Saturday, March 30, 2024

Chandigarh admn’s Panchayat Bhawan lost ₹1 crore in 5 years: Audit

Hindustan Times: Chandigarh: Saturday, 30 March 2024.
According to the report obtained under the Right to Information Act, Panchayat Bhawan has two large exhibition halls rented out to various organisations for commercial purposes
The UT local audit department has found that Panchayat Bhawan in Sector 18 (now converted into UT Guest House-2), which falls under the UT hospitality department, suffered losses to the tune of ₹1 crore between 2019 and 2023.
According to the audit report obtained under the Right to Information Act (RTI), Panchayat Bhawan has two large exhibition halls rented out to various organisations for commercial purposes. The report indicates a revenue loss of ₹39 lakh due to cancellation of hall number 502 on one occasion.
Additionally, the ₹2.15 lakh taken as advance for booking hall number 502 was utilised for renting hall number 501 to the same tenant. Then, hall number 501 was leased out for three years with a meagre increase of ₹500 per day without following the proper procedure.
In financial year 2022-23, the report stated, the hospitality department granted ₹31 lakh and ₹34 lakh, respectively, for salaries, wages and payments to retired staff to make UT Guest House-2 a sustainable entity. However, a condition was set that 50% of the society’s share will be deposited in the Consolidated Fund of India to the extent of fund transfer, but till date nothing has been done.
The report also highlighted that during the Covid-19 pandemic, 132 beds were utilised during a two-month quarantine period in 2020, resulting in a loss of ₹34 lakh due to lack of commercial bookings. This amount was to be recovered from the department concerned, but the authorities failed to do so. The audit further found that the society should address the matter with the department concerned and failing that it should be brought to the general body of the society for necessary action.
Even after repeated attempts, UT hospitality director Amit Kumar could not be contacted for comments.
Furthermore, the report revealed a loss of around ₹24 lakh as the salaries of staff running the canteen were paid from the society fund.
As per the report, in year 2021-22, a kitchen was allowed to be run by the UT hospitality department without intimating the provision of memorandum of association of Panchayat Bhawan society with the condition that revenue/sale proceeds of food and beverages will be deposited in the central treasury under receipt head of hospitality department by the secretary. But the salaries of the staff were paid from the society fund.
RK Garg, who obtained the information under the RTI Act, said, “I urge the UT adviser to scrutinise the accounts of such societies seriously in the interest of revenue.”
Panchayat Bhawan, which was converted into UT Guest House-2 in 2019, has 28 rooms and two big halls. The room rent is ₹1,792 per day.