Minutes of discussion held on results of Thematic audit on Rev Realisation from Def Asset between Shri Ahmed, IDSE, EE, GE Sevoke Road & Shri Rakesh Ranjan, Sr Audit Officer, Defence Services EC Patna. Mess and Guest room and Non depositing of 25% of Guest Room Charges into CFI unit and Matter will be discussed consultation with stn edr and reply will be furnished thereafter. It is also mentioned th installed bulk metering at off mess and charges are already being paid @ All-in-cost matter will be discussed with Stn Car and reply be furnished thereafter. The matter regarding action taken by BSO will be discussed with the Stn Cdr and reply will be furnished thereafter. AM No. & | Subject of the AM Brief of the reply (BSO) Remarks Date AM Ol] Maintenance of Meter [In the reply it was Stated that though copies of | Since, copies of agreement of private partie Dated ‘agreement of private parties are not enclosed to this | not enclosed to this office, the information 27.10.2021 | parties without having | office, the information regarding occupation of private occupation of private parties are copy of Agreement | parties are intimated to Stn HQ Sevoke Road through | intimated to Stn HQ Sevoke Road through letter letter correspondence and asking agreement copy | correspondence and asking agreement copy from from Stn HQ sevoke road and also searching in BSO | Stn HQ sevoke road and also searching in BSO office, : office. Progress will be watched in audit. AMO | Assessment of Rent | In the reply itis stated that the matter pertains to Stn | Since the matter pertains to Stn Hq Sevoke Road Dated- | andallied charges _| Hq Sevoke Road and AO GE Sevoke Road. and AO GE Sevoke Road. Progress will be 27.10.2021 | from Pvt Parties at ‘watched in audit under intimation to MES. Sevoke Road [AM Os [Repair and it is stated that the point discussed with | Since issue maintenance of Off depositing of charges of Guest room and told that Oce/Vae report maintained by user unit and fiscussed with concerned unit consultation stn edr and reply will be furnished thereafter. It is also mentioned that MES have installed bulk metering at oflr mess ready being paid i fer will be discussed with Stn Cdr and reply will be furnished thereafter. ‘The matter regarding action taken by BSO n‘AM 04 | Non maintenance of | In the repl Dated- jer of Rentable | Shops/Me: 27.10.2021 ings and. BSO Sevoke Road and Regi recovery of rent and ined by BSO henceforth, MES have allied charges from metering at off mess and installed bulk metering at off mess and el Guest Houses. charges are already being paid in A water charges are already being paid in +r will be discussed with Stn Cdr be furnished thereafter. Information regarding total no Il be furnished thereafter. of Guest Houses, Electric Meter Installation and 1g total no of Guest Houses, Oce/Vac report in res of Guest Houses will be | Electric Meter Installation and Occ/Vac report intimated to Audit. res of Guest Houses will be int Progress will be watched ‘AM05 | Less deposition of Rev | In the reply it is stated that the matter pertain to Stn | Since, the matter pe Dated- | from the Regimental | HQ Sevoke Road. Progress will be watched in au 27.10.2021 | shops at Sevoke Road from Pvt Parties _ AM06 | Under Assessment of | In the reply itis stated that Building was carried out | Since, Building was carried out based on day to Dated- | Rent and allied | based on day to day complaints and no separate maint | day complaints and no separate maint contract is 27.10.2021 | charges from Pvt | contract is executed for these bldgs. No spel repair has | executed for these bldgs. No spel repair has been Parties at Sevoke | been cartied ot ldg and routine maint is being | carried out in bldg and ro Road carried out and It is therefore difficult to work out the | carried out and Its therefore difficult to work out exact amount of maint expenditure for these bldgs. | the exact amount of maint expenditure for these The matter regarding Land Cost Assessment & | bldgs. The matter regarding Land Cost Fixation of rent and allied charges, exclusion of Dept | Assessment & Fixation of rent and allied Charges, Maint & Security Charges pertains to Stn | charges, exclusion of Dept Charges, Maint & HQ Sevoke Rd. Security Charges pertains to Stn HQ Sevoke Rd. Progress will be watched in audit. AMO7 it of Rent | In the reply it is stated that copy BOO for the | Since, copy BOO for the assessment & fixation Dated- charges | assessment & fixation of rent and allied charges have | of rent and allied charges have been asked from 27.10.2021 | from ATM at Station | been asked from Sin Hq Sevoke Rd and matter] Stn Hq Sevoke Rd and matter regarding HQ Sevoke Road regarding assessment fixation of rent and. allied, charges, reason for exclusion of DEO from BOO and January 2021 to 31 Mar 2021 assessment fixation of rent and allied charges, reason for exclusion of DEO from BOO and variation in LF from 1* January 2021 to 31% MarIs / I9 l | 28.10.2021 | Mess and Non \ pertains to Stn Hq and AO GE. The matter wi discussed with Stn Cdr & AO GE and reply wi furnished thereafter. T pertains to Stn Hq and AO GE. The matter be discussed with Stn Cdr & AO GE and reply will be furnished thereafter. Progress w: be watched in audit ‘AM08 [Recovery of Rebate Dated- | Charges & LF from 28.10.2021 The matter pertains to Sin HQ Sevoke Rd. 1 | The matter pertains to Stn HQ Sevoke Rd, Progress will be watched in audit. | ‘AM09 | Non-Recovery of Dated- | Electricity and Water 28.10.2021 | Charges in r/o KG School at Mil Stn| Sevoke Road In the reply itis stated that the matter will be discussed ith stn cdr and reply will be furnished thereafter Since matter will be discussed with sin edr and | reply will be furnished thereafter. Progress will be watched in audit. AM10 [Assessment of Rent Dated- | and allied charges Since matter will be discussed with AO GE Sevoke Rd reply will be furnished thereafter. Progress will be watched in audi 28.10.2021 | from URC (CSD) at L Sevoke Road AMIT and Dated- | maintenance of Off ing of 25% of, Sr Audit Officer Defence Services EC Patna it is stated that the matter have been referred to Stn Ha/Concered Units for further necessary action for the same and intimated thereafter. Sinceymatter have been referred to Sin Hg/Concerned Units for further necessary action for the same and intimated thereafter. Progress be watched in audit. > " (Ariz Ahmed) IDSE, EE GE Sevoke Rdhon po [eae relly fear 23 wv [AMNo. Subject of the observation Brief of the reply (GE Sevoke Road) & Date 01 dated | Maintenance of Meter reader book of Para wise reply it was stated that though copies of agreement of priv 37.10.21 | Private parties without having copy of | enclosed to this office, the information regarding occupation of priya Parties Agreement this by Stn HQ Sevoke Road through letter correspondence and asking agreement cory == | sin HQ sevoke road and also searching in BSO office. 4 2 dated | Assessment of Rent and allied charges | 1. Pertain to St HQ Sevoke Road. 27.10.21 | from Pvt Parties at Sevoke Road 2. Pertain to Stn HQ Sevoke Road. 3. Pertain to Stn HQ Sevoke Road. 4. Pertain to Stn HQ Sevoke Road. 5. Pertain to AO GE Sevoke Road. OF dated | Repair and maintenance of Offr Mess | T. It is stated that the point discussed with Adm ‘emt for non-depositing of charges of 37.10.21 | and Guest room and Non depositing | Guest room and told that oce/vae report maintained by use unit and Matter will be discussed a gee of Guest room Charges ino | with concerned unit consultation with stn edr and reply willbe furnished thereafter. cr MES have been installed bulk metering at offr mess and elect & water charges are already being paid in All-in-cost and matter will be discussed with sin edr and reply will be furnished thereafter. 3. Matter will be discussed with stn cdr/ user unit and rply will be furnished thereafter. Gi Gated | Non “maintenance “of Register of] 1. File of rentable bldg of shops! Messes and Pvt parties is being maintained by BSO 37.101 | Remtable Building and recovery of | Sevoke Road and register (IAFW-2169) shall be maintained by this office henceforth. 2. Matter will be discussed with stn edr/ user unit. Houses. 3. MES have been installed bulk metering at offr mess and elect & water charges are already being paid in Allin-cost and matter will be discussed with stn edr and reply will be furnished thereafter. 4. Details not held and intimated thereafter Lc 5. __ Details not held and intimated thereafter 05 dated | Less deposition of Rev from the | Pertain to St HQ Sevoke Road 27.10.21 | Regimental shops at Sevoke Road from Pvt Parties 06 dated | Under Assessment of Rent and allied [T. _Pertain to Stn HQ Sevoke Road. : 77.10.21 | charges from from Pvt Parties at) 2. Pertain to Stn HQ Sevoke Road. Sevoke Road 3 2 was carried out based on day to day complaints and no separate maint contract ig executed for these bldgs. No spel reBair has been carried out in bldg and routine maint is to work out the exact amount of maint expenditure being carried out and It is therefore diffiBo Bae n fy Mo e€ OLP/2BS to Sin HQ Sevoke Road. (07 dated | Assessment of Rent and allied charges | 1 Pertain to Stn HQ Sevoke Road. - 27.10.21 | from ATM at Station HQ Sevoke|2. Pertain to Stn HQ Sevoke Road. Road 3. Pertain to Stn HQ Sevoke Road 4 Itis being ascertain from AO GE Sevoke Road. 5. Pertain to Stn HQ Sevoke Road for asking the copy of BOO for the assessment and fixation of rent and allied charges for the period 2015-16 to 2017-18. 6. The matter will be discussed with AO, GE Sevoke road and reply will be furnishes thereafter. OE dated | Recovery of Rebate Charges & LF] 1. Pertain to Sin HO Sevoke Road for asking the copy of agreement to install mobile | 27.10.21 | from Static Cell Tower/Cell on | towers. Wheels at Mil Stn Sevoke Road 2. Pertain to Stn HQ Sevoke Road for asking the BOO convened for this purpose for FY- 2017-18. 3.__ Pertain to Stn HQ Sevoke Road - _| 09 dated | Non- Recovery of Electricity and ~The matter will be discussed with stn cdr and reply will be furnished thereafter 27.10.21 | Water Charges in r/o KG School at | | Mil Stn Sevoke Road - _ - z __| TO daied | Assessment of Rent and allied charges | 1&2. Matter will be discussed with AO GE Sevoke Road and reply will be furnished 27.10.21 | from URC (CSD) at Mil Stn Sevoke | thereafter. Road 7 TT dated | Repair and maintenance of Offr Mess [1&2 Matter refer to Stn HQ Sevoke Road/ concemed units for further necessary action for 27.10.21 | and Non depositing of 25% of Guest jimated thereafter. Room Charges in to CFL _ ~~ Offg BSt an Road GE Sevoke RoadOlo The Director of Audit Defence Services, Eastern Command, Patna C&AG Audit Party-I ’ Camp-GE Sevoke Road Audit Memo No-9 Dated 28.10.2021 Sub: Non-Recovery of Electricity and Water Charges in r/o KG School at Mil Stn Sevoke Road MoD issued a letter regarding Establishing of Technical/Professional Colleges/Institutes/Schools on Defence Land vide their letter no 73150/APS/Plg/(Lands) Dated 1* Dec 2009. As per pare e(i) of the letter regarding Kindergarten Schools/Children Schools (10+2) running under the aegis of Stn Auth it is mentioned vide letter no. 10(17/93/D(Q&C) dated 06" Apr 1993, that Govt sanction will be obtained for opening of schools and that proposals so submitted will indicate the need for re-appropriation of the Govt bilding, if any, for the purpose and ‘0 the quantum of rent and allied charges with respect of furniture, water and electricity j pep “ot PLweto be recovered. During Audit it is observed that K G School (Shopping Centre) acquiring plinth area 374.8 Sqm has been running since 31° January 1988. During the scrutiny of Revenue Ledger maintained at AO, GE it is observed that Electricity and water charges are not being recovered from the School. In the regard reason for Non-recovery of Electricity and water charges from the school may be furnished to Audit. coder Deepak Kumar) Asst Audit Officer Defence Services To 1. GE Sevoke Road 2. Adm Commdt for early reply please. } Stn Hq Sevoke Road a " 3. AAO BSO Sevoke Roa CROP jee A ay)€ O/o The Director of Audit Defence Service command, Patna“) C&AG Audit Party-1 Xe Camp-GE Sevoke Roau Audit Memo No 07 Dated 27.10.2021 Sub — Assessment of Rent and allied charges from ATM at Station HQ Sevoke Road Provisions of Ministry of Defence letter no. MOD UO No 11013/2/74/D (Lands) Dt 06" Dec 1974 prescribes the rates applicable to lease of Land in cantonments for Banking Purposes, The rates adapted for lucrative purposes/Banking Purposes is rent 4 times the residential rent and premium 80 times the residential rates. According to the letter issued by Dte Gen LW&E/Land (Policy and ANC), QMG Branch letter no B/89915/AP-2/2003/Land Policy & AMC)/75 dt 28" Sept 2017 it is stated that Banks & ATMs should be treated as Commercial Activities & Rebate/Licence fee must be fixed at commercial rates & entire amount of Licence 24° fees need to be deposited in CFI. My MES is responsible for construction and maintenance of Defence infrastructure created from budgeted Government funds (capital/revenue). Ministry of Defence promulgated the Shopping Complex (Maintenance and Administration) Rule 2006 Para (5) provides for following- a) Determination of LF for each shop after ascertaining the standard Table of Rent (STR) if complex is within cantonment limit or the appropriate land value from the concerned DEO and value of the Building from MES. b) Decision regarding the nature of the trade to be permitted in each shop. c) Scrutiny of application received from allottees whenever shop fall vacant. d) Allotment of shops to the eligible person. e) Maintenance (operation of the fund of shopping complex) A Board of Offr held in 2018 (FY2018-19), 2021(FY 2021-22) for fixation and revision ofrent and allied charges in respect of Pvt Parties, ATM, Shopping complex run by unit in Govt/MES Re-appropriated Buildings and fix Special Licence Fee with reference to previous Board in Sevoke Road Military Station. To calculate the rate of recovery of License fee in r/o pvt parties the BOO has decided the rent @%30/- for the FY 2019-20. The recovery of electric charges was as per electric points installed in the shops @ on all-in cost.On the scrutiny of BOO, it is observed that Rent fixed for ATM’s at Sevoke Road ( Military station is not at commercial rates with reference to above as illustrated in Statement VII & VIII. Thus,there was under assessment of rent ranged between 25310/- and %85984/- which resulted into %279043/-. ‘Thus rate fixed was not in accordance with the Ministry of Defence letter dated 06" Dee 1974 which should have been based on STR maintained at DEO or Dte Gen LW&E/Land (Policy and ANC), QMG Branch dt 28" Sept 2017. Further, Board did not include representative of DEO. In this connection following information may be furnished- . Reason and basis for %30/- for assessment and fixation of Licences Fee. 2. Reason for assessment and Fixation of rent as normal against the Commercial terms i.e. four times of normal rent. 3. Reason for exclusion of representative from DEO. 4. The details of deposition of Rebate collected from ATM in CFI may be furnished. 5. The copy of earlier BOO held for the assessment & fixation of Rent & Allied charges for the period 2015-16 to 2017-18. On scrutiny of Revenue Ledger maintained at AO, GE Sevoke Road it was observed that there was revision of LF during the from 1% January 2019 to 31% Mar 2019 & 1 April 2019 to 31% Mar 2021. The copy of such BOO may be furnished, if not reason for change in LF may be furnished to Audit. (Deepak Kumar) OC Asst, Audit Officer Defence Services 6. To . GE Sevoke Road For early reply please. . AO BSO Sevoke Road 3. Adm Commdt Stn HQ Sevoke Road pe pleare gore94 TMEV UNDERASSESSEMT STN HQ SEVOKE ROAD ATW/BANK@O17-18, 2018-19) SRP UNIT [NAME of PVT] Prien ]Vatoc oF 10% of [Value of [ Value of Rent af | Monthly | Rent Difference] FROM | TO [PERIO[ TOTAL Party. | Area | fan per | he land | the land J the land Building | Rent |Reatisede Deeween p_ | DIFFER Sqmas | cost per 10% of | Assessed | as per | rent ENCE IN} per GE | sqm per the otal Rev | Assessed RENT Sevoke | annum cost per Ledger | and fixed ASSESS. Road ‘anni er | AND month | FIXED purpose | z 2 z 24 3 é z z 3 wa fe [8 Sin ig Sevoke | ICICI BANK a| Road ATM spon | 3200.04 | sosio.e | 210562.6| 547s2.82| 24ss0s.a| 22s30.54 | 2086212] 6111877212 sera [avo oF [s26u0 64] 210560.6 | S47ae 2 24550s.a[ 2ass0 se |0eazia] 974 [1770212 ‘in ig Sevoke 2| Road 32_| 320004 | s290.0s | 1052813 169485.64| 490610.8 | 9061.08} 4088.23] _67_] 4021423, 32] 329004 | 320008 | 1052813 eo8s 64 490610.8| 4906.08] 4088475 | S14 [3574473: sTur-vol UNDERAS: cs 10% of PERIOD] TOTAL | Area the land DIFFER. per ENCE IN sam pee RENT ‘anu |assesse| DAND FIXED z a z [i 1: Tass 24 [anes 2 36556 2a [as9886l 3 36556 34 [061.058 oral | 137038 C