Rs 19-crore loss for Faridabad due to imprudent fund management

Bijendra Ahlawat

Tribune News Service

Faridabad, August 9

Faridabad Smart City Limited (FSCL), which is carrying out the work of the Smart City project here, seems to be in trouble following the reports of the alleged imprudent management of surplus funds.

An audit team of the Principal Audit General (PAG), Haryana, has claimed that the FSCL suffered a loss of Rs 19.68 crore by not keeping the surplus funds in fixed deposit (FD) in 2017-2018.

A report dated June 18 says while clear guidelines had been laid by the Joint Parliamentary Committee (JPC), which governs the investment of surplus funds by public sector enterprises to avoid misuse of funds, it has been observed during the course of the audit that surplus funds were lying in the current account of the company ranging from Rs 184.20 crore (April 1, 2017) to Rs 382.70 crore (February 11, 2018).

The team observed that the company (FSCL) could have deposited the surplus funds in the fixed deposit or invested the sum to yield better returns. “Had it invested its surplus funds in the FD from April 1, 2017, to February 11, 2018, it could have earned the interest income of Rs 19.68 crore (calculated at the rate of 6.75 per cent per annum), but the funds were kept in the current account and yielded no income,” the team observed.

The audit team has sought justification in this regard. A letter has been written by the senior audit officer to the CEO-cum-Director of the FSCL, Faridabad.

Monika Gupta, additional CEO, FSCL, said no letter or communication regarding the audit objection had come to her notice so far.

Audit team’s findings

• An audit team of the Principal Audit General, Haryana, has claimed that Faridabad Smart City Limited suffered a loss of Rs 19.68 crore by not keeping the surplus funds in fixed deposit (FD) in 2017-2018. 
• A report dated June 18 says it has been observed during the course of the audit that surplus funds were lying in the current account of the company ranging from Rs 184.20 crore (April 1, 2017) to Rs 382.70 crore (February 11, 2018)