PANAJI: The Comptroller and Auditor General of India (CAG) observed that the Goa Industrial Development Corporation (GIDC) submitted false utilisation certificates (UCs) to central govt and allegedly diverted the funds under Assistance to States for Infrastructure Development of Exports (ASIDE) scheme to the tune of Rs 32.2 crore.
Under the scheme, the GIDC, being the nodal agency, received grants aggregating to Rs 63.3 crore during the period from 2002-03 to 2013-14.
Of this, the GIDC utilised an amount of Rs 50.4 crore to take up approved works in the state and an amount of Rs 12.9 crore (including Rs 6.12 crore received in 2013-14) remained unutilised, the CAG said.
The scheme was delinked from central govt’s budgetary support in 2015-16. Though no specific project was taken up since the last release of the grant in 2013-14, the GIDC did not surrender the unutilised amount after nine years and despite repeated reminders from central govt.
Instead, the GIDC parked the unutilised grant of Rs 12.9 crore in fixed deposit accounts with scheduled banks. As of Jan 2023, a sum of Rs 32.2 crore (including interest earned of Rs 19.3 crore) remained in fixed deposits.
Audit scrutiny revealed that, as central govt was repeatedly reminding Goa of UC for Rs 6.1 crore of the grant released for 2013-14, the GIDC decided (Dec 2022) to show its own two works namely (construction of 800m3 raw and filter water reservoir at Verna Industrial Estate and raw water distribution network at Verna Industrial Estate) completed for Rs 6.3 crore during the period 2017-19, as works executed under the ASIDE scheme without any approval of the state-level export promotion committee (SLEPC) and DoC (department of commerce).
After taking approval from state govt for incorporating the above completed projects under the ambit of the ASIDE scheme, the GIDC submitted (Jan 2, 2023) the UC to central govt certifying that the grant-in-aid of Rs 6.1 crore sanctioned during 2013-14 was utilised for the purpose for which it was sanctioned; but without revealing the names and purposes of the two projects, the CAG said.
“In the UC submitted, the unspent balance of previous year and the balance remaining at the end of the year were shown as nil, although an unspent balance of Rs 6.8 crore of the previous years remained with the GIDC. It may be noted that, under the ASIDE scheme, state can take up projects only after getting prior approval of the SLEPC and DoC,” the CAG said.
“The two works for which the UC was submitted in Jan 2023 had neither prior nor post facto approval of the SLEPC and DoC. Further, though central govt had been insisting for submission of UC since 2013-14, the GIDC did not submit the UC for the two works executed in 2017-19, till Jan 2023, even though the works were claimed to be executed under ASIDE scheme,” the CAG said.
It is evident from the above that the GIDC misled central govt by submitting a false UC incorporating the two works which were not executed under ASIDE scheme, as there was no approval of the SLEPC and DoC for these works, the central auditor said.
“On submission of the UC, the GIDC encashed (Jan 2023) FDs amounting to Rs 26.9 crore at Rs 27.4 crore (with interest of Rs 0.4 crore) and transferred (Jan 2023) Rs 25.9 crore to its current account with Punjab National Bank. From the amount, the GIDC utilised an amount of Rs 16.9 crore to repay the loan availed by it from Punjab National Bank for refund of the dues to SEZ parties,” CAG said.
Thus, without utilising the grant amount for any approved projects under ASIDE scheme and submitting an incorrect UC, the GIDC diverted the scheme fund to avoid refund of the unutilised grant amount and interest earned thereon to central govt and used the diverted proceeds for discharge of its loan liability.
Further, the GIDC also misled central govt by stating that there was no unspent balance in previous years, while an unspent balance of Rs 6.8 crore of previous years remained with it. “By submitting false UC under ASIDE scheme to central govt , the GIDC has irregularly diverted the unutilised grant and interest earned thereon amounting to Rs 32.2 crore to its own benefit,” CAG said.
