CAG finds ₹383 crore uncollected from illegal mining and medicine subsidies in Rajasthan

This audit examined the compliance of 30 departments of the Government of Rajasthan, specifically focusing on the Mines and Geology Department, Animal Husbandry Department, and Industries and Commerce Department, for the period ended March 2024.

Who it concerns: Government of Rajasthan (Mines and Geology Department, Animal Husbandry Department, Industries and Commerce Department)

What the auditor found

• Non-recovery of ₹192.72 crore for unauthorized mineral excavation without Consent to Operate (CTO) or exceeding permitted quantities.
• Non-recovery of ₹191.10 crore related to the dispatch of 23.83 lakh Metric Ton of minerals via misused e-rawannas and illegal mining in gap areas.
• Non-recovery of ₹6.97 crore in processing fees for 69.71 lakh e-rawannas/e-transit passes generated between January 2022 and March 2023.
• Non-recovery of ₹14.33 lakh in premium amounts for mining leases on Khatedari land due to lack of monitoring.
• Non-recovery of ₹2.36 crore due to unauthorized dispatch of 42,185.77 MT of minerals without generating e-rawannas.
• Non-levy and non-recovery of ₹21.00 lakh National Green Tribunal compound fee for illegal transportation of mineral Bajri.
• Non-recovery of ₹15.73 lakh in royalty and DMFT contributions from a brick earth permit holder.
• Short demand of late fees amounting to ₹24.90 lakh for mining lease extensions.
• Non-recovery of ₹52.63 crore (comprising ₹33.22 crore and ₹19.41 crore demands) for excavation of 11.74 lakh MT of minerals without approved Mining Plans or in excess of permitted quantities.
• Irregular payment of ₹61.25 lakh capital subsidy to two enterprises producing industrial oxygen instead of medical oxygen.
• Deficiencies in the Integrated Online Medicine Management Software (IOMMS), including lack of IT infrastructure, weak security controls, and failure to enforce First-Expiry-First-Out (FEFO) protocols.
• Outstanding inspection reports involving ₹67,417.00 crore across 5,486 reports as of September 2024.

Also in the document

• CAG reported that mining officials failed to recover over ₹192 crore for unauthorized excavation and another ₹191 crore for illegal mining and misuse of transit passes.
• CAG found that the Animal Husbandry Department's medicine management software, costing over ₹42 lakh to develop and maintain, suffered from critical security gaps, lack of internet connectivity at units, and failure to prevent the distribution of expired or substandard medicines.
• CAG noted that ₹61.25 lakh in subsidies was paid to companies producing industrial oxygen under a scheme intended for medical oxygen manufacturers.