Chandigarh: Audit finds financial mismanagement in Panchayat Bhawan operations

Tribune News Service

Dushyant Singh Pundir

Chandigarh, March 28

Audit Department has unearthed financial mismanagement in the operations of Panchayat Bhawan, now converted into UT Guest House-2, located in Sector 18. Now, this facility is run by the Hospitality Department of the UT Administration.

The audit report 2019-2022 has observed various discrepancies in the management of Panchayat Bhawan. One of the findings is the loss of revenue amounting to Rs 39 lakh due to the cancellation of the booking of hall number 502. The report observed that booking of the hall was cancelled and the advance payment of Rs 2.15 lakh deposited by the client was allowed to be adjusted against the booking of hall number 501. It was a major decision having an impact on the revenue of the Panchayat Bhawan Society to the tune of Rs 39 lakh, remarked the report.

Further, it was observed that hall number 501 was leased out in favour of a client for three years from April 1, 2018, to March 3, 2021, with a minimal increase in the rent by Rs 500 per day, without following proper procedure as per rules. “Hence, increasing the rent without ratification from the Governing Body and without wide publicity/observance of Rules is irregular,” stated the report.

The Hospitality Department allocated Rs 31 lakh and Rs 34.12 lakh on February 8, 2020, and April 30, 2020, respectively, to meet the liability towards salary of regular staff, wage of outsourced staff and payment of retirement benefits of employees, subject to the condition that 50% share of the society likely to earn be remitted to the Consolidated Fund of India. However, the detail of refund of 50 per cent government share during the period of audit not made available, stated the report.

The report also sheds light on the mismanagement during the Covid-19 pandemic, where 32 double bedrooms and 100 dormitory beds were utilised for quarantine purposes from March 20, 2020, to November 17, 2020, incurring a loss of Rs 33.66 lakh. As per the letter dated May 1, 2020, Panchayat Bhawan will not levy any room tariff on who came for quarantine during Covid period up to May 13, 2020. Accordingly, Panchayat Bhawan did not charge any rent from the occupants. The report found that for 55 days, from March 20, 2020, to May 13, 2020, Panchayat Bhawan suffered a loss of Rs 33.66 lakh.

The report has advised that matter regarding creating the Pachayat Bhawan as quarantine centre from March 20, 2020 to May 13, 2020, (without any charges), may be taken up with the authorities concerned and recover the amount at the earliest or the matter be brought to the notice of the General Body for appropriate order. RK Garg, who obtained the information through RTI, requested the UT Administration to conduct a thorough scrutiny of society’s accounts to safeguard revenue interests.

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