Undue benefit of Rs 52 lakh given to private firm: CAG

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Aizawl | Published: September 5, 2016 4:58:34 PM

An undue benefit of Rs 52 lakh has been provided to a private firm towards purchase of Galvanised Corrugated Iron (GCI) sheets by the Mizoram Rural Development Department and the amount is yet to be recovered, the Comptroller and Auditor General has said.

The CAG report said that 12,546 bundles of GCI sheets were purchased from LRS Enterprise, Chanmari in Aizawl as the firm quoted the lowest rate for supply of the GCI sheets in response to a notice inviting tender floated on October 2012. (PTI)The CAG report said that 12,546 bundles of GCI sheets were purchased from LRS Enterprise, Chanmari in Aizawl as the firm quoted the lowest rate for supply of the GCI sheets in response to a notice inviting tender floated on October 2012. (PTI)

An undue benefit of Rs 52 lakh has been provided to a private firm towards purchase of Galvanised Corrugated Iron (GCI) sheets by the Mizoram Rural Development Department and the amount is yet to be recovered, the Comptroller and Auditor General has said.

The CAG report, tabled in the state legislature last week, said that 12,546 bundles of GCI sheets were purchased from LRS Enterprise, Chanmari in Aizawl as the firm quoted the lowest rate for supply of the GCI sheets in response to a notice inviting tender floated on October 2012.

The State Purchase Advisory Board (SPAB) chaired by Chief Secretary on December three, 2012 recommended LRS Enterprise to supply the GCI sheets at the rate of Rs 3,029 per bundle with the specification that it should be Rhino brand, weighing 53.60 kilogram a bundle, 0.35 mm in thickness and nine feet in length.

The SPAB recommendations was approved by the state government on January 15, 2013 and the administrative approval and expenditure sanction for Rs 3.80 crore during 2012-13 was accorded on February 25, 2013.

“However, before the purchase was administratively approved, the Director of Rural Development Department, on January 17, 2013 obtained a Proforma Bill from the supplier for Rs 3.80 crore for supply of GCI sheets and the entire money was withdrawn against the bill on March 21, 2013 from the government accounts and retained by the department” the CAG report said.

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