CAG raps Goa mines dept for short recovery of stamp duty

The Comptroller Auditor General (CAG) has rapped the Goa Directorate of Mines and Geology for lapses in recovery of stamp duty and lack of mechanism for independent check over grade of the ore.
The CAG report, which was tabled during the recently held state Assembly session, has pointed out that the Directorate of Mines and Geology during renewal of lease deeds to the mining firms erroneously worked out the stamp duty causing loss of Rs 4.50 crore.
The department headed by Director Prasanna Acharya had renewed 88 mining leases between November 6, 2014 to January 12, 2015, under section 8(3) of MMDR Act-1957.

The CAG has observed that out of 88 lease deeds that were renewed, only three lease deeds were executed and registered as on July 2015.
"In these three lease deeds executed and registered we observed that the Directorate worked out the stamp duty erroneously in respect of two mining leases executed during the period from May 18, 2015 to June 8, 2015," the report has mentioned.
"The stamp duty collected by Directorate of Mines and Geology was Rs 9.75 crore instead of Rs 14.25 crore. This has resulted in short levy of stamp duty of Rs 4.50 crore," the audit report (CAG) states.

In another observation, CAG has mentioned that there was "absence of mechanism for an independent check over ore grade and quality of ore declared by the lessee for recovery of royalty".

The CAG has said royalty on iron ore lumps or fines or concentrates are to be recovered based on iron content.
"As per section 24 (1) of MMDR Act, 1957, any person authorised by the state government may enter and inspect any mine, survey and take measurements, weigh or measure the stocks of minerals lying at any time," the report said.
"We observed that third party test reports of the samples were neither insisted by the department nor furnished by the exporter or producer of iron ore. Royalty paid on the quality and iron content declared by the dealer was not verifiable from the records maintained by the department," the CAG said.

The audit further observes that "no supporting documents in this regard were available either in royalty challans or in any other documents available with the department".
"Thus, in the entire process the quality and iron content declared by the dealers, which is the basis of levy of royalty was not independently verified by the department," the CAG has said.
The mining industry in the state came to a halt in 2012 after the Supreme Court imposed a ban owing to allegations of illegalities.
Mining activity, which is the backbone of Goa's economy, resumed in 2014 with the condition that the state government re-allot all the leases.