There was a shortfall of 61 per cent and 39 per cent respectively during 2013-14 and 2014-15, against the internal audit target fixed by the Department of Science & Technology (DST) for the 28 autonomous bodies under it, said a report by the CAG on Friday.

Terming the DST’s plea that internal audit of all units could not be done due to manpower shortage as “unacceptable”, the report urged it to evolve a mechanism to conduct peer reviews and all such bodies and strengthen its internal audit system.

The DST has assured the CAG that peer review of 16 research institutes will be completed within this financial year and of the remaining eight, in the next financial year.

Non-compliance of GFR

Noting non-compliance of the General Financial Rules (GFR) governing Central grants, the report said it had scrutinised 443 sanction orders worth ₹1,386.14 crore furnished by 11 autonomous bodies, and found that none had details, such as the nature of the expenditure – recurring or non-recurring.

The CAG also observed that the formation of an autonomous body in Hyderabad was “irregular” and not in line with rule 208 of the GFR, which states that no new autonomous institution should be created by ministries or departments, without Cabinet approval. The International Advanced Research Centre for Powder Metallurgy in Hyderabad was released funds of ₹241.04 crore during 2009-2014. The project, envisaged as a joint venture between India and the erstwhile USSR, had been approved by the Cabinet in May 1990.

However, the Department formed a society ‘Advanced Research Centre for Powder Metallurgy’ through a Memorandum of Association signed by seven members, and registered in October 1990 under the Andhra Pradesh (Telangana area) Public Societies Registration Act.

The society named ‘Indo-Soviet Advanced Research Centre for Powder Metallurgy’ on November 7, 1991, was later renamed ‘International Advanced Research Centre for Powder Metallurgy and New Materials’ (ARCI) on March 17, 1994 – in view of the dissolution of the USSR. It then suggested that the Department may obtain ex-post facto approval of the Cabinet for establishment of International Advanced Research Centre for Powder Metallurgy and New Materials, Hyderabad as an autonomous body.

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