Chandigarh: Registration and Licensing Authority fails to recover Rs 67.15 lakh from vanity number bidders

Dushyant Singh Pundir

Chandigarh, June 14

Unable to recover fee from many successful bidders on special/fancy registration numbers, the Registration and Licensing Authority (RLA) has planned to amend the terms and conditions of e-auction.

In its report, the Principal Director of Audit (Central), Chandigarh, has pointed out that the RLA has failed to recover fee of special/fancy registration number allotted through e-auction along with interest and penalty amounting to Rs 67.15 lakh from fiscal 2020-21 to 2022-23.

During checking of records of the RLA for 2022-23, it was noticed that many successful bidders had deposited only the reserve bid amount and delayed the rest of the payment for periods between 365 days to 619 days beyond the stipulated time, which resulted into loss of revenue.

The audit report pointed out that non-provision of clause regarding timeline fixed for the release of special/fancy number in the relevant Act has resulted in not only the non-allotment of special/fancy numbers to the general public but also loss of Rs 67.15 lakh.

On being pointed out in the audit, the department stated in its reply that the matter is under active consideration and they were considering amending terms and conditions of e-auction.

The reserve price of the non-transport vehicles has been fixed by the Chandigarh Administration against each special number. As per terms and conditions of online/e-auction, a successful bidder has to get the vehicle registered as well as deposit the balance bidding amount within one month from the date of auction, failing which penalty at 10% per annum as well as the interest at 10% per annum on the balance amount would be charged till the date of payment. If after auction, the highest bidder is unable to take the number due to any reason, the amount deposited by him shall be forfeited.

The Audit Department further noticed that no post for staff to be put on various receipt counters has been sanctioned by the government. The work of collecting all receipts in the department has been performed through contract staff hired from the Indian Red Cross Society (IRCS), Chandigarh. But the department was not making any payment to the IRCS on account of salary for the contract staff. However, the department has paid IRCS Rs 15.48 crore (including Rs 1.96 crore paid during 2022-23) since 2015-16 as share against the printing of smart cards.

On being pointed out, the department stated that the UT Administration has not sanctioned any post for various receipts counters and the contract staff has been hired from the IRCS for collecting all receipts in the department.