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| ERA mess in NC rule: Contractors take Rs 13 cr in violation of rules | | | Peerzada Ummer
Early Times Report
Srinagar, Jan 4: The irregularities within the much known Economic Reconstruction Agency (ERA) during the previous National Conference-Congress regime in the state continue to remain under the carpet with no probe or action taken after repeated audits raised the alarm bells high.
One such investigation had found that there is a non- recovery of more than Rs 12 crore as the agency didn't deduct one percent of the bills of the contractors from various construction projects in the state.
The documents in possession of Early Times reveal that according to the Jammu and Kashmir Building and other Construction Workers Welfare Cess Act, 1996, the employer is required to collect cess at the rate not exceeding two percent but not less than one percent of the cost of the construction incurred by the employer and the cess collector appointed by the Jammu and Kashmir Government within thirty days of the completion of the construction or the date of assessment.
The ERA, as per the documents in selected sub-projects including other projects at the macro level made payments of Rs 1299 crores to the contractors for the construction of 100 sub- projects during the period from 2007-2008 to 2012-13.
But what is surprising is that contrary to what has been formulated in the rules, labour cess at one percent had not been deducted from the bills of the contractors while making payments to them. Such action by ERA at that time had resulted in the non-recovery of Rs 12.99 crore.
It was later that the agency CEO stated that ERA has initiated the process of recovery of the cess labour of one percent from the contractors. The Jammu and Kashmir authorities, however, have not made the figures public so far that how mitigation of the previous non- recoveries has been initiated.
Pertinently, JK ERA was registered in December 2004 as a society under the Jammu and Kashmir Registration of Societies Act, 1941. The main objective of the society was to prepare and implement externally aided projects in the state. The governing body was reconstituted in April 2009 with inclusion of five members and one CEO. The Chief Minister of the state acts as the chairman of the society. The ERA is functioning under the administrative control of the Planning and Development Department, Government of Jammu and Kashmir and is entrusted to execute the infrastructure development projects in the state.
Meanwhile, reports informed that the present regime of the state has already been informed about the non- deduction of the one percent cess from the contractors- resulting in the non- recovery of the whopping Rs 12 crore. So far, there has been no word why such a violation of rules was allowed within the agency. |
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