13 October 2012

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Full Inspection Report of Zakir Hussain Memorial Trust Recover Rs. 71.50 Lakh

Full Inspection Report of Zakir Hussain Memorial Trust Recover Rs. 71.50 Lakh

Dr Zakir Hussain Memorial Trust is named after Salman Khurshid's maternal grandfather, the late President Dr Zakir Hussain, has been accused of allegedly misappropriating Rs 7.15 million granted to it by the Union ministry of social justice and empowerment to provide aids and appliances to handicapped people in the minister's native Uttar Pradesh.

Salman Khurshid is the president of the Trust; his wife is the project director


Now TOI and NDTV, PTI have reported that
Law Minister Salman Khurshid's wife Louise Khurshid filed a civil defamation case in the Delhi High Court against Headlines Today and Aaj Tak, TV channels for broadcasting a programme alleging that their NGO siphoned off lakhs of rupees meant for physically challenged people.

TOI reported that damages of Rs 100 crore have been claimed in the lawsuit filed by Louise against the TV Today group for broadcasting the "defamatory" programme on its channels --Headlines Today and Aaj Tak recently.

The case is likely to be listed next week.

Below is the full copy of Inspection Report

Read the full inspection report



THE DIRECTOR GENERAL OF AUDIT CENTRAL EXPENDITURE, NEW DELHI-110002
Inspection Report on the Transaction Audit and Grants-in-aid released by the Ministry of Social Justice and Empowerment for the year 2011-12
Part — I (A)
(I)              Introductory
The audit of the accounts of the Ministry of Social Justice & Empowerment, Shastri Bhawan, New Delhi for the year 2011-12 was conducted by a local audit party comprising Shri M. P. Joshi, Sr. Audit Officer, Shri Manish Bhatia, Assistant Audit Officer (02.04.2012 to 07.05.2012), Shri Naveen Kumar Singh, Assistant Audit Officer (from 08.05.2012 to 13.06.2012) and Smt Rubi Kumari, Senior Auditor of the Office of the Director General of Audit, Central Expenditure, New Delhi from 02.04.2012 to 13.06.2012. The last transaction audit and Grants-in-aid audit of the Ministry was conducted from 05.04.2011 to 01.07.2011 (60 working days).
(II)           Mandate and Activities of the Ministry
The Ministry of Social Justice & Empowerment (Ministry) is responsible for policies and programmes for the empowerment/welfare of the disadvantaged and marginalized sections of the society such as
·              Scheduled Castes (SCs) and Other Backward Classes (OBCs)
·              Persons with Disabilities (PWDs),
·              Senior Citizens, and
·              Victims of Substance (alcohol and drug abuse)
The Ministry carries out the above mandate through:-
·              Educational, economic and social development and empowerment of SCs, OBCs and PWDs, and
·              Provision of necessary support and services for senior citizens and victims of substance abuse


Activities of the Ministry
Welfare Schemes for development of persons belonging to socially disadvantages groups such as Scheduled Castes, Other Backward Classes, Persons with Disabilities (PwD), Senior Citizens and Victims of Substance Abuse are implemented through State Governments/UT Administrations, Autonomous Bodies, Institutes and Voluntary Organizations. Educational development of SCs, OBCs, and PWDs is achieved through schemes of providing scholarships, hostels, coaching and fellowship to students of these target groups. Similarly, four National Finance and Development Corporations of the Ministry meant for SCs, Safai Karamcharis, OBCs and PwDs, respectively, provide concessional credit for various income-generating
activities towards economic self-reliance.             The Ministry releases grants-in-aid to these
implementing agencies in order to implement various schemes in operation.
Implementation of these schemes is being done through the four major divisions/bureau in the Ministry viz. Scheduled Caste Development Bureau, Backward Classes Division, Social Defence Division and Disability Divisions. Each Division is headed by a Joint Secretary.
(III) Officers holding the charge of different posts:
The following officers/officials have held charges of the respective posts indicated below for the period 2010-11:
S No.
Post held
Name and Designation
1
Head of the Department
Shri R.S.Meena, Director (Admin)
2
Head of office
Shri Uttam Prakash, Under Secretary
3
Drawing and Disbursing Officer
Shri S.K.Sharma, Section Officer
4
Cashier
Shri M. S. Hameed, Assistant

(IV) Funding Pattern
The Ministry of Social Justice & Empowerment, New Delhi releases funds as grant-in-aid to different organizations / states under different schemes and its secretariat under Detailed Demand for Grant, Demand No-89 under Plan and Non Plan. The Budget Provision and Actual Expenditure during last three years are given below:


Secretariat
(Rs in lakh)
Year/Head
Budget Provision (Year-wise and
Head-wise)
Actual Expenditure
(Year-wise and Head-wise)
Plan
Non-Plan
Plan
Non-Plan
2009-10
100.00
1984.00
93.00
2020.26
2010-11
100.00
2125.00
90.32
2080.44
2011-12
100.00
2298.00
101.00
2285.04
Total
300.00
6407.00
284.32
6385.74

Grant-in-Aid
(Rs in crore)
Year/Head
Budget Provision
(Year-wise and Head-wise)
Actual Expenditure
(Year-wise and Head-wise)
Plan
Non-Plan
Plan
Non-Plan
2009-10
2360.00
46.71
2315.89
43.94
2010-11
4268.00
39.75
3939.54
38.65
2011-12
5120.00
39.85
4709.38
46.51
Total
11748.00
126.31
10964.81
129.10

(V) Internal audit
The last internal audit of the Ministry was conducted in July 2002 for the year April 1999 to March 2002 by the Office of the Chief Controller of Accounts, Ministry of Human Resource Development.
Part - I (B)
Status of old outstanding objections
At the commencement of current audit 8 Inspection Reports with 39 paragraphs of DDO audit and 10 Inspection Reports with 68 paragraphs of Grant-in-Aid audit were pending for settlement.


It was noticed that the Ministry has not replied to audit objections since long. Keeping in view the huge pendency, several requests were made for settlement of old observations and finally the matter was brought to the notice of the Joint Secretary, Ministry of Social Justice & Empowerment. No replies of the outstanding paragraphs were received. Hence all the paragraphs pertaining to Transaction audit and grant-in-aid audit were remained outstanding.
(I)        Result of review of old outstanding objections (DDO)
At the commencement of the current audit, 8 Inspection Reports with 39 paragraphs were pending for settlement. During audit, one para has been taken afresh. Thus, at the close of audit 8 Inspection Reports with 38 paragraphs remained pending for settlement. The details of paragraphs settled and outstanding are mentioned below:
List of paragraphs settled (DDO)
S.
No.
Year of IR
 Para
No
Particulars
Remarks
1
2010-11
19
Non adjustment of advances amounting to Rs.26.88 lakh
Taken afresh

List of paragraphs outstanding (DDO)
S. No.
Year of IR
Para
No.
Particulars
Remarks
1
1999-02
9
Irregular purchase of photocopier amounting to Rs. 9.52 lakh
Reply not furnished
2
1999-02
10
Irregular expenditure of Rs. 7.29 lakh
Reply not furnished
3
1999-02
11
10 line UPS if 500 VA worth Rs. 54410 not received by the Ministry
Reply not furnished
4
2002-04
1
Irregular payment for repairing work
Reply not furnished
5
2002-04
4
Excessive expenditure on furnishing of MoS residential office
Reply not furnished
6
2004-06
2
Excess consumption of 469 litres of petrol
Reply not furnished
7
2004-06
4
Excess payment of Rs. 74110 made due to non-payment of speed post bills due date
Reply not furnished
8
2004-06
5
Recovery of Rs. 9415 on a/c of excess telephone calls
Reply not furnished
5.1
Delay in payment of telephone bills led to surcharge of Rs. 3950
9
2004-06
9
Mortgage bond and flats not insured against HBA advance
Reply not furnished
10
2004-06
10
Irregular conveyance bills
Reply not furnished
11
2004-06
11
Non-production of records
Reply not furnished
12
2006-07
1
Delegation of financial powers
Reply not furnished
13
2006-07
2
Non-adjustment of advances
Reply not furnished



S. No.
Year of IR
Para
No.
Particulars
Remarks
14
2006-07
3
Violation of codal provisions in purchases
Reply not furnished
15
2006-07
5
Outstanding credit bills of staff canteen for Rs. 3.20 lakh
Reply not furnished
16
2006-07
6
Excess payment of Rs. 27,348 made due to non-payment of speed post bills by due date
Reply not furnished
17
2007-08
1
Short recovery of income tax from salaries of
Govt.              Officers who have been allowed
deduction of interest on Borrowed Capital for computation of Income from House Property
Reply not furnished
18
2007-08
2
Irregularities in hiring of vehicles for official use in the Ministry resulting in over payment of Rs.76,347 due to incorrect and inflated rates of hiring.
Reply not furnished
19
2007-08
3
Purchase of compactors-excess expenditure of Rs.5,86,080/-
Reply not furnished
20
2007-08
4
Purchase      of    furniture-suspected      bogus
payment of Rs.32,063/-
Reply not furnished
21
2007-08
6
Non-adjustment    of     abstract     contingent
advances
Reply not furnished
22
2007-08
7
Non-adjustment of TA advance
Reply not furnished
23
2007-08
8
Computers lying unutilized
Reply not furnished
24
2008-09
1
Splitting of purchase of stationery items
Reply not furnished
22
2008-09
2
Extra ordinary expenditure on repair and maintenance of vehicle Rs 1,16,059
Reply not furnished
26
2008-09
4
Wrong fixation of pay Rs 69,938
Reply not furnished
27
2009-10
1
Non-observance of fiscal instructions
Reply not furnished
28
2009-10
2
Irregular purchase of laptop bags amounting to Rs 1,77,188
Reply not furnished
29
2009-10
3
Irregular payment of Honorarium of Rs 74,100/‑
Reply not furnished
30
2009-10
4
Avoidable payment of Rs 18,000/-
Reply not furnished
31
2009-10
5
Non adjustment of advances
Reply not furnished
32
2009-10
6
Outstanding credit bills of staff canteen for Rs 2.41 lakh
Reply not furnished
33
2010-11
6
Short recovery of income tax of Rs. 3.05 lakh
Reply not furnished
34
2010-11
8
Unjustified Expenditure of Rs.40.72 lakh
Reply not furnished
35
2010-11
13
Irregularities      in     outsourcing     of     event
management for National Award Function
Reply not furnished
36
2010-11
15
Irregularities in procurement of UPS
Reply not furnished
37
2010-11
16
Non     deduction   of    income    tax     source
amounting to Rs.42,754/-
Reply not furnished
38
2010-11
17
Irregularities in hiring of private vehicle
Reply not furnished



Text Box: At the commencement of the current audit, 10 Inspection Reports with 68 paragraphs were pending for settlement. During current audit, replies/ compliances for outstanding(II) Result of review of old outstanding objections (Grant-in-Aid)


paragraphs were not furnished. Therefore no para could be settled. The details of paragraphs outstanding are mentioned below:
List of paragraphs outstanding (Grant-in-Aid)
S.No.
Year of IR
Para No.
Particulars
I Remarks
1.
98-2001
1
Irregular release of grant to Defence foundation
Reply not furnished.
2.
98-2001
2
Excess release of grants amounting to Rs. 91000
Reply not furnished.
3.
98-2001
3
Grants released to help age India
Reply not furnished.
4.
2001-02
1
Blocking of funds amounting to Rs. 54 lakh
Reply not furnished.
5.
2001-02
3
Irregularities in release of grants to Arun Jyoti Sanskrit Samiti, Gwalior
Reply not furnished.
6.
2001-02
5
Irregularities in release of fund to J P Narain Samark, Balia
Reply not furnished.
7.
2001-02
6
Shortcomings          and         irregularities            in
implementation of scheme coaching for weaker sections
Reply not furnished.
8.
2001-02
7
Shortcomings in implementation of scheme-old age home
Reply not furnished.
9.
2002-03
4
Irregular release of GIA without observing the norms under the scheme assistance to disabled persons for purchase/fitting of ADIP scheme
Reply not furnished.
10.
2002-03
5
Unfruitful expenditure and non-monitoring of GIA given for construction of old age home
Reply not furnished.
11.
2002-03
8
Doubtful utilisation of grants for establishing computer training
Reply not furnished.
12.
2002-03
11
Shortcoming in implementation of the scheme- An integrated programme for street children
Reply not furnished.
13.
2002-03
12
Irregularities     in     implementing    the     scheme
working for SCs
Reply not furnished.
14.
2003-04
5
Irregular payment of Rs. 2.17 lakh
Reply not furnished.
15.
2003-04
10
Irregularities in production of film on RCI
Reply not furnished.
16.
2003-04
11
Irregular payment of grant to NGOs to Rs. 168000
Reply not furnished.
17.
2003-04
15
Discrepancies in implementation of the scheme for prevention of Alcoholism and substance (drugs) abuse
Reply not furnished.
18.
2004-05
2
Non accountal of central assistance to tune of Rs. 12.61 crore
Reply not furnished.
19.
2004-05
3
Blocking of funds amounting to Rs. 57.48 lakh under the scheme of OBC boys and girls
Reply not furnished.
20.
2004-05
4
Blocking of funds amounting to Rs. 670 lakh due to non-utilisation of funds under pre-matric scholarship scheme
Reply not furnished.
21.
2004-05
7
Irregularities     in   implementation   of CSS      of
coaching   and    allied    assistance   for    weaker
section
Reply not furnished.
22.
2004-05
9
Outstanding recovery of Rs. 11.22 lakh from the blacklisted NGOs
Reply not furnished.
23.
2004-05
1
Irregularities in construction of Hostels for SC students
Reply not furnished.
24.
2005-06
1
Shortcoming in implementation of the scheme for prevention of Alcoholism and substance (drugs) Abuse
Reply not furnished.


S.No.
Year of IR
Para No.
Particulars
Remarks
25.
2005-06
2
Irregularities in release of grants-in-aid under Deen Dayal Disabled Rehabilitation scheme
Reply not furnished.
26.
2005-06
3
Irregular expenditure on account of interviews
Reply not furnished.
27.
2005-06
4
Irregularities in releasing of GIA to ISIC
Reply not furnished.
28.
2005-06
5
Irregularities in construction of OBC students' hostels
Reply not furnished.
29.
2005-06
7
Outstanding recovery of Rs. 209 lakh from blacklisted voluntary organisations/NGOs
Reply not furnished.
30.
2005-06
8
Non-conducting of performance review
Reply not furnished.
31.
2005-06
9
Improper maintenance of GIA register
Reply not furnished.
32.
2005-06
10
Records of assets
Reply not furnished.
33.
2005-06
11
Non production of certificate of loss
Reply not furnished.
34.
2006-07
1 of Part-
IIA
National Backward Class Finance Development corporation (NBCFDC)
Reply not furnished.
35.
2006-07
2 of Part-
IIA
Indian Spinal Injury Centre (ISIC)
Reply not furnished.
36.
2006-07
3 of Part-
IIA
Post Matric Scholarship Scheme
Reply not furnished.
37.
2006-07
4 of Part-
IIA
Post Matric Scholarship Scheme (PMS) for OBCs
Reply not furnished.
38.
2006-07
5 of Part-
IIA
Pre-Matric     Scholarship   Scheme   (PMS)      for
OBCs
Reply not furnished.
39.
2006-07
6 of Part-
IIA
Construction of hostels for scheduled castes
Reply not furnished.
40.
2006-07
1 of Part-
II-B
Pre-Matric Scholarship Scheme (PMS) for SCs
Reply not furnished.
41.
2006-07
2
Rajiv Gandhi National Fellowship             (RGNF)
scheme
Reply not furnished.
42.
2006-07
4
GIA for providing lift in the Secretariat in the States/UTs under the scheme of implementation of PWD Act
Reply not furnished.
43.
2007-08
1
Post Matric Scholarship Scheme (PMS) for SCs
Reply not furnished.
44.
2007-08
2
Delay in construction of hostels for SCs
Reply not furnished.
45.
2007-08
3
Pre-matric Scholarship Scheme (PMS) for Other Backward Classes (OBCs)
Reply not furnished.
46.
2007-08
4
Delay in payment of scholarship to Pre-matric and Post matric to OBC students
Reply not furnished.
47.
2007-08
7
Register of grants
Reply not furnished.
48.
2008-10
1
Unfruitful grant of Rs 39.47 crore due to delay in construction of hostels
Reply not furnished.
49.
2008-10
2
Unfruitful assistance of Rs 77.51 crore due to delay in construction of hostels and parking of funds of Rs 4.00 crore under Babu Jagjivan Ram Chhatrawas Yojana
Reply not furnished.
50.
2008-10
3
Non-recovery    of grants     of Rs      68.80    lakh
released to blacklisted NGOs
Reply not furnished.
51.
2008-10
4
Non-recovery    of Rs      20.86 lakh        from the
blacklisted NGOs
Reply not furnished.
52.
2008-10
5
Irregular sanction of grant of Rs 21.08 lakh
Reply not furnished.
53.
2008-10
6
Non-laying of Annual Report of Commission
for    National     Safai     Karamcharis      in     the
Parliament
Reply not furnished.
54.
2008-10
7
Scholarship scheme of Top Class Education for
Reply not furnished.


S.No.
Year of IR
Para No.
_                                                                                                         Particulars
Remarks



SC students

55.
2008-10
8
Outstanding Utilisation Certificates amounting to Rs 1061.49 crore
Reply not furnished.
56.
2008-10
9
Pre-matric & Post-matric scholarship scheme for OBCs
Reply not furnished.
57.
2010-11
1 of Part-
IIA
Comments on the Scheme Babu Jagjivan Ram Chhatrawas Yojana
Reply not furnished
58.
2010-11
2 of Part- IIA
Comments on National Overseas Scheme for Scheduled Caste
Reply not furnished
59.
2010-11
3 of Part-
IIA
Scheme of Pre-Matric Scholarship to the Other Backward Classes
Reply not furnished
60.
2010-11
4 of Part-
IIB
Poor Monitoring on the working of National Safai Karamcharis Finance and Development Corporation(NSKFDC)
Reply not furnished
61.
2010-11
5
Outstanding     share    certificates     from     state
schedule     castes     development     corporation
Rs.93.57 crore
Reply not furnished
62.
2010-11
7
Non-review of grants released under National
scheduled    caste   finance    and   Development
Corporation
Reply not furnished
63.
2010-11
9
Non- adherence to conditions and irregular release of grants under the scheme"Special central assistance to special component plan"
Reply not furnished
64.
2010-11
10
Comments on the grants released to National Institute of Social Defence
Reply not furnished
65.
2010-11
11
Non     inclusion     of     accrued   interest      over
Government grant amounting Rs.2.19 crore
Reply not furnished
66.
2010-11
12
Comments on the scholarship scheme of Top Class Education for SC Students
Reply not furnished
67.
2010-11
14
Short achievement of targets under various scheme
Reply not furnished
68.
2010-11
18
Outstanding    utilisation     certificates    for     Rs.
1064.51 crore
Reply not furnished

Part-I (C)
Persistent Irregularities
> Non-conduction of physical verification of stores and stock and improper maintenance of Stock Registers.
> Outstanding Utilization Certificates


CURRENT AUDIT
Part-II (A)
Para- 1
Irregularities in implementing the Scheme of Assistance of Disabled persons for purchase/fitting of Aids/Appliances (ADIP)
Scheme of Assistance to Disabled Persons for Purchase/Fitting of Aids Appliances
(ADIP) aims at helping the disabled persons by bringing suitable, durable, scientifically, manufactured, modern, standard aids and appliances within their reach. Non-Government Organisations (NGOs) possessing professional/technical expertise in the form of professionally qualified staff (from recognized college) for the identification, prescription of the required artificial aids/appliances fitment and post fitment care of beneficiaries as well as aid and appliances and infrastructure in the form of machinery equipment for the fabrication, fitment and maintenance of artificial aid appliances are eligible to receive grant in aid for implementation of the scheme.
The guidelines of the scheme framed by the Ministry and terms and conditions of the grant inter alia stipulated that:
(i)                 The organisation will provide reservation to SC/ST/OBC and disabled persons in
accordance with instructions issued by Govt. Of India from time to time if it employs more than 20 persons on a regular basis.
(ii)               The implementing Agencies will be sanctioned grant-in aid in a particular financial year
after the recommendation from State Government/UT or agencies authorized by the agencies. The subsequent financial assistance would be sanctioned after the receipt of audited accounts and list of beneficiaries with their permanent addresses in the prescribed Performa for the previous year's grant shall be furnished before the end of second quarter of each year positively.
(iii)             List of beneficiaries assisted by the agencies implementing the Scheme is to be provided to the Ministry as prescribed in Annexure IV of the Scheme. The recommending authority should create the field agencies who shall strive to conduct sample checking of beneficiaries regarding utilization of grant in aid by NGOs and distribution of aids and appliances by the Implementing Agency. The sample checking would cover at least 5 to 10 percent of the beneficiaries which are covered under the scheme in the previous year.


(iv)               The Grant-in-aid would normally be released in two installments after processing of
audited accounts and list of beneficiaries furnished by the Implementing agency.
(v)                 The implementing agency would not incur any liability under the scheme unless the
funds have been sanctioned to them for the purpose.
(vi)               The grantee shall not divert the grant and entrust execution of the Scheme or work concerned to another institution or organization and shall abide by the terms and conditions of the grant. If the grantee fails to utilize the grant for the purpose for which the same has been sanctioned, the grantee will be required to refund the entire amount with interest thereon @ 10% per annum.
During the text check of records relating to the Scheme, the following irregularities were noticed in implementing the Scheme by the Ministry.
(a) Misappropriation of grant of Rs. 71.50 lakh interest of Rs. 15.49 lakh thereon and irregular release of further grant of Rs. 68.25 lakh.
On the basis of recommendation of U.P. Government Grant in aid amounting to Rs. 71.50 
lakh was sanctioned to Dr. Zakir Hussain Memorial Trust Delhi (March 2010) as non-recurring 
grant during the financial  year 2009-10 for distribution of aid and appliances under the above 
mentioned scheme. The Scheme was to be implemented in the 17 districts of Uttar Pradesh. 

As per the guidelines of the scheme, the camps were to be held for distribution of aid and appliances. Test check of at least 5 to 10 per cent of the beneficiaries to whom aids and appliances to be given were to be conducted by the field agency created by recommending authority and forwarded to the Ministry. Further, photographs of the Camp/ function for distribution of aids and appliances undertaken with the grant in aid assistance and also press clippings, posters, pamphlets etc. regarding organization of camp(s) for undertaking distribution work are to be submitted to the Ministry with the proposal for subsequent release of grant under ADIP scheme.
Records relating to utilization of grant i.e., holding of camps, conducting of inspection and purchase of aids and appliances in the State of UP revealed that the following were the dates of events/transactions:



Name of district
Date of Camp
Date of
Inspection
Date of purchase of aid and
appliances
From M/s.SPR
From M/s Ear Help India
Bareilly
15.01.10
24.03.11
17.07.10
22.7.10
Rampur
26.04.10
24.03.11
15.7.10
21.7.10
Moradabad
24.04.10
24.03.11
19.7.10
23.7.10
Sant Ravidas Nagar
17.04.10
04.06.10
19.7.10
23.7.10
Siddhartah Nagar
25.01.10
Not given
19.7.10
22.7.10
Gautam Budha Nagar
15.05.10
Not given
17.7.10
21.7.10
Kannauj
25.05.10
22.03.11
15.7.10
21.7.10
Mainpuri
27.05.11
23.03.11
13.7.10
17.7.10
Kashiram Nagar
03.05.10
22.03.11
14.7.10
20.7.10
Etah
05.05.10
22.03.11
14.7.10
17.7.10
Farrukhabad
29.05.10
23.03.11
14.7.10
17.7.10
Allahabad
05.06.10
23.03.11
15.7.10
21.7.10
Etawah
07.05.10
24.03.11
13.7.10
17.7.10
Shahjahanpur
15.02.10
22.03.11
17.7.10
22.7.10
Bulandsheher
02.04.10
23.03.11
16.7.10
22/21.7.10
Meerut
Not available
16.7.10
21.7.10
Aligarh
Not available
14.07.10
17.7.10

Test check of records revealed the following irregularities:
(i)                      In the test check reports relating to Bareilly, Siddhartha Nagar and Shahjahapur, dates of
camp were stated to be 15.01.10, 25.01.10 and 15.02.10 respectively. However, Trust vide letters dated: 01.04.10 addressed to the District Magistrate of these districts intimated that the Trust intended to hold camp for grant sanctioned by the ministry for the year 2009-10. It indicates that camps were not held before April, 2010 in these three districts. Thus, wrong information was furnished by the Trust to the Ministry.
(ii)                     Ministry requested (November 2011) the Special Secretary, Department of Disabled
Welfare, U.P. to confirm the veracity of the test check reports submitted by the Trust for the grants released during 2009-10. Referring to this letter, Chief Development Officer, Allahabad on 16-09-11 and District Magistrate, Allahabad on 07-10-11 confirmed that no camp was organized by the Trust till then. Thus, out of 17 districts, no camps were held in Allahabad, Bareilly, Siddhartha Nagar and Shahjahapur.


(iii)           In remaining of the districts, the Camps were organized during the period January-March 2010. However, the aid and appliances were purchased in July, 2010 as indicated in the table above. In case of Sant Ravidas Nagar, it was noticed that inspection was got conducted on 04.06.2010, but the aid and appliances were dispatched by supplier on 19.07.10.
(iv)           Instead of recovering the grants along with interest of Rs. 15.49 lakh (@ 10% per annual from April 2010 to May, 2012, the Ministry released grant of Rs. 68.25 lakh (March 2011) for the financial year 2010-11 for implementing the scheme in the same 17 districts of U.P. for which grant of Rs. 71.50 lakh was released during 2009-10. As per terms and conditions of the sanctions, a utilization certificate was to be furnished within six months of the close of the financial year i.e. 30.9.11. However, no UC was received till the date of audit.
From the above, it can be concluded that the on one hand entire grant of Rs. 71.50 lakh was not utilized by the Trust for the purpose for which it was sanctioned and on other the wrong report regarding organisation of the camp was given by the Trust.
It is pertinent that annual accounts of the Dr. Zakir Hussein Memorial Trust for the years 2005-06 to 2010-11 were sent to this office which were found attracting audit (except 2006-07) under Section 14 the Comptroller and Auditor General's (Duties, Powers and Conditions of Service) Act, 1971. Accordingly, an audit team deputed for audit w. e .f. 2nd March 2012, visited official address at 4, Gulmohar Avenue, Jamia Nagar, New Delhi for audit. However, audit could not be taken up as no one was available at the address. Thereafter, Audit team was deputed again twice on 19th March and 2nd April 2012 after communiqué to the Trust. However, audit team found no body present at the address; hence audit could not be completed. Moreover, no response from the Trust was received in respect to our communication.
From this finding in the Ministry and chain of events relating to audit of the Trust indicates suspected fraud in the accounts of the Trust. On this issue Ministry stated that The Trust is not under the aegis of this Ministry.
The reply of the Ministry is factually incorrect as the grants have been released by the Ministry of Social justice & Empowerment to Trust and as per the provisions of the sanction order accounts of the Trust would be open for audit by CAG of India. Hence, control with respect to getting the audit of Trust conducted by the CAG of India rest with the Ministry of Social Justice & Empowerment and in event of non compliance of conditions of the sanction order Ministry may take actions against the Trust.


In response to audit observation Ministry in its reply stated (11.06.12) that due to paucity of time, the test check reports for 2009-10 directly submitted by the NGO were accepted subject to the condition that the same would be got confirmed separately. Regarding the holding of Camps during January, 2010 to March, 2010 and procurement of aid and appliances in July, 2010, it was stated that it would be got clarified from the NGO.
The reply is not tenable as the guidelines stipulate that test check reports must come through the State Government and the Ministry failed to properly scrutinize the information furnished by the Trust relating to holding of camps for distribution of aids and appliances
In the light of the above it is suggested that grant of Rs. 71.50 lakh may be recovered from the trust along with up to date interest on it.
 


Source - Rediff


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Saturday, October 13, 2012

Tags - Salman Khurshid Trust Fraud Scam Inspection Report

4 comments:

Virendra Kumar Sharma October 13, 2012  


रीकवरी करेगा कौन भैया -सलमान खुर्शीद से

सैयां भये कोतवाल फिर डर काहे का .

घरका भरतार थाने - दार, अब डर काहे का

भ्रष्टाचार की पटरानी म्हारे साथ अब डर काहे का .

वाड्रा भी यहाँ शह -सवार अब डर काहे का .

MEcoy October 13, 2012  

very informative post sm