at Sl. No1 (p) with no other files,
4,(P), 5,6(Partly i.e. only one ward), 8, 9(P only L-II register), 16, 21, 23, & 27 only were
produced for audit scrutiny. The Audit Party issued Memo’s bearing Nos. IAD/ZAP/SPZ/07/06 to 09
of different dates regarding irregularities found during the audit as well as for non production of
records but neither any reply regarding irregularities found during the audit nor the remaining
records were produced. At last a list of records produced before the audit was issued to the
AO/General Branch and audit was wound up because audit had no option but to wind up the same
as audit is a time bound programme. It is presumed that the officials did not keep these records or
the production of the same has been avoided, the reason whatsoever may be explained to Audit
immediately.

PARA NO.-2 NO PHYSICAL VERIFICATION OF STORE OF RAID ITEMS

During the last audit, the physical verification of the store of raided items could not be done
because the items lying in the store was in hotchpotch manner and clubbed with the items of raid
pertaining to the Health Department, as reported by the in-charge, of the Stores. Further marking
of each lot was also not shown in the store. In the present circumstances, it was very difficult, for
Audit to get physical verification of the store.

This year also there was no change in the store and still the raided items of Health Deptt. as
well as General Branch are in a clubbed manner and hence physical verification could not be done.
It seems that authority competent had taken no care of the report and did not bother to maintain
the store in a separate place so that audit could be done in a proper way of both the departments.

Hence, the authority competent is requested to pass necessary instructions for necessary
changes and improvements with segregation of items of Health Deptt. or the Store of Health Deptt.
be shifted to somewhere else for proper storage of raided items of both the departments, to
maintain the store in a proper manner, so that verification of the same can be done by the Audit as
well as any authority of the zone. It is also requested that in the present scenario the physical
verification of the store may be carried out by the authority competent of General Branch and
submit a certificate in this regard to Audit.

It is pertinent to mention here that audit has been drawing the attention of authorities time
and again to this issue (as in the reports for the last repeated years) but till date no fruitful action
has been taken resulting causing loss to MCD.

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PARA No.:3: LOSS OF RS. 5100/-ON ACCOUNT OF LESS CHARGEs ON RELEASING OF

RAID ITEM AS PER RAID REGISTER:

During course of test check of records maintained regarding release of raid items, it was found
that there were many irregularities in releasing the items causing loss to MCD. It was really surprising
that no checking of the registers was found on the part of senior officers and the concerned L.I. was
the incharge to calculate the fine and to release the same after obtaining orders of the competent
authority.

A circular bearing no.1454/CL&EC/99 dated 11.02.99 had been produced before audit
wherein the rates of composition fee, removal charges and storage charges @ of old rates and
revised rates had been mentioned. In this circular removal charges, removal charges and storage
charges have been fixed on the basis of weight but in both in the raid registers( produced
w.e.f.09.08.10 to 31.07.11 & 03.08.11 onwards ,nowhere weight of the items has been mentioned.
Hence audit was not in a position to check the accurate charges to be fined. Due to lapse on the
part of the department, MCD has to suffer incalculable loss.

A test check of the register shows many irregularities as well as it was observed that the
items were released but fine was charged were less causing loss to MCD:

1. During the course of audit of releasing of raided items as per Raid Register, audit has found
that on 02.02.12, at the serial no.03/907 the entry of “ three band katte of plastic” has
been mentioned in the register which was released by charging Rs.600 vide G-8
no.1182766 dated 03-02-12 which was less, actual amount should be Rs.950/- being seized
from shop thus loss of Rs.350/-.
2. Goods seized on 23.12.11 from Ram Bagh Road , W.No.90, listed at sr.no.1/836(three
gutters old small pieces) & 2/837(two angle, four iron windows, one jaal old, one rack, one
ladder of iron) in raid register. After charging Rs.1100/- the said items wre released vide G-
8 No.112755 dated 26.12.11. The charges have been taken on the basis of patri while it
was seized from shop. The actual recovery comes to Rs.3600/- thus Rs.2500/- charged
less.
3. Two wooden table, three round table, four small frame and three pipes were seized on
23.12.11 and entered at sr.no.5/835 from Paharganj and released after charging fine of
Rs.700/- vide G-8 No.1182754(no date mentioned). The charges have been levied on the
basis of patri while taking charge of shop, it comes to Rs.1150/-. Thus Rs.450/- has been
charged less.
4. On 24.02.12, items at sr.no.13/1020 were released on 29.02.12 by charging fine of
Rs.1050/- vide G-8 No.1182789 dated 29.02.12 (CF-300,RC-150,SC-600). RC-Rs.150/- is
charged upto 40 kg. weight and storage charge of Rs.600/- is taken for one quintal weight
so RC-Rs.150 is recoverable as weight is one quintal.
5. Item at sr.no.23/1030 dated 24.02.12 released with fine of Rs.1150/- G-8 No.1182788
dated 27.02.12 by charging CF-600/- for shopkeeper, RC-150/- for 40 kg. SC-400 for one
quintal @ 100x4, hence Recovery of Rs.150/- as RC for one quintal weight.
6. On 24.02.12 , seizure articles of one shop has been entered at two places i.e. at
sr.nos.10/1017 & 14/1021 and at the time of releasing it has been treated as one item and
released by charging fine of Rs.1300/-, needs clarification.
7. On 15.02.12, one broken wooden counter was seized and entered at sr.no.10/952 from
shop and released on 16.02.12 by charing fine of Rs.850/- while charge should be of
Rs.950/-, hence recovery of Rs.100/-;
8. On 15.02.12 one band katta small was seized from shop and entered at sr.no.14/956,
released on 16.02.12 by charging fine as CF-600/-, RC-150/- SC-100/-, stacking charge has
been charged Rs.100/- less.
9. It was informed that there was no facility to weigh the items lifted from the sites
and it depends upon the sweet will of the L.I. to decide as to what is the weight of
the items. It will not be out of way to mention here that there is a clear cut
guideline regarding charges pertaining to different items of different weight.

An Audit Memo bearing No.IAD/ZAP/SPZ/2012/08 dated 19.03.12 was

issued pointing out various irregularities in the raid register but no reply was
furnished to audit till the date of audit.

PARA NO. 4:AUDIT OBSERVATIONS REGARDING L-II REGISTER

L-II register has been produced for the year 97-98 onwards starting from sr. no.857/658 to
1846/1617.No previous part-I of the L-II register was produced before the audit. Except seven
licenses issued on 26.02.2010, no other licenses have been shown issued during the current audit
period, but two license files were produced before audit stating that the entries of same could not
be done in the L-II Register. Nothing is mentioned regarding renewal of these seven licences.
After entry of sr.no.1690/1478, wherein the date of issue of license has been shown 28.06.2004,
(and in most of the cases) no entry of renewal of licenses have been made after 2004 or 2008 in
some cases. Only G-8 issued by the CSB deptt. is mentioned but without details. It seems that
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either the licenses are not being renewed or entry of reneral has not been made/updated till date.
Where outstanding dues are there, the enforcement action does not seem to be taken as the L-II
register has been shown without action and are left blank. Due to above irregularities heavy
amount of arrear seems to have occurred and loss to MCD but the action on the part of
department to materialized the same is not known.

An Audit Memo bearing no.IAD/ZAP/SPZ/2012/09 dated 19.03.2012 was issued

to the Asstt.Commissioner/SPZ in this regard but no reply was furnished to the audit.

IRREGULARITIES FOUND IN THE LICENSE FILES:

A. M/S PREM METAL CO., 10578/34, SHANKAR GALI NO.2, NABI KARIM, NEW DELHI.
LICENSE HAS BEEN ISSUED VIDE NO.3309/AO/SPZ/2012 DATED 27.12.2011.
(a) The photocopy of BSES is dated 31.12.10 and not current, not attested. This is in the name
of Sh.Panna Lal, 10578/34, Gali No.2, Shyamjimal Lane, Paharganj, Delhi, how this related
to above address of license, needs clarification.
(b) NOC from the owner Sh. Ram Kishan S/o Late Sh. Lila Ram R/o 10578/34. Gali No.2, Motia
Khan is a photocopy, not attested, no date is mentioned.
(c) The copy of Central sales Tax shows the name and address as M/s Prem Metal Co.,
10578/34, B-Allauddin Street No.2, Motia Khan, New Delhi-55 and not at the above said
address;
(d) The application of Sh. Pannalal Sodhi shows that he had applied for license on 17.04.08. An
affidavit dated 04.04.2008 is also attached with application . The amount of Rs.250/- was
deposited vide G-8 No.1870845 dated 17.04.08 for Rs.250/-. In response to this application
dated 13.05.08, the department had issued a letter to the Co. only on 18.08.11 i.e. after
three years . Why this application was pending for 2-3 years; the reasons thereof may be
supplied to audit.
(e) The telephone bill in the name of Sh. Panna Lal Sodhi also shows the address as 10578/34,
Gr. Floor, Gali No.02, Motia Khan, Paharganj,Delhi.
(f) The bldg. deptt. had mentioned only for conversion charge and not regarding status of
unauthorized construction/booking etc.etc. in the said property.

B. M/s J.S.STEEL ENTERPRISES ,GF-10578/28, SHANKAR GALI NO.2, NABI KARIM, NEW
DELHI. LICENSE HAS BEEN ISSUED VIDE NO.D-3448/AO/SPZ/2012DATED 17.01.2012:

(a) The address of site plan is Shop No.10578/28, shyamjimal lane Shankar Gali no.2, Motia
Khan, New Delhi and not at the above address;
(b) No report regarding unauthorized construction or otherwise in the file;
(c) The address at conversion charges form is also Motia Khan and not Nabi Karim;
(d) The applicant had filed the application on 13.05.08 but the department had issued a letter
to the party only on 18.01.2011 i.e. after 2-3 years of filing the application, needs
clarification;
(e) In the House tax receipt dated 20.06.2010, the name of owner has been shown as “Bir
Singh Jain”;
(f) In the Sales Tax Receipt , the address is mentioned as Motia Khan and not Nabi Karim;
(g) The copy of BSES is in the name of Sh. Jitender Jain, 10578/28, Gali No.2,Shankar Gali,
PAharganj, New Delhi.
(h) In the copy of partition deed, the address of the property is 10578/28, Bagichi Allauddin,
Nabi Karim.
(i) No Indemnity Bond is available in the file.

PARA NO.-7: LOSS TO MCD WHICH IS BEYOND CALCULATION DUE TO NON RECOVERY
ON RENEWAL OF LICENSES AND NON-UPDATION OF L-II REGISTERS:

On test check basis, audit has observed that L-II Register, so produced and prepared is of
local/commercial Part-II(only) which inter-alia reflects that the entries of renewal of licenses are
not being made in the L-II Registers. It is also seen that most of the entries are shown blank.
Some other irregularities which audit has observed are: -
1. The register so produced is of 1997-98 onwards but in some cases the entry of renewal
shown is of 2001-02, 2002-03. In some cases, it is for 2003-04 and rest of the pages
shown with no action and left blank.
2. The registers so prepared are on plain register and no prescribed printed L-II Registers
are being used.
3. The paging certificate not shown in the beginning and no paging is done.
4. No mandatory columns prepared and filled up even the columns of opening balance and
closing balance are not shown.
Besides above, the said records are not being updated on the ground that G-8
receipts/licenses are being issued/renewed by CSB Centers w.e.f. 2002-2003 onwards hence no L-
2 Registers are being updated. Audit is in the view that the counterfoil/copies in yellow color are
being issued by the CSB Centers and sent to the respective departments for posting in the
respective ledger/registers. The ground shown by the department to audit needs clarification as to
why the L-2 registers are not being updated. What actions are being taken by the Enforcement
Staff on the trades which are not getting their licenses renewed from time to time due to which
MCD is suffering revenue loss of heavy amount particularly when MCD is facing acute shortage of

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funds? Also the working of Enforcement Staff in the field does not seem to be justified, which
needs further clarification.

PARA NO.5: OBSERVATIONS REGARDING G-8 RECEIPT BOOKS.

During the course of audit, the department has produced 34 G-8 Books with challans:

39801,41401,1182501,1183001,118401,991601,40801,1183201,38401,997901,1181101,
1181701,991701,40901,91301,90001,40701,39701,39201,90401,39401,41301,40501,1185301,1
18101, 38901,39001,37501,91701,1182701,1183701,1183501.
Many other irregularities were also found which needs to be avoided in future. Some of
them are as under:-

(a) At some receipts by Cashier, no date of receipt is mentioned;

(b) In G-8 No.38954 dated 08-05-11, the amount shown in red copy is Rs.100/- but in the
yellow copy, no amount is mentioned and filled with ink. Similarly in G-8 No.38962 dated
08-05-2011, the amount shown in red copy is Rs.100, but the yellow copy is left blank,
needs clarification.
(c) In G-8 No.40937 dated 10.08.11, the amount of Rs,221209/- has been written as “two
thousand twenty one thousand two hundred nine only” which is totally wrong.
(d) Likewise In the G-8 No.40927 dated 10.08.2011, the amount of Rs.77837/- has been
written in word as “seventy seven thousand seven hundred eight hundred thrity seven only”
which is wrong.
(e) No amount gas been written in G-8 No.40942 dt 10.08.11 for amount of Rs.29735/-.
(f) The G-8 No.91398 to 400 is filled under head 74-142 amounting to Rs.100/- but without date
and the said amount has not been shown deposited in treasury. All the three copies are placed in
the G-8 receipt book, needs clarification.
PARA NO.-6: IMPROPER MAINTENANCE OF RAID ARTICLE REGISTER

During the course of test audit of the Raid Article Register(produced w.e.f.09.08.10 to
31.07.11 & 03.08.11 onwards), the following irregularities were noticed:
1. On scrutiny of this register it was found that after seizing the items from site, it is entered in
the raid register but has not been handed over to the Chowkidar of store and store incharge
as there is no signature of LI/RC concerned for handing over the seized articles to store
Chowkidar. It means none is the custodian of the seized articles.In the case of any theft or
fire, who will be responsible, needs clarification.
2. At most of the entries, at the time of releasing the items, no address of squatting site is
mentioned;
3. No copy of any G-8 receipt is attached with releasing order form so that actual amount
recovered may be ascertained;
4. The Raid Register has not been prepared in column-wise. No record is being kept of the
total amount collected-date-wise/raid wise from the release of impounded items/goods, for
the ready reference of the collections in the M.C.D. treasury.

5. No signatures of dealing assistant and competent authority done in the register.

6. No details of items i.e. weight, length, size etc.etc. are mentioned in the raid register due to
which it is very difficult to calculate the correct amount of charges of the raided articles. It
may be intentional. Loss of revenue cannot be denied due to non-mention of actual
weight,size of the article.
7. The amount charged have not been bifurcated in the register as to how the said charges
have been charged by the Store Keeper.
8. Income verification certificate from zonal treasury accounts needs to be obtained and
produced to audit otherwise if there is any misappropriation/embezzlement found, the
department itself will be held responsible.

PARA NO.-7: IRREGULARITES IN THE BUDGET WATCH REGISTER 2011-12:

During the test audit of the Budget Watch Register for the year 2011-12 , the following
irregularities were noticed:

1. No details of the bill is shown for each entry date-wise of the budget register.

2. Total Budget allocation received from the Budget Department, Town Hall not affixed on
the first page of the register (for ready reference).
3. Paging certificate not given.
4. The total expenditure at page-8 in the H/A 08/1004 is incorrect as total expenditure of
Rs.824013/- has been shown only Rs.376713/- needs clarification.
5. The budget of Class-II & Class-IV under H/A 08/1003 & 08/1004 has been mentioned in a
single page which is wrong. The budget register has been maintained in a hotchpotch
manner which needs improvement and proper supervision.

In the cases shown below, the department has incurred excess/less expenditure than the
allocation:
2011-12

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S.No. Head of account Total Allocation Expenditure (Rs.) Difference
(Rs.)
1 08/1001 19,00,000 1840705/- (-)-
2 08/1002 13,70,000- 1921415/- (+)/-
3 08/1003 33,00,000- 18580741+344350 (+)/-
+2430445=/-
4 08/1004 30,00,000- 374013+824013+ (+)/-
726749+2012530/-
5 8/1119 12,00,000- 11,54,047/- (-)1,/-
6 08/1193 Telephone 3,00,000 2,76,666/- (+)/-
7 68/1232 15,00,000- 497202/- (-)/-
8 08/1156 10,000- 12,942/- (+)/-
9 69/1004 10,00,000- 1070154/- (+)/-
10 67/1018 3.50 crores 4858242/- (+)/-
11 89/1155 50,00,000/- 49,99,650/- (-)/-
12 XL-III-D-IV 3,00,000/- 2,04,152/-

From the above table, it is clearly seen that huge amounts are being spent from the Head of
accounts shown above. Audit may be clarified the reason and also be clarified the reason for huge
savings and excess expenditure in many head of accounts

In view of the above, it is also revealed that the department has violated the norms of GFR
for controlling the budget allocation & expenditure during the said year. The irregularities may be
examined and regularized under intimation to Audit.
.
PARA NO.-8: IRREGULARITIES FOUND IN THE G-8 BOOK STOCK REGISTER
G-8 book stock register has been produced w.e.f 01.10.09 to 01.03.2012. In this register
neither paging nor paging certificate has been given, cuttings and overwriting have been found at
many places without attestation. No signature of any supervisory officer as a token of checking,
many G-8 books issued earlier and completed, not shown written in the register, No requisition
letter for obtaining/issuing G-8 books were produced before audit.

Circulars issued from Finance Department with regard to guidelines of handling of G-8 books
from time to time has not been adhered to by the department. The G-8 Books shown issued,
returned back and re-issued accordingly not being considered/accounted for.

PARA NO.-9: HUGE LOSS TO M.C.D. DUE TO NON COLLECTION OF LICENSE FEE, AS PER
D&C REGISTER

The department, produced only one D&C Register of Ward No.90 containing details of
tehbazari as DCM Road Tyre Mkt-145 tehbazari sites, out of which sr.no.1 to 5 shown demand
demolished.The rest of the D&C Registers were not produced for the reasons best known to the
department.

A test check of the following sites shows the following arrears as mentioned in the D&C
Register:

Sno. Name of Road /Tehbazari Sites Arrear Payment

1. Munshi Ram S/o Mata Ram T-799 750180/-
2. Sant Ram S/o Gurmail Singh 280408/-
3. Mohan Lal, T-834 54036/-
4.
Total: /-
------------
No residential address of squatters/tehbazari holders are given in the D&C Register. Sites at
above i.e. sr.no.1,2,3 have been cancelled without recovery. The outstanding dues of Rs.--------
could not be collected and it is a loss to MCD.

2. Gaps Rani Jhansi Road having following two squatters only:

(a) Kasturi Lal S/o Devi Dutt &
(b) Sahib Singh S/o Atma Ram.
Total dues paid has been shown upto 31.03.2009. No mention regarding further recovery
upto date w.e.f. 01.04.09.

3. Tehbazari DCM Road side, Kishanganj Railway Station- In this tehbazari site there are total
25 squatting sites of different size including two handicapped sites. List of outstanding dues
upto 31.03.2011 has been shown as under:-
(a) Sh. Narain Jelha -7,29,423/-
(b) Jetha Ram -5,45,665/-
© Dalu Ram -3,92,483/-
(d) Permanand -2,85,009/-
(e) Ganesh Chand -1,90,263/-
Total:Rs.21,42,843/-

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The abovementioned recovery are upto 31.03.2011. There is no mention regarding recovery
w.e.f.01.04.11 to 31.03.12. There is no details regarding monthy/yearly rate of tehbazari in the
D&C Register.

4. At page no.126-127 in D&C of Ward No.90, 14 nos. of tehbazari sites have been mentioned
under head “Miscellaneous” . No mention of outstanding or current arrear in the D&C
Register. No mention of rate monthly/yearly rate of tehbazari is mentioned in the register.
5. There is total 8 tehbazari sites of 5x7’ at DCM Road Tyre Mkt and total dues upto
31.03.2011 has been mentioned recovered from all 8 tehbazaries. But no monthly/yearly
rate of tehbazari fee is shown mentioned in D&C Register. No mention regading outstanding
arrears and current arrears w.e.f. 01.04.11 to 31.03.12.
6. One handicapped tehbazari site at M.M.Road Rani Jhansi Road has been shown in the D&C
Register but no mention of arrears outstanding/current is mentioned in the register.

This was the dues of only one ward. Since no other D&C registers were given, the actual
dues could not be calculated.

Thus from the above, it is seen that an amount of Rs.------------/- as arrears are still lying
unpaid as shown in the Register. As such M.C.D. is suffering huge losses due to non recovery of
these arrears. This is the picture of only one D&C Register produced before the audit. It may be
known to Audit, the efforts made by the License Inspectors and the supervisory officers responsible
for the recovery of these amounts. The Authority Competent may also look in to the matter
seriously to make sincere efforts to recover the arrear of license fee. This is being a test check and
requires review of all other D & C registers on said line of actions.

Further scrutiny shows that the register has not been maintained properly. There is no
mention of current as well as arrear amount against many tehbazari sites due to which correct
calculation cannot be made. At many places the original amount has been reduced without having
any remarks. There is neither total of arrears or payment. There is no signature of any higher
authorities, which shows that any officers have ever checked the register. Huge amount
of arrears also shows that no efforts have been made by the Zonal officers to collect the
arrear amount causing heavy loss to the MCD for principal as well as interest amount on
it. At many places fluid has been used which needs to the checked whether the correct
amount at the prescribed rate of MCD has been calculated or not.

Apart from the above it has been found that the register is not paged neither any paging
certificate has been given at the first page of the register. Many cuttings and over writings have
been found in this register without any attestation. At many places the arrear amount has been cut
and either enhanced or reduced but surprisingly no supervisory officer had ever checked this
register. It shows that the Licence Inspectors are all in all for such calculations and no officer ever
bothered to check whether the calculation shown in the register is correct or not.

Audit is in the view that sincere efforts needs to be made by the supervisory officers to go
through these D&C of the whole zones and to take action to get the arrears calculated in a right
way and sincere efforts to get these arrears collected from the defaulters with interest to save
further loss to MCD. This fact was also brought to the notice of senior officer through previous audit
reports but neither the reply has been sent to this office nor sincere efforts has been made by the
senior officers to take remedial action which is clear from the above said report.

PARA NO.10: NON-MAINTENANCE OF RECORD PERTAINING TO WARD NO.85:

During course of audit, it was reported that the Ward no.85 was transferred to S.P.Zone
from City Zone during the year 2007 but the relevant D&C Register & other related files were not
transferred to SPZone till date , hence no license fee was being charged by the SPZone. The matter
was discussed with AO/SPZone who produced a note dated 31.01.12 sent to DC/Sity Zone
requesting therein to send the tehbazari record i.e. list of tehbazaries transferred from City Zone
but till the date of audit, no records were sent to SPZone. Thus no recovery is being effected
having loss beyond calculation to MCD for the last five years. This is due to non-caring of the issue
by the officers of City Zone as well as S.P.Zone.

Competent Authority is requested to look into the matter urgently to sort out the same so
that recovery may be effected and further loss to MCD may be saved.

An Audit Memo in this regard bearing no. IAD.ZAP/SPZ/2012/07 DATED

15.03.2012 was isisued to the Asstt.Comm. but no reply was received in this regard

PARA NO.11: IMPROPER MAINTENANCE OF CASH BOOK

During the course of test audit of the Cash Book of General Brach w.e.f.01.08.2011
onwards, produced to audit, it was observed that:-

1. No paging done or paging certificate provided at the first page of the Cash Book;

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2. The daily closing of the book is not done. No closing balance and opening balance of the
cash book being operated by the department. Only the income and expenditure during the
day are shown.
3. The transactions shown in the book are without attestations of the dealing assistant and
authority competent. No relevant record like Disbursement Register is being maintained and
produced to audit. In absence of said registers, the authenticity of any payment made out
of said cashbook is not justified or is in order. The instructions have been given to maintain
the disbursement register immediately.
4. The pay of Sh. D.N.Gautam, AO for Aug-2011 has been shown Rs.29903/- and of Sh.
Darshan Kumar Asstt.Comm. Rs.28446/- total Rs.58349/-. The amount has been withdrawn
on 29.08.2011 but in the disbursement side of Cash Book, the amount of pay of Sh.
D.N.Gautam has been shown Rs.29303/- and of Asstt.Comm.Rs.28446/-, the total has been
shown Rs.58349/- in place of rs.57749/-, short of Rs.600/-, needs clarification.

5. No Bank Reconciliation Statement of Bank Account operated in the General

Branch/SPZ is being maintained.

6. Cuttings/overwritings have been found at many places.

PARA NO.12: IRREGULARITIES IN THE OLD AGE PENSION RECORDS/ FORMS

Only one register of Old Age pension was produced pertaining to Ward No.85 w.e.f. 01-04-
10. It contained 584 names mentioned to which old age pension has been paid w.e.f. 01.04.10
to the widows/handicapped persons. It bears cutting/overwritings at many names like at serial
no. 102, the name Sarti changed to Sarita, 127, Sharda Devi to Sharda, 145, Laxmi Devi to
Laxmi etc.etc. Further cutting/overwritings have also been found at sr.nos.205, 232, 258, 263,
375, 544 72, etc.etc. A test check of the record shows the following irregularities:

1. No date of any cheque has been mentioned in the register;

2. No certificate of disbursement has been given;
3. Cuttings/overwriting have been found in the cheque nos. without attestation by the
authority competent.
4. no paging certificate has been given in the register in the beginning of the register;
5. The cheque no.122690 dated 24.11.2010 has been shown disbursed against serial no.293
named Chander Sain but the same cheque is pasted in the register as undisbursed. No
remarks has been given on it, needs clarification.
6. Likewise at sr.no.127, name Sharda, Ch.No.122527 has been shown disbursed but the said
cheque is pasted/cancelled in the register. There are many such cases which needs special
attention of the competent authority.
7. Against sr.no.257 & 258 named Anjana & Kailash against Ch. No.122656 & 57, new Cheque
nos.122749&50 have been mentioned but these cheques are not pasted in the register;
8. Against sr.no.259 & 260 named Mohan Lan and Indra Ch. Nos.122658 &59 are mentioned
but old cheques are not pasted;
9. No mention regarding cheque no.126481, no cheque was found pasted.
10.Ch.No.126195 has been shown disbursed to Mali Devi at s.no.242 but said cheque is pasted
in the register . In lieu of it Ch.No.085250 dated 03.03.11 has been shown issued but no
mention in the register.

11.Also no counter records showing authenticity of payments made were made available before
audit.

PARA NO.13: OBSERVATIONS REGARDING PERSONAL FILE AND SERVICE BOOKS:

(A) PF and SB of Sh. Janak Maanjhi S/o Gulab Chand Manhjhi, LDC:

(a) No photograph pasted in the service book of the incumbent;

(b) No entry of EL availed w.e.f. 12.05.86 to 11.06.86 and 18.11.02 to 28.11.02 has been
found entered in the E/L account while the application is placed in the file;
(c) EL taken w.e.f.21.05.01 to 30.05.01 and extended w.e.f. 30.05.01 to 12.06.01 but in the
E/L account entry has been made only for the period 30.05.01 to 12.03.01;
(d) The file is unpaged.
(e) No signature of incumbent at page-8 of the SB.

B. The PF & SB of S/Sh. Satish Chand Sharma,UDC, Naresh Sharma, Beldar, Man Mohan Singh,
Peon were also checked and some common shortcoming were found as under:-
(a) GPF nos. are not written in the SB/cover page;
(b) Leave accounts have not been completed uptodate;
© The signature of DDO and incumbents are not available at the relevant columns;
(d) No entry of educational qualification at page-4 of SB.

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INTERNAL AUDIT OFFICER
ZAP/S.P.ZONE

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