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| SFC fails to proceed against erring officials | | Rs 2 Cr loss to SFC through wrong VAT billing | | Asif Iqbal
JAMMU, Feb 27: The State Forest Corporation has suffered a loss of Rs 2 Crore on account of wrong VAT billing. However, the SFC and the Government have failed to punish the erring officials.
As per the details available with "Early Times", the matter first comes to the fore in the year 2008 and subsequently the then Managing Director vide order No: 3640-48/Bix/SFC/Sgr. Dated 22-10-2008 constituted three member inquiry committee comprising A R Mir the then General Manager (Technical/Fair Price) Kashmir, G Q Mir Secretary SFC and G M Patloo DM (Audit) SFC Srinagar.
The inquiry committee after collecting documents and relevant details from the department found that the interpretation of VAT has been done correctly by the Sale Circle functionaries and rate charged in Jammu has no ambiguity while as in Kashmir Sale Circle, the interpretation of VAT has been done wrongly without getting the matter thoroughly examined and approved by the purchasers are less than what was required as per rules. The committee found that this irregular and wrongful action done by the Sales functionaries have put the State Forest Corporation to huge loss with effect from 1-4-2005 to October 2010 when the matter came to the notice of the Managing Director SFC that the interpretation and application of VAT in Kashmir region varies from Jammu and practice adopted in Kashmir was wrong thus causes huge loss to SFC.
It started in 2005 when the then DM Sales North prepared a calculation Sheet in his office regarding rate structures (Gross/Net) which had been submitted to RM (S&M) Kashmir, Srinagar for his confirmation. Besides DM Sales North also furnished the same calculation sheet to the then DM (Audit) SFC Srinagar for his information and appropriate necessary action vide his letter No: 530 Dated 6-6-2005 and the said sheet also stands vetted by the then Divisional Manager (Audit) SFC Srinagar as well. The practice continued for the years 2005-06 upto 2008-09 (upto 18-10-2008) when Ghulam Mohammad Bhat took over the charge of Divisional Manager (Ext) SFC Zangli Division has been posted as DM Sales North Division Srinagar during the month of 9/2008.
The said officer while working in the Division pointed out the procedure of billing and application of rebate and VAT on sale of timber products was having irregularities and discrepancies; thus prevented the department from further losses.
The disparity in Jammu region and the other in Kashmir region reveals that there is a difference and the issue was not dealt properly by the then Regional Manager (S&M) Kashmir and other Officers at the helm of the affairs, despite clear cut instruction from the Chief Executive of that time.
As per the detailed statement furnished by the Statistical Officers posted in the Sale Circle Kashmir, Srinagar has auction/sold 3079473.34 Vol of timber through open auction sale of the timber for the period in question and realized net revenue of approximately 145 Crores thus causes nearly two crore loss to the State exchequer and the benefit which must go to the SFC goes into the kitty of timber traders/purchasers who purchased timber though the share of the same to officials involved cannot be rule out and need to be recovered along with the interest.
The inquiry committee in its 83 page report vide No: 1034/FPK dated 26-03-2010 submitted to Managing Director SFC Srinagar indicted three Division heads of Sales North Division Headquarter at Srinagar, Sales South Division Headquarter at Srinagar and Saw Mills Operation Division Headquarters at Shaltengh.
The committee further stated that the aforesaid Divisions are headed by the Divisional Managers with supporting staff consisting of Executive, Finance and Accounts, Statistics and Ministerial Staff and the General Manager/Regional Managers is the controlling Officers who has to supervise/monitor and control the working of the Divisions under overall control of Managing Director.
The irony is that the then Divisional Manager (Audit) SFC Srinagar has engaged a private party M/S S. Tandon and Associates (Chartered Accountants) to conduct the internal audit of Sales and marketing Circles, Jammu and Kashmir for the Financial year 2005-06 and same got established from the record, but the perusal of said audit reports reveals that the said firm has not pointed out the irregularity though almost all the points had been touched in their internal audit report and the inquiry committee found it a very serious matter as to how and why the Chartered Accountants engaged to conduct the revenue audit of SFC in Sales Circle Jammu and Sales Circle Kashmir have left this vital matter unattended knowing that the prescribed formula circulated by the Finance Department implemented in Sales Circle Jammu correctly and in Sales Circle Kashmir wrongly which lead the SFC to a huge loss.
The inquiry committee suggested that the matter needs to be probed by higher authorities for eventual action against the said firm under law; beside it also suggested action as warranted under rules to be initiated against the delinquent Officers/Officials involved in this case.
Even though almost four years has passed since the inquiry committee submitted its report to MD SFC, no action has been taken against the guilty officers. The senior officials of the department though charge sheeted the employees and seek their response on the allegations proved against them, nothing has been done so far.
When Contacted Managing Director SFC Lalit Kumar assured action against the guilty officials and said that the same will be initiated in shortest possible time. He said that he will look into the report and studied it in detail and will call the meeting of SFC management in next 8-10 days. " I have taken the charge recently and I have seen the report--- The action and the follow up is in hands--- we will be examining the report in next management meeting and well will deliberate upon it and whatever the nature of the action will be required, we will take it" said MD SFC Lalit Kumar. |
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