CAG pulls up IB for extra expenditure of nearly Rs 60 lakh
Press Trust of India / New Delhi Jul 10, 2009, 16:01 IST
The Intelligence Bureau(IB) had to shell out an additional nearly Rs 60 lakh for purchase of a plot for its Varanasi office due to delay in payment by its headquarters, a CAG report has pointed out.
The Comptroller and Auditor General (CAG) of India has rapped the Bureau for the extra expenditure of Rs 59.61 lakh in purchase of the plot.
"IB purchased a plot measuring 1,600 square meters for its office building at Varanasi from UPHDB in September 2006 at a total cost of Rs 1.95 crore. Audit examination disclosed that the cost included an extra expenditure of Rs 59.61 lakh," the report said.
Country's auditor said the terms of allotment of Uttar Pradesh Housing and Development Board (UPHDB) indicated that the offer would be automatically cancelled if the payment was not made by February 28, 2005.
"The IB headquarters did not even initiate the proposal by the due date. This led to cancellation of the offer by UPHDB," the report said.
The offer of allotment of the same plot was revived by the UPHDB in February 2006 and their revised demand of Rs 1.79 crore included interest of Rs 30.64 lakh at 19 per cent from original due date of payment, CAG said.
"The discount of 10 per cent for timely payment was also withdrawn by the UPHDB in the revised offer," it said.
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