JMC incurred extra expenditure of Rs 34 lakh on fodder

An "imprudent" decision of Jaipur Municipal Corporation (JMC) resulted in avoidable extra expenditure of Rs 34 lakh in connection with procurement of fodder for a gaushala, a CAG report has said.
The decision was related to procurement of fodder on higher rates for Hingaunia Gausahala, which is in the news for deaths of hundreds of cows.
The extra expenditure was incurred by giving supply offer to non-participating firm with retrospective effect instead of inviting fresh tenders for procurement of fodder, the report said.
The report on local bodies for the year 2014-15 reveals the decision after a test check (March 2015) of the records related with Hingaunia Gaushala of the municipal corporation for the period of 2013-14.

As per the report, the JMC finalised tender in favour of a firm and issued work orders which led to an extra expenditure of Rs 34 lakh.
"Scrutiny by audit reveals that firm started the supply of Khakhla and kutti from February 6, 2013. It continued the supply at original rates up to April 26, 2013.

"Subsequently, it refused to supply Khakhla at the contractual rates due to abnormal increase in rates and offered an increased rate of Rs 735 per quintal," the report said.
To consider this offer, the JMC constituted a committee to conduct a survey for establishing market rates for Khakhla and recommended the rate of Rs 730 per quintal.

So, the JMC purchased 14,476.85 quintal Khakhla at the rate of Rs 730 per quintal and paid Rs 1.06 crore to the firm which was not in order as the contractual rate was Rs 497 per quintal.
"This resulted in extra expenditure of Rs 34 lakh on procurement of fodder because fresh tenders were not invited," the report stated.
The matter was referred (October 2015) to the state government and reply is awaited (February 2016).