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CAG pulls up C'garh govt on budgetary support to 10 PSUs

Press Trust of India  |  Raipur 

The Chhattisgarh government had provided budgetary support of Rs 9,463 crore to 10 state-run public sector undertakings (PSUs) despite their accounts being in arrears for periods ranging from one to four years,a CAG report on state finances said.

The CAG report, for the year ended March 31, 2018, was tabled in the Assembly on Friday by Chief Minister Bhupesh Baghel.

The state government had provided budgetary support (grants and subsidies) and accepted liability (guarantee) for 9,463.02 crore in 10 PSUs during the period for which their accounts were in arrears up to March 31 last year, the report said.

These PSUs have not finalised their accounts for the last one to four years (between 2014-15 to 2017-18), which is gross violation of provisions of the Companies Act, it said.

Of these, Chhattisgarh State Power Distribution Company Limited (CSPDCL) was provided the maximum budgetary support of Rs 5366.29 crore, despite its accounts being pending for finalisation for the year 2017-18, the report said.

The Chhattisgarh State Civil Supplies Corporation Limited was allocated Rs 3026.29 crore, it added.

Due to non-finalisation of accounts, the Comptroller and Auditor General (CAG) was unable to perform supplementary audit of companies as stipulated in Companies Act for periods of up to four years, report said.

It denotes failure of the administrative departments concerned, specifically of the Finance department, to ensure the defaulting companies comply with relevant Acts, it added.

It is of specific interest to observe that even in the absence of accounts to judge the genuineness of demands for financial support from these PSUs, the finance department has regularly provided budgetary support to them by way of equity, loans and grants-in-aid/subsidies, guarantees etc, the report pointed out.

The CAG has recommended the Finance Department review PSUs, and ensure accounts are made current within a reasonable period, and stop financial support in all cases where accounts continue to be in arrears, it said.

Chhattisgarh Accountant General (Audit) Dinesh R Patil later told reporters that these 10 companies could face penal action under provisions of the Companies Act.

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Fri, November 29 2019. 20:25 IST
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