CAG finds ₹260.24 crore tax shortfall in Haryana revenue sector

It also covered a subject-specific audit on the implementation of the Smart City Mission in Haryana.

Who it concerns: Government of Haryana (including Town and Country Planning, Forest, HR, Finance, Public Works, and Women and Child Development Departments; Revenue Sector; and State Public Sector Enterprises)

What the auditor found

• Loss of ₹ 1.97 crore due to violation of policy guidelines for oustees by Haryana Shehri Vikas Pradhikaran.
• Shortfall of ₹ 22.63 crore in the State Compensatory Afforestation Fund due to incorrect demand of Net Present Value by the Forest Department.
• Avoidable financial burden of ₹ 8.29 crore on the State Exchequer due to delayed EPF contributions by 191 indenting entities.
• Unfruitful expenditure of ₹ 25.86 crore on four incomplete works in Kurukshetra, Rewari, Kaithal, and Panipat by the Public Works Department.
• Excess payment of insurance premium of ₹ 12.66 crore to LIC by the Women and Child Development Department due to lack of beneficiary list maintenance.
• Under-assessment/short levy of tax/loss of revenue aggregating to ₹ 260.24 crore in 2,516 cases across Sales Tax, Stamp Duty, and Registration fee.
• Short levy of stamp duty and registration fee of ₹ 23.37 crore due to misclassification of collaboration agreements.
• Shortfall of ₹ 17.82 crore in stamp duty collection due to undervaluation of immovable property (residential/commercial land treated as agricultural).
• Loss of stamp duty of ₹ 13.99 crore due to non-registration of collaboration agreements by seven developers.

Also in the document

• CAG reported a total under-assessment/short levy of tax and loss of revenue of ₹ 260.24 crore in the revenue sector.
• CAG identified ₹ 25.86 crore in unfruitful expenditure on infrastructure projects that remained incomplete for four to five years.
• CAG noted a ₹ 22.63 crore shortfall in afforestation funds due to incorrect valuation of diverted forest land.