Report 5 of 2025: Report of Comptroller and Auditor General of India:Compliance Audit Report - Revenue and Public Sector Undertakings, UT of Jammu and Kashmir for period ended March 2022

What did the audit examine?

This audit examined the compliance of revenue receipts and public sector undertakings (PSUs) in the Union Territory of Jammu and Kashmir for the period ended March 2022.

Who / what it concerns

Government of Union Territory of Jammu and Kashmir

What the auditor found

• Delay in issuing Standard Operating Procedure (SOP) for GST return scrutiny for over five years
• Minimal scrutiny of GST returns leading to potential revenue loss
• Non-filing of returns by taxpayers and non-payment of interest/late fees
• 341 days delay in crediting `85.75 crore to beneficiaries under Interest Subvention Scheme
• Ineligible interest subvention of `59.21 crore to 39,136 accounts
• Interest subvention of `1.91 lakh to 10 KCC accounts (not covered by scheme)
• Interest subvention of `1.07 lakh to 22 personal segment accounts
• Doubtful recovery of `104.51 crore due to inadequate collateral for loans
• Wasteful expenditure of `82.18 lakh in creating Jammu and Kashmir Asset Reconstruction Limited
• Loss of interest of `2.65 crore due to parking surplus funds by Jammu and Kashmir IT Infrastructure Development Private Limited
• Avoidable interest payment of `6.88 crore by Jammu and Kashmir State Power Development Corporation
• Avoidable interest payment of `0.32 crore by Jammu and Kashmir Projects Construction Corporation

Points worth noting

• Doubtful recovery of `104.51 crore
• Ineligible interest subvention of `59.21 crore
• Avoidable interest payment of `6.88 crore