NORTH DELHI MUNICIPAL CORPORATION

INTERNAL AUDIT DEPARTMENT

ZONAL AUDIT PARTY. S.P.ZONE.

No. F…………/IAD/ZAP/SPZ/2016/ Dated:………

Sub:- Physical verification and special audit to review the collection of revenue on
accounts of Dy. A & C (S.P.ZONE) for the period 14.5.2014 to till date.

Please find the enclosed Audit Inspection report on the subject cited above with the
request to furnish the para- wise reply as pointed out in the report, within four weeks of its receipt.

ACCOUNTS OFFICER
Z.A.P. S.P. ZONE

Dy. A & C (S.P.ZONE)

 NORTH DELHI MUNICIPAL CORPORATION
INTERNAL AUDIT DEPARTMENT
ZONAL AUDIT PARTY. S.P.ZONE.

No. F…………/IAD/ZAP/SPZ/2016/ Dated:………

Sub:- Physical verification and special audit to review the collection of revenue on
accounts of Dy. A & C (S.P.ZONE) for the period 14.5.2014 to till date.

Please find the enclosed Audit Inspection report on the subject cited above with the
request to furnish the para- wise reply as pointed out in the report, within four weeks of its receipt.

ACCOUNTS OFFICER
Z.A.P. S.P. ZONE

Dy. A & C (S.P.ZONE)

 NORTH DELHI MUNICIPAL CORPORATION
INTERNAL AUDIT DEPARTMENT
ZONAL AUDIT PARTY. SP ZONE.

No.________/IAD/SPZ/2016 Dated:________________

Sub:- Physical verification and special audit to review the collection of revenue on
accounts of Dy. A & C (S.P.ZONE) for the period 14.5.2014 to till date.

INTRODUCTION :-

The I.A.R on the accounts of A&C Department, S. P. Zone was conducted by Zonal Audit
Party, S.P. Zone, comprising of Sh. Sandeep Kumar IAO, Sh. Pradeep Rawat, A.A.O., Sh. Subhas
Chand Mishra, Acctts. Asstt. & Smt. Rama LDC. The audit was conducted w. e. f. 01.04.2016 to
31.5.2016.

AIMS AND OBJECTIVES

The main aim and objective of this department is assessment of properties & collection of revenue.

HOD/H.O.S./D.D.O.’s/CASHIERS
The following Officers/officials have served as HOD/H.O.S./D.D.O.’s/CASHIERS
H.O. Deptt. Head of Office DDO Cashier
Smt.Renu K. Jagdev. Sh. Rakesh Kumar Sh. Rakesh Kumar ------
Addl. Comm.(Rev.) Dy. A & C Dy. A & C

Maintenance of record

Since most of the chain of records such as records pertains to online collection of
property taxes, action taken against dishonoured cheques etc, were either not maintained by the
department concerned or nor produced to audit, the maintenance of records by the department
concerned cannot be considered as satisfactory for the period covered by the audit.

Old audit report

There were 71 outstanding audit paras in the following reports and the department has
not made compliance of paras/reports and so no para has been settled. The Total 71 paras have
been incorporated with current audit report as part-I (old audit report).

Details of old Recovery:

S. Period of Dates of No. & date of letter under which Paras Settled Paras Report wise
No. Account Audit report was issued Outstanding of Breakup
Audited No. No. of G.P. M.V.P. of Paras
of paras
Paras settled
1. 1993-94 F.190/IAD/DAP-I/98 Dated 20.07.98 8 Nil 5 3 Rs
 to 11932436/-
09.06.97
2. 01.04.97 11.11.02 F.140/IAD/DAP-I/03 Dated 24.09.03 16 Nil 10 6 Rs
to to 1227816/-
31.03.02 28.02.03
3. 01.04.02 F.214/IAD/2005/52 Dated 16.06.05 7 Nil 4 3 Rs
to 2177906/-
31.03.04
4. 01.04.04 01.07.08 F.1389/IAD/SPZ/09/357 Dated 11 Nil 9 2 Rs
to to 31.08.09 1759889/-
01.07.08 30.09.08
5. 01.10.08 20.12.10 F.1435/IAD/SPZ/2011/596 Dated 10 Nil 8 2 Rs
to to 30.09.11 680110/-
20.12.10 11.02.11
6. 21.12.10 13.05.14 F.1491/IAD/ZAP/SPZ/2014/710 19 Nil 18 1 Rs. 80/-
to to Dated 15.07.2014
13.05.14 29.05.14
71 Nil 52 17 Rs.
Total 17778237/-

During the course of current audit, 12 audit memos including requisitions highlighting
various irregularities / short recoveries to the tune of Rs.48,08,860/-were issued. Department has
not shown any compliance of any audit memo as such no spot recovery has been made.

Details of Current Recovery (Audit period: 14.05.2014 to 31.05.2016)

Para No’s Total Recoveries Amount Recovered Balance (in Rs.)

(in Rs.)
Para No. 7 Rs. 5,97,551/- Nil Rs. 5,97,551/-
Para No. 11 Rs. 42,11,309/- Nil Rs. 42,11,309/-
Total Rs. 48,08,860/-

The internal audit report has been prepared on the basis of information furnished and record
produced by the department concerned. This party disclaims any responsibility for any
misinformation and / of non-information on the part of auditee.

ACCOUNT OFFICER
ZAP(SPZ)
Current audit :-

The following records were requisitioned for audit/scrutiny vide office letter no. IAD/ZAP-
SPZ/2016/01 dated 22.3.2016

1. Demand & Collection Registers.

2. Income Register.
3. Records of target given to the department at various stages.
4. G-8 Receipts, opening stock, number of G-8 Books received and issued during the
period, balance in stock, no. Of receipts cancelled and their treatment in records.
5. Income depositing challan- compare with G-8 and Income register.
6. Record relating to mutation of properties and depositing necessary charges.
7. Dishonoured cheque register.
8. Records pertaining to taking (-) action on dishonoured cheques.
9. Comparative statement of Income generated for the past three years.
10. Register/ records of online tax deposited and their posting in income as well as D&C
Registers.
11. Self assessment files/ records submitted by property owner.
12. Property tax returns filed during the period of audit.
13. Suit and Appeal Register.
14. Any other records pertaining to realization of revenue.

PARA NO.-1: NON-PRODUCTION OF RECORDS

Out of the above requisitioned records, items at S.No.1 (Partly), 2, 3, 4(Partly), 6(partly),
8(partly), 9 and 11 produced to audit for verification and test check audit. Rest of the records
requisitioned vide above mentioned requisition has not been produced to audit for scrutiny. Further
the records related to collection of revenue were required by audit for scrutiny vide letter no. 02
&08/IAD/ZAP/SPZ/2016 dated 05.4.2016 and 05.5.2016. Four reminders (audit memo) vide
no.IAD/ZAP/SPZ/03,05,10,&12 dated 12.4.2016, 02.5.2016, 13.5.2016 & 25.5.2016 respectively had
been issued to the deptt, for production of record but the department failed to provide complete
requisitioned record. Thus, Audit has observed that either the record is not maintained or the
production of the same appears to have been avoided, reasons to which best known to the
department. If, any irregularity/discrepancy is found in the non-produced record, at any stage, the
whole responsibility will lies on the department itself.

However, as a result of test check audit of the records whatever produced to audit, the
following discrepancies/omissions/errors etc., came to the notice of the audit.

PARA NO. 2: NON DEPOSITING/RETURNED BACK OF USED G-8 BOOKS .

On scrutiny of G-8 Book Stock Register as maintained by the department, it was noticed by
audit party that during the period of audit ie April 2014 to March 2016, G-8 Books were being issued
to the officials/officers on regular intervals without depositing of the previous issued G-8 Books and
remained in the custody of the officials/officers mentioned below in table. Moreover it has also been
noticed that in some occasions two nos. of G-8 Books were being issued instead of one G-8 books.
S. No. Date of Official/Officer to No. of Remarks
issue of to whom G-8 Book G-8 Book
G-8 Books issued issued
1 18.6.2014 Sh. KK Paul 02 It was not clear whether both
G-8 Books returned back or
not
2 25.6.2014 Sh. Mohinder Singh 02 Do
3 27.6.2014 Sh. Mohinder 02 Do
4 29.6.2014 Sh. Prahlad 02 Do
5 11.7.2014 do 01 G-8 Books not returned back
yet as per stock register.
6 12.9.2014 Sh. Virender Kr. 01 Do
7 24.9.2014 Do 01 Do
8 22.12.2014 Sh. Prahlad 01 Do
9 21.01.2015 Sh. Krishan Kr. 01 Do
10 21.01.2015 Do 01 Do
11 07.3.2015 Sh. Prahlad 01 Do
12 17.4.2015 Sh. Krishan Kr. 02 It was not clear whether both
G-8 Books returned back or
not
13 27.4.2015 Sh. Prahlad 01 G-8 Books not returned back
yet as per stock register.
14 12.5.2015 Sh. Mohinder Kr. 01 Do
15 19.5.2015 Sh. Prahlad 01 Do
16 29.5.2015 Sh. Mohinder Kr. 01 Do
17 05.6.2015 Do 01 Do
18 05.6.2015 Sh. Virender Kr. 01 Do
19 08.6.2015 Sh. Krishan Kr. 01 Do
20 09.6.2015 Sh. Mohinder Kr. 01 Do
21 12.6.2015 Sh. Virender Kr. 02 G-8 Books not returned back
yet as per stock register.
22 12.6.2015 Sh. Mohinder Singh 02 Do
23 12.6.2015 Sh. Krishan Kr. 02 Do
24 17.6.2015 Sh. Prahlad. 02 Do
25 19.6.2015 Do 01 Do
26 19.6.2015 Sh. Krishan Kr. 02 Do
27 22.6.2015 Sh. Mohinder Singh 02 Do
28 24.6.2015 Sh. Satinder Kr. 02 It was not clear whether both
G-8 Books returned back or
not
29 25.6.2015 Sh. Prahlad 02 G-8 Books not returned back
yet as per stock register.
30 27.6.2015 Sh. Mohinder 01 Do
31 28.6.2015 Sh. Prahlad 01 Do
32 29.6.2015 Do 01 Do
33 29.6.2015 Sh. Mohinder Singh 01 Do
34 30.6.2015 Smt. Malti HC 01 Do
35 02.7.2015 Sh. Prahlad 01 Do
36 02.7.2015 Sh. Mohinder Singh 01 Do
 37 22.7.2015 Do 01 Do
38 23.7.2015 Smt. Malti HC 02 Do
39 07.8.2015 Sh. Krishan Kr. 01 Do
40 24.8.2015 Sh. Mohinder HC 01 Do
41 26.8.2015 Sh. Anil Dhall 01 Do
42 02.9.2015 Sh. Mohinder Kr. 01 Do
43 30.9.2015 Sh. Krishan Kr. 01 Do
44 08.10.2015 Sh. Prahlad 01 Do
45 11.12.2015 Sh. Krishan Kr. 01 Do
46 18.12.2015 Sh. Mohinder Kr. 01 Do
47 29.12.2015 Do 01 Do
48 04.02.2016 Sh. Krishan Kr. 01 Do
49 19.02.2016 Sh. Anil Dhall 01 Do
50 01.3.2016 Sh. Mohinder Kr. 01 Do
51 02.3.2016 Sh. Prahlad 01 Do
52 16.3.2016 Smt. Malti HC 01 Do
53 18.3.2016 Sh. Mohinder Kr. 01 Do
54 19.3.2016 Sh. Prahlad 01 Do
55 21.3.2016 Sh. Anil Dhall 01 Do
56 22.3.2016 Sh. Krishan Kr. 01 Do
57 29.3.2016 Sh. Virender Kr. 01 Do

Reason for above said irregularities in issuing the G-8 Book be clarified to audit.

An audit memo vide no. 04/IAD/ZAP/SPZ/2016 dated 26.4.2016 issued to

department in this regard but no reply to audit was received from department till date.

PARA NO. 3: VARIOUS BANK A/C RELATED TO PROPERTY TAX/SPZ IN OPERATION

INSTEAD OF ONE BANK A/C.

As per list of Bank a/c numbers in operation in North MCD as provided by Treasures of Mpl.
Treasury /SP Zone, it has been noticed by audit that there is 10 numbers of Bank a/c in operation
related to collection of cash / cheques realized through Property Tax Department/S P Zone. Bank
transaction statement of these 10 a/c numbers was requisition from the department vides letter no.
08/ZAP/IAD/SPZ/2016 dated 05.5.2016. In reply department requested to collect the same from
Accounts Officer/Treasury/SPZ as A&C Department/SPZ is being deposited their cheques and cash
through challan only one H/A i.e. 15-0102 to treasury/SPZ. The Bank transaction statement of the
following Bank a/c numbers were required by the audit:-

1. Comm. North DMC SPZ ZT P.Tax Cheque Col. ---000705040676

2. Comm. North DMC SPZ CSB P.Tax Cheque Col. ---000705040680
3. Comm. North DMC SPZ ZT P.Tax Cash Col. ---000705040754
4. Comm. North DMC SPZ CSB P.Tax Cash Col. ---000705040756
5. Comm. North DMC SPZ ZT P. Tax Cheque PL. ---000705040677
6. Comm. North DMC SPZ CSB P.Tax Cheque Col. ---000705040679
7. Comm. North DMC Main SPZ ZN P.Tax Cheque. ---000705040631
8. Comm. North DMC SPZ ZT P.Tax Cash PL. ---000705040755
9. Comm. North DMC SPZ CSB P.Tax Cash PL. ---000705040757
10. Comm. North DMC Main SPZ ZN P.Tax Cash. ---000705040758
 Out of above said 10 Bank a/c audit party received only 03 bank transaction statement for
the year 2015-16 through the personal efforts of audit and through mail. 04 number of a/c ‘s bank
transaction statement also received through HQ. Details of these Bank a/c number is as below:-

1. A/C no. 000705040725 (Current A/C) ICICI Bank.

In the name of M/S Comm. North DMC CSB Misc CHQ PL
Address: NDMC office of DCA (HQ), 14 th floor, Civic Centre, JLNehru Marg, N.Delhi.

In this A/C amount deposited mentioning the particulars CSB Misc CHQ Col and withdrawal
made on the same date of deposited amount mentioning the particulars CSB Misc CHQ PL resulting
balance nil.

2. A/C no. 000705040726 (Current A/C) ICICI Bank.

In the name of M/S Comm. North DMC Main SPZ ZN Misc CHQ
Address: NDMC office of DCA (HQ), 14 th floor, Civic Centre, JLNehru Marg, N.Delhi.

In this A/C amount deposited mentioning the particulars SI FR SPZ ZT Misc CHQ PL and
withdrawal made on the same date of deposited amount mentioning the particulars SI FR Main SPZ
ZN Misc CHQ, resulting balance nil.

3. A/C no. 000705040723 (Current A/C) ICICI Bank.

In the name of M/S Comm. North DMC SPZ ZT Misc CHQ PL
Address: NDMC office of DCA (HQ), 14 th floor, Civic Centre, JLNehru Marg, N.Delhi.

In this A/C amount deposited mentioning the particulars SI FR SPZ Misc CHQ Col. and
withdrawal made on the same date of deposited amount mentioning the particulars SI FR SPZ ZT
Misc CHQ PL, resulting balance nil.

4. A/C no. 000705040754 (Current A/C) ICICI Bank.

In the name of M/S Comm. North DMC SPZ ZT P. Tax Cash Col.
Address: NDMC office of DCA (HQ), 14 th floor, Civic Centre, JL Nehru Marg, N.Delhi.

In this A/C amount deposited mentioning the particulars SPZ Zonal Treasury MCD and
withdrawal made on the same date of deposited amount mentioning the particulars SI FR SPZ ZT P.
Tax Cash Col, resulting balance nil.

5. A/C no. 000705040677 (Current A/C) ICICI Bank.

In the name of M/S Comm. North DMC SPZ ZT P. Tax CHQ PL.
Address: NDMC office of DCA (HQ), 14 th floor, Civic Centre, JLNehru Marg, N.Delhi.

In this A/C amount deposited mentioning the particulars SI FR SPZ ZT P.Tax CHQ Col, and
withdrawal made on the same date of deposited amount mentioning the particulars SI FR SPZ ZT P.
Tax CHQ PL, resulting balance nil.

6. A/C no. 000705040531 (Current A/C) ICICI Bank.

In the name of M/S Comm. North DMC HQ P. Tax Cash Pool A/C
Address: NDMC office of DCA (HQ), 14 th floor, Civic Centre, JLNehru Marg, N.Delhi.
In this A/C amount deposited mentioning the particulars Zone name (NDMC) SI FR Main ZN P.Tax
Cash, and withdrawal made mentioning the particulars RTGS-ICICR-2015040600034977/Comm.
North DMC. In this A/C balance as on 31.3.2016 was Rs. 12,69,145/-. Deposit made in this A/C
pertains to SPZ has been tallied with Bank transaction statement & Income cash book of treasury.

7. A/C no. 000705040722 (Current A/C) ICICI Bank.

In the name of M/S Comm. North DMC SPZ ZT Misc CHQ Col.
Address: NDMC office of DCA (HQ), 14 th floor, Civic Centre, J L Nehru Marg, N. Delhi.

In this A/C amount deposited mentioning the particulars with details of cheque number with
date, and withdrawal made on the same date of deposited amount mentioning the particulars SI FR
SPZ ZT Misc CHQ Col. In this A/C balance as on 31.3.2016 was Rs.26 , 738/-. Deposit made in this
A/C pertains to SPZ could not be possible to tally with Bank transaction statement but cheque
realized through P. Tax/ SPZ dully tallied collection made in G-8 Books with Income cash book of
treasury.

The nomination of all these A/C’s are not registered as per Bank Transaction Statement.

Out of the 10 a/c numbers Bank transaction statement as required by audits only three
numbers of bank transaction statement received by audit. Rest of the statements has not been
provided by the department or treasury.

Department may clarify whether rest of the bank a/c numbers shown above for which no
statement provided by the department or treasury are still in operation or not. If in operation the
name and address of the controlling authority be mentioned and provided to audit at the earliest.

Para No. 04: Irregularities in maintenance of G-8 Stock Register and G-8 Books

During the course of audit, while scrutinize the G-8 stock register it has been observed
that the department has not followed the instructions issued from the office of Commissioner and
CA-cum-FA with regard to issue of G-8 Books and maintenance of G-8 Books stock register. The
following irregularities have been noticed:-

1) The department had not produced the copies of requisitions vide which the department received
G-8 Books from Head Quarter. In the absence of requisite record, the actual numbers of G-8
Books issued by the HQ to the office of Dy. A&C. S.P. Zone could not be ascertained.
2) G-8 no CH9901 to 10000 issued on 12.5.2015 without any receipt entry in Stock Book.
3) G-8 Books have been issued to the officials of A&C Department of the Zone without obtaining
the requisition duly approved by the head of office, which is irregular. There were so many
cases where more than one G-8 Book have been issued at a time to one particular official and in
some cases more than two G-8 Books have been issued to one particular The G-8 Books should
be issued to the officials against proper requisition duly approved by the head of the office. It
should be insured that the official does not have more than one G-8 Book at a time. In case if it
is necessary in the interest of office that a second book may be issued to a particular official
before the old one is fully utilized/exhausted and should be insured that not more than 25
receipts in the old book remain unused.
4) The G-8 Book should be returned to the record office use, by the official concerned to whom G-8
Book issued. Blank /Fresh G-8 Book should be issued only after the return of the filled
up/utilized book. But it has been observed that as per stock register. List of such G-8 Books
along with the name of the officials is enclosed in this report in para. As these G-8 Books
related to collection of property tax and non submission of utilized G-8 Books to the department
 may lead to misappropriation of municipal fund. It has also come to the notice of audit that in
some of the cases officials to whom G-8 Books were issued and who have not returned the G-
8Books to the record have been transferred from the A&C department.
5) The issuing officials at the time of taking back the utilized G-8 Books from the officials to whom
these were issued should personally check that no office copy is missing and original along with
all copies of the cancelled receipts are available in the utilized G-8 Books. A certificate to that
effect be recorded on the reverse of the returned G-8 receipt book. The returned utilized
receipts books should be kept in safe custody by the issuing official. No such procedure as
mentioned is being followed by the department.
6) The competent authority should check the G-8 stock register every month and record a
certificate to that effect but no such exercise has been found carried out by the officer
concerned during the audit period.

Para No. 05:-Improper maintenance of challans.

During the course of scrutiny of G-8 receipts with challan so produced by the department, it has
been observed that the challans were not maintained serial wise/ month wise etc, and it was very
difficult to audit to verify/ tally these challans with the collection through G-8 receipts. Audit party
requested several time regarding produce the challan to audit in serial wise/ month wise so it could
easy to tally/verify with G-8 receipts but nothing has been done in this regard.

In case of any irregularities/ discrepancies found in future in any of the challan which could not
verified with G-8 Books, by any agency at any time, then all the responsibilities shall lies on the
shoulders of the concerned officers/officials.
Department may clarify the reason for improper maintenance of the challan/challan files to audit
at earliest.

Para No. 06:- Improper maintenance of Demand & Collection Register.

On going through the scrutiny/Test check of the Demand & Collection Register so produced to
audit, the following observations come to the notice of audit:-

1. The details given by the Tax Payer in the Self Assessment Property Tax form has not been noted
down in the register. Only RV/AV column were filled up in some cases in the register.
2. As per list of 168 dishonoured cheques related to property tax provided to audit, only 38
dishonoured cheques entered in the D&C register in which minus action has been taken by the
department but no minus action taken and entries made in the D&C register for reference for
rest of dishonoured cheques. Audit had issued an Audit Memo vide no. 10/IAD/ZAP/SPZ/2016
dated 13.5.2016 to clarify the reason for non production/ minus action taken against the
defaulters but no reply has been made by the department in this regard.
3. It seems that Demand & Collection Register was not prepared/ maintained according owners flat
number but entries were made vide premises/plot number only. For example if
premises/building have three or four story and each flats are in the name of different owners
but shown entered in the register as premises/plot number and provided only a single page for
entry of tax pay/payable by different owners of the said premises .
4. In most of the cases arrears due from the tax payer/ house owners (up to 2003-04) as shown in
the register has not been recovered by the department till date. More over arrear w.e.f. 2003-04
to till date also has not been recovered by the department resulting heavy revenue loss to
Corporation.
5. No separate/new register prepared after every 03 years and entries shown since 2004-05 to
2015-16 in the registers so produced to audit.
 Reason for the above said irregularities may be clarified to audit.

Para No. 07 :- Municipal Loss amounting to Rs. 5,97,551/- due to short deposit

During the course of audit while checking/reviewing the G-8 books and challans, so
produced to audit, it is noticed that in some G-8s, amount in short deposited in Municipal Treasury
instead of actual amount received through G-8 in the shape of cheques and cash. Details of such
short deposit are as under:-

Sl. G-8 Nos. with date Amount Actual Short

No. Deposit amount
received
1 CB51774 to 779 dt.31.7.2014 1180 1186 06
2 BJ088328 to 359 dt. 22 to 26.5.2014 30488 30638 150
3 BJ088388 to 397 dt.04.6.2014 12855 12856 01
4 CB52359 to 387 dt. 12 to 13.6.2014 35544 36044 500
5 CB52135 to 173 dt. 27.5.2014 48081 48111 30
6 BJ088788 to 797 dt. 26 to 27.5.2014 5568 5578 10
7 BD090701 to 790 dt. 27.6.2014 730395 730795 400
8 BJ088442 to 455 dt. 7to 8.5.2014 15072 15102 30
9 BJ088493 to 500 dt. 16to 26.5.2014 5204 6030 828
10 CB53701 to 732 dt. 26.6.2014 46096 46116 20
11 CD57903 to 912 dt. 24.12.2014 91873 92873 1000
12 56643 to 650 dt. 3 to11.11.2014 49777 349777 3 lac
13 CC84333 to 400 dt.26.6.2014 89107 89945 838
14 CJ18831 to 860 dt. 25.6.2015 35081 35781 700
15 CH10407 to 10430 dt. 28to29.5.2015 31518 31528 10
16 CJ20430 to 500 dt. 30.6.2015 89313 89720 407
17 CJ61301 to 400 dt. 30.6.2015 9036902 9045305 8403
18 CG17809 to 826 dt. 22to27.4.2015 21708 21713 05
19 CI29750 to 790 dt. 16to17.6.2015 363087 355671 7416
20 CJ18133 to 18174 dt. 19to22.6.2015 119456 125454 5998
21 CK63394 to 396 dt. 30to31.3.2016 8117 8217 100
22 60911 to 923 dt. 23.3.2016 88531 89531 1000
23 21146 to 185 dt. 19.6.2015 708890 778890 70000
24 CJ19501 to 540 dt. 27.6.2015 271898 270898 1000
25 CJ63652 to 656 dt. 30.9.2015 60127 60167 40
26 CJ63933 to 939 dt. 9.11.2015 101160 102750 1590
27 20801 to 850 dt. 11.6.2015 58719 58819 100
28 19901 to 19919 dt. 26.6.2015 32733 32773 40
29 CJ62734 to 745 dt. 25to31.7.2015 134322 147850 13528
30 CJ63025 to 027 dt. 3to5.8.2015 264554 274176 9622
31 19701 to 19781 5,42,645 7,06,704 1,64,059
32 61101 to 61200 960013 969613 9600
33 84976 to 84982 149800 149900 100

Total- 5,97,551
 Hence, department is requested to check such case and report to audit the reasons for
short deposit in Municipal Treasury and also recover the same from the concerned officials without
any delay.

Para No.08:- Excess amount of Rs. 86,841/- deposited in Municipal Treasury

During the course of audit, while checking/reviewing the G-8 books , so produced to audit, it
has been found that the department has deposited the excess amount in Municipal Treasury in lieu
of the amount as received through cheques or cash from the Tax payers. The detail is as below:-
Sl. G-8 Nos. with date Actual amount Amount Excess
No. received deposited
1. BJ088231 to 248 dt. 22.4.2014 23612 23582 30
2. CD25801 to 900 dt. 29to30.6.2014 1017539 1017489 50
3. CB56801 to 803 dt. 28.7.2014 15871 15671 200
4. 54633 to 675 dt. 25.6.2014 56090 55590 500
5. 57179 to 57183 dt 6.02.2015 4954 4959 05
6. 57219 to 57222 dt. 26.9.2014 6532 6522 10
7. CI20701 to 708 dt. 10.6.2015 112658 112558 100
8. CJ61501 to 569 dt. 30to02.7.2015 1559953 1513344 46609
9. CK63117 to 125 dt. 5to11.01.2016 24666 24306 360
10. CJ61870 to 877 dt. 21to24.8.2015 11063 11006 57
11. CJ61401 to 487 dt. 30to01.7.2015 122391 122121 270
12. CJ63569 to 572 dt. 28to30.12.2015 9442 5336 4106
13. 21601 to 21685 dt. 22.6.2015 222922 220948 1914
14. CJ63657 to 663 dt. 6.10.2015 110328 110228 100
15. CJ63940 dt.16.11.2015 7890 6300 1590
16. CJ63969 to 63972 dt. 22.12.2015 413418 113418 30000
17. CI21301 to 21400 dt. 23.6.2015 303997 303897 100
18. 22852 to 893 dt. 01.7.2015 628976 628906 70
19. 19601 to 628 dt. 27.6.2015 42698 42598 100
20. 10843 to 876n dt. 8.6.2015 43975 43935 40
21. CJ63025 to 027 dt. 14to16.9.2015 662 632 30
22. 20101 to 20200 1194446 1194946 500
23 10101 to 10121 dt. 19.5.2015 327573 327673 100
Total- 86,841

Department may explain the reasons for depositing of excess in Municipal Treasury.

Para No. 9:-Non recovery of Property Tax Arrear.

During the test check audit of Demand & Collection Register so produced to audit it has been
noticed that a huge amount of property tax was lying to be recovered from property owners by the
department. It was also observed that department has not taken appropriate action to recover such
arrear of property tax as mentioned in Demand & Collection Registers of various wards. The matter
was also discussed with superior authority of the department to initiate necessary steps to recover
the arrears on urgent basis to increase the revenue of the North MCD. The department is requested
to intimate that what action/measures to recover the arrear has been taken by the department.
Para No. 10 :- Irregularities noticed in various G-8 Books

. While scrutiny of G-8 books the following irregularities were noticed by audit:-
1) In some of the G-8 total of collection comes short/excess as compare to amount deposited
with treasury.
2) In some cases delay in deposit of amount in to treasury found in which no reason for delay
mentioned by the competent authority.
3) G-8 no. CJ20479 dated 30.6.2015 amounting Rs. 640/-, the second/office copy found filled
up using the pen.
4) The collections of Rs. 8,659/- realized vide G-8 no. CD57988 dated 02.3.2015 deposited in
treasury on dated 10.3.2015 while collections of Rs. 57,930/- realized vide G-8 no. CD57989
dated 3.3.2015 deposited in treasury on 4.3.2015 needs clarification.
5) On the back side of G-8 receipt no. 17800 the collection certified for the G-8 no. 19783 to
19800 and not included G-8 receipt no. 19782.
6) Amount of G-8 receipt no. 19701 to 19781 received by treasury cashier on 28.6.2015 while
G-8 receipt no. 19782 issued on 27.6.2015 needs clarification.
7) In G-8 receipt no. 17901 it was noticed that pink copy overwritten and yellow copy found
carboned of pink copy.
8) In the collection of Rs. 5331/- realized vide G-8 receipt no. 10701 to 10704, only cashier
stamp found available without having amount and date on it.

Department may explain the reasons for such type of irregularities, as it can cause of an
embezzlement at any stage. Further furnish a certificate that all the amounts received against the
above said G-8s have been deposited in mpl. Treasury.

Para No. 11:- Minus action not taken against Dishonour cheque in D&C Register(Loss Rs.
42,11,309/-)

During the checking of Dishonour cheque statement for the period 30.9.2014 to 31.3.2016 &
D&C register, it has come to the notice that some cheques were dishonoured due to different
reasons but not realized till date. As per list of dishonoured cheques there was 168 cheques
dishonoured during the period in which minus action taken only on 38 number of cheques as
verified with D&C Register. The records related to action taken against dishonoured cheques
requisitioned by audit vide letter no. 07& 10/IAD/ZAP/SPZ/2016 dated 05.05.2016 and 13.5.2016
respectively but complete record has not been provided by the department. The amount which has
to be recovered against dishonour cheques comes to Rs. 42, 11,309/-.
A Municipal loss of Rs. 42,11,309/- (Excluding penalty, waiver of rebate and other charges)
noticed for the period of audit. Deptt, is requested to intimate that further action has been taken to
recover the above said outstanding amount. Reasons for not taking action against dishonoured
cheques (Defaulters) and non-recovery of Municipal revenue including penalty & other charges may
please explain to audit.
Dy. A&C/SPZ is also requested to review all such type of cases and effect necessary recovery
action under intimation to audit.

Para No. 12: No check on calculation of taxes in property tax return form.

During the scrutiny of Property Tax Return on test check basis, self assessed by the property
owners it come to the notice of audit that PTR under assessed by the owners and not corrected by
the official/ officers of the department. Such of the under assessed PTR are mentioned below for
references:-
 1. Property no. A-94 (Part), Shastri Nagar, SP Zone. Sh. Nirmal Kumar. Category (F) residential.
Amount received by department Correct Amount
Year Property Tax Interest Total Property Tax Interest Total
2006-10 11,500 10,350 21,850 11,968 10,770 22,738
2010-14 8,768 3,682 12,450 11,968 5,026 16,994
2014-15 2,192 258 2,450 2,992 359 3,351
Total:- 36,750 43,083
Short collection made by department Rs. 6,333/-
2. Property no. E-4/7, Jhandewalan Extension, SP Zone. Sh. Bhagwant Singh.
Amount received by department Correct Amount
Year Property Tax
2015-16 1,93,696 1,97,920
Rebate-15% 29,054 29,688
Total:- 1,64,641 1,68,232
Short collection made by department Rs. 3,591/-
3. Property No. E-2/10/1 Gali no. 1, Shastri Nagar, Smt Saroj Rani, SP Zone. Sh. Nirmal Kumar.
Category (F) residential.
Amount received by department Correct Amount
Year Property Tax Interest Total Property Tax Interest Total

2003-04 3,627 4,896 8,523 3,627 4,896 8,523

2004-10 26,256 26,789 53,045 27,162 27,705 54,867
2010-13 13,581 6,519 20,100 13,581 6,519 20,100
Total:- 81,668 83,490
Short collection made by department Rs. 1,822/-

The above mentioned table regarding to calculate and deposit of less amount due to
incorrect calculation of property taxes are illustrative and not exhaustive and other cases of similar
nature cannot be denied. Competent authority is requested to direct the concerned to check all such
cases on priority basis and efforts be made to collect the difference amount from the property tax
payers under intimation to audit.

Para No: 13. Non achievement of Collection of Taxes upto the target.

As per letter no. Tax/A&C(HQ)/Target/2015/514 dated 12.6.2015 target of collection of

property tax fixed Rs. 35 crore for SP Zone which has been increased previous years Rs. 28 crore.
The actual collection made by the department for the year 2014-15 was Rs. 17.61 crore and for the
year 2015-16 was Rs. 20.89crore approx. The collection in 2015-16 increased as compare to
previous year 2014-15 but on the other hand the collection for the year were much lesser than
target fixed.

As required by audit , department had produced the collection for last 03 years vide their
letter no. 119/Dy.A&C/SPZ/2016 dated 28.4.2016. Details of the collection of last 03 year are as
under:-
2013-14 Manual-Rs. 12,25,59,851/-
Online –Rs. 6,22,46,842/-
Total Rs. 18,48,06,693/-
2014-15 Manual-Rs. 9,37,05873/-
Online –Rs. 8,16,10,676/-
Total Rs. 17,53,16,549/-
2015-16 Manual-Rs. 12,14,50,005/-
 Online –Rs. 8,74,09,935/-
Total Rs. 20,88,59,940/-

As per table shown above it is clear that collection has been increased as
compare to previous year but achieve much lesser than target fixed for both years needs
to pay attention in this regard.

Para No. 14:- General observations

1) Overwriting and cuttings in official record be avoided in future.

2) Paging certificate must be recorded on the front page of each register.
3) While scrutiny of G-8 books so produced by the department, it has been noticed that G-8
receipts found cancelled without getting signature of competent authority.
4) Signature of the competent authority on the cancelled G-8 receipts (CE2851-52 &53 dated
10.3.2015, CD57135 dated 12.11.2014) were not obtained by the department.

ACCOUNTS OFFICER
ZAP (S.P. ZONE)