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Our Bureau

Hyderabad , July 29

THE Audit Report 2002-03 (Commercial) of the Comptroller and Auditor General of India (CAG) has exposed the various lapses committed by Andhra Pradesh State Housing Corporation Ltd (APSHC), Andhra Pradesh State Civil Supplies Corporation Ltd (APSCSC) and Andhra Pradesh State Financial Corporation Ltd (APSFC). The report was tabled in the State Legislative Assembly on Thursday.

The CAG report states that the one-time settlement (OTS) scheme introduced by the APSFC during June 1992 was defective as it did not specify the cut-off date and criteria for settlement of loan accounts where sale proceeds of seized assets were already adjusted.

In settlement of loan accounts, the corporation suffered substantial losses due to extension of scheme to standard and sub-standard loans, wilful defaulters, distress settlements, relieving of guarantors and failure to sell assets at the highest offer. CAG observed that the OTS was extended to 143 standard and sub-standard assets contrary to the guidelines resulting in a loss of Rs 6.62 crore.

Similarly, APSFC had settled 393 loan accounts for Rs 60.66 crore against availability of securities worth Rs 145.77 crore and collectable amount of Rs 70.46 crore as per guidelines. Failure to sell the units for highest offer had also led to distress settlement resulting in a loss of Rs 1.78 crore.

This apart, the report stated, a loan of Rs 3.01 crore was sanctioned in one branch to the daughter of OTS beneficiary in another branch and OTS amount of Rs 1.56 crore was adjusted from the loan.

In 31 cases pertaining to 10 branches, the corporation had relieved 59 out of 126 guarantors by collecting Rs 1.42 crore as against the outstanding amount of Rs 39.81 crore without discharging the total liability.

With regard to APSCSC, the CAG report stated that even though funds were available in personal deposit account, cash credit facility was utilised leading to payment of interest. Failure of the corporation in claiming refund from Food Corporation of India towards differential cost of rice due to roll back of prices, failure to lift stocks during pipeline period and payment of revised prices for stocks lifted resulted in loss of Rs 3.69 crore.

As far as the APSHC was concerned, CAG observed that funds were borrowed on the basis of sanction of the housing programme without considering availability of unutilised funds out of earlier loans. This rendered mobilisation of funds in excess of actual requirement by Rs 104.08 crore over a period of five years up to 2002-03.

It also stated that funds of Rs 452.23 crore transferred by head office of the corporation to its district units remained unreconciled at the end of 2002-03. None of the housing schemes were completed in the year in which they were sanctioned. Out of 16.55 lakh houses taken up for construction during 1998-2003, 3.86 lakh houses remained incomplete.

This apart, funds aggregating Rs 90 lakh were invested in cooperative banks not notified by the State Government. Similarly, four district offices invested funds aggregating Rs 22.71 crore in fixed deposits without the approval of the competent authority. Whereabouts of fixed deposit receipts aggregating Rs 23 lakh invested during 1991-97 by one district office were not known till date.

There was also a difference of Rs 33.06 crore between loan collections reported by district offices and actually remitted to head office. This was due to retention of collections by field staff and retention of funds by collecting banks.

Absence of adequate internal control mechanism and proper monitoring activities led to mis-utilisation and misappropriation of funds and materials, defective construction of houses and retention of loan recoveries amounting to Rs 11.74 crore.

More Stories on : Non-Performing Assets | PSU | Andhra Pradesh

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