NORTH DELHI MUNICIPAL CORPORATION

INTERNAL AUDIT DEPARTMENT

CITY ZONE

No.________/IAD/CZ/2013 Dated:________________

Subject : Physical Verification and Test Audit of records and accounts

maintained in the Office of E.E.Building, City Zone for the
period 21.12.2011 to 19.02.2013.

Please find enclosed the audit inspection report of the accounts of Executive
Engineer (Bldg.), City Zone for the period 21.12.2011 to 19.02.2013. Para-Wise
replies/comments be sent to the office of undersigned within a period of four weeks.

Encl:- As above

Internal Audit Officer

Z.A.P./City Zone

Executive Engineer, (Building)

City Zone.
Copy to:-
(1) D.C./City Zone- for information & ensuring expeditious replies.
(2) D.C.A. (I.A.D.) for information and record please.

INTERNAL AUDIT OFFICER

ZAP/CITY ZONE
 NORTH DELHI MUNICIPAL CORPORATION
INTERNAL AUDIT DEPARTMENT
CITY ZONE

No.________/IAD/CZ/2013 Dated:________________

Subject : Physical Verification and Test Audit Report of the office of E.E.
(Bldg.) City Zone for the period 21.12.2011 to 19.02.2013.

INTRODUCTION :

The I.A.R on the accounts of E.E.(Building),City Zone.was conducted by

Zonal Audit Party (City Zone), comprising of Sh. Manoj Kr. Naresh, I.A.O., Sh.
Pradeep Rawat, Acctt., Sh. R.K. Yadav Auditor .and Sh. Sandeep Kumar
Auditor. The audit was conducted on 19.02.2013 to 04.3.2013. This was the
physical verification and test check audit conducted on the accounts of the
office of E.E.(Building), City Zone.

AIMS AND OBJECTIVES

The aims and objectives of the department is to check the Unauthorized

Construction and take necessary action against the Unauthorized Construction, to
collect Conversion Charges, issue of Bldg. Plan and Completion Certificate in the
area falling under the jurisdiction of City Zone.

H.O.D./H.O.S./D.D.O’s/CASHIER
The following officials have served as HOD/HOO/DDO/Cashier during the
period of audit.

S.No. H.O.D Head of Office Incharge Cashier

1 Sh.Anil Sh.Manoj Kr. Sh.ManojKr.Nijhavan --
Prakash.(E- Nighavan. Ex. Ex. Engg.
inC) Engg.

Budget Allocation and Expenditure for the year 2011-12 & 2012-13.

Budget Year Expenditure upto year Excess/Saving

ending
List as per format at
Annexture-A.

Statutory Audit :
Statutory audit report was not produced by the department.

Vacancy Statement:
S.No. Name of Post No. of Posts Filled Vacant
Sanctioned
Annexed as
‘B’
Maintenance of Records:-
The maintenance of records of the office of EE (Bldg.), City zone for the period
21.12.2011 to 19.02.2013. was not found satisfactory subject to the
observations made in Current audit report and in test audit note.

Old Audit Report:

There were 90 audit paras outstanding in respect of EE(Bldg.) City Zone.
The department has not made compliance of these paras and such nil paras
have been settled. These 90 paras have been incorporated with current audit
report as part-1 (old audit report).

(A) Details of Old Audit Report:

S.No. Year Total Para Para No. of Outstanding

Para’s Settled settled Para’s with Para
para’s No.
Given on pre- as Form IA-9
page
Total

(B) Details of Old Recovery.

S.No. Year Total old Amount Recovered Balance
Recovery Recovery
Para Amount Against paras
No. (Amount in Rs.
Para-wise)
1 1992-93 to Rs.5920/- _ _ Nil.
2012-
13(upto
19.2.2013)
Total Nil

Details of Current Recovery (Audit period 21.12.2011 to 19.02.2013 ) :

Para No.’s Total Recoveries Amount Balance (In
(In Rs.) recoveries Rs.)
04 10613/- nil Rs. 10613/-
05 819714/- nil Rs. 819714/-
07 03/- nil Rs. 03/-
10 106693/- nil Rs. 106693/-

TOTAL Rs: Rs. 9,37,023/-

The internal audit report has been prepared on the basis of information
furnished and available by the EE(Bldg) City Zone . Some words missing
disclaims any responsibility for any misinformation and/of non-information on
the part of auditee.

IAO/ZAP/CZ

DCA/IAD/HQ
PART No. II (Current Audit)

Vide this office letter No. IAD/ZAP/CZ/2013/01 dt. 19.02.2013, the

following records were requisitioned for audit scrutiny.
1.E.C.R.
2. P.File & S.Book.
3. Attendance Register & CL Account.
4 Budget Register.
5. Contingency/Imprest Register.
6. Income statement dully verified by the deptt and Account Branch.
7. Cash Book.
8. Disbursement register/Cheque Register.
9. Bank Reconciliation Statement.
10.Temp. Advance Register.
11. Property Register.
12 Hiring Trucks/Payment Files.
13. G-8 Books with challan.
14. G-8 Books Stock Register
15. Challan Book.
16. Misalband Register
17. OTA Register if any.
18 Records of Booking of U/A construction.
19. Report of sanction plan/rejected plan.
20. Court Register.
21. C and D Form Register.
22. Completion Certificate Issue Register.
23. Demolition Charges Register.
24. Development Charges Register.
25. Ceiling cases Records.
26. Complaint Register.
27. Notice Book.
28. Remand cases Register and File.
29. Collection Register with regard to collection of conversion charges
and parking charges.
30. Stationary register.
31. Cheque dishonor register.
32. Imprest register.

The internal audit report has been prepared on the basis of information
furnished and made available by the Department. The Internal Audit
Department of MCD disclaims any responsibility for any mis-information
and/of non-information on the part of auditee.

Para No. 1: Non production of Record.

Out of the above requisitioned record, items numbers at S.No. at 2,

3(Attendance Register only), 4, 7, 13(partly), 16(for the year 2011-12), 18, 19,
20,22, 23, 25 and 30 were produced by the department. Audit had issued three
numbers of reminder vide letter no.05/IAD/ZAP/CZ/2013 dated 22.02.2013,
09/IAD/ZAP/CZ/2013 dated 27.02.2013 and 10/IAD/ZAP/CZ/2013 dated
01.3.2013 with regard to non-production of record, but department was failed
to produce the complete record, even some mandatory records were also not
produced. Either the record was not maintained or the production of the same
appears to have been avoided, reasons to which may be given to Audit. In case
any record unchecked other than produced, then the entire responsibility will
lie on the shoulders of the concerned officers/officials of the Deptt.
As a result of physical verification and test check of accounts of
the office of EE(Bldg.) City Zone, whatever the records were produced, the
following discrepancies/ irregularities/ omissions/ errors etc. came to the
notice to the Audit.

Para No. 2: Improper maintenance of Budget Watch Register.

During the course of audit of Budget Watch Register
for the year 2011-12 & 2012-13, audit has observed that the said register was
not maintained in proper manner.Some mandatory observations illustrated as
under:-
i) No paging was done and paging certificate at the beginning of the
register was also not given by the competent authority.
 The mandatory columns/format such as particulars of expenditure
was not mentioned in the register.
ii) No signature of the official /officer for the entries of expenditure and
periodic check by the competent authority were made in the register.
Reason for non maintenance of Budget Watch Register in proper
manner may be clarified to audit.

Para No. 3: No Action taken to Sealing the Properties.

On going through the scrutiny of Sealing Register

maintained by the department, the properties on which the Sealing Order were
passed but no action was taken by department to till date against those
properties mentioned as below:

Sr.No. of Sealing Property Address Date of Sealing Order

Register & Date Passed
------------------- --------------------------------- ------------------------------
151/---- Shop No. 514, old Lajpat Rai Mkt. 19.12.2011
152/23.12.2011 P.No. 254, Old Lajpat Rai Mkt. –do-
153/23.12.2011 P.No.92,Old Lajpat Rai Mkt. –do-
154/23.12.2011 P.No. 482, Old Lajpat Rai Mkt. –do-
162/20.7.2012 P.No. 3963-65, GB Road. –do-
163/27.8.2012 P.No. 2590-91,Kadam Masjid, S.R.Bazar. 27.8.2012
173/04.102012 P.No. 1915,Lal Khnan Khun -do-
180/16.10.2012 P.No. 1095,Kucha Natwa, Ch.Chowk. –do-
183/18.10.2012 P.No.1552,Bhagirath Palac,Ch.Chowk 21.12.2012
185/18.10.2012 P.No. 2177,Chat Indira Sen Road -do-
187/18.10.2012 P.No. 2206,Chat Indira Hc.Sen Road. –do-
188/18.10.2012 P.No. 1826,Bhagirath Palace,Ch.Chowk. –do-
190/25.10.2012 P.No. 1018,Katra Ghee, Tilak Bazar. –do-
191/26.102012 P.No.1112,Kucha Natwa, Ch. Chowk -do-
193/31.10.2012 P.No. 569, Katra Neel Ch. Chowk -do-
194/06.11.2012 P.No. 2609,Chatta Pratap,Kinari Bazar 14.11.2012
195/27.12.2012 P.No. 682, Chandni Mahal. 21.01.2013

Moreover, one sealing case file of P.No. 2619-20 Nai Sarak, in the name of
Sh. Puran Bhagat was booked for demolition action U/C File No.
86/B/UC/CZ/12 dated 27.01.2012. The concerned JE(B) has reported in his
status report that action cannot be taken as it may pose damage to the nearby
residents being narrow lane and density occupied locality and hazardous for
the lower floor of old property.
 The said property was inspected by the concerned JE(B)/AE(B) as per the
order of Hon’ble High Court, but the copy of the said order was not available in
the file. The said property was proposed to sealed and after getting the sealing
order dated 18.10.2012, the said property sealed on dated 27.10.2012 (page
no. 5/N of the file). On dated 21.12.2012, the JE(B) concerned reported that
property involved in contempt petition No. 678/2012 filled N.K. Gupta v/s
MCD and complete action was required to be taken on priority basis and get
order for de-sealing on 21.12.2012 and the said U/C property demolished on
same day ie. 21.12.2012 (page-6/N).

Audit has observed that the said property booked on 27.01.2012 and
action was taken on dated 03.10.2012 by the department approximate after
eight months. No any Hon’ble High Court order regarding inspection and copy
of demolition order seen in the file. The recovery of cost of demolition from the
owner of the property was recovered or not as there was no entry of demolition
charges in the demolition charges register.

Apart from above the following irregularities in the Sealing Register were
also noticed by the audit.
i) No paging was done and paging certificate at the beginning of the
register was not given by the competent authority.
ii) No signature of official/Supervisor maintaining the register and
periodic check by the competent authority were found in the register.
iii) Sealing entries were done upto 27.12.2012 in the Sealing register so
produced to audit party.

Reason for non- taking action on the above said properties after which
the sealing order were passed by the department, and irregularities
noticed in the above said demolished property may be clarified to
audit.

Para No.4: Non proper charging of Labour Cess.(Recovery of Rs.10613/-)

Property No. 273, Kucha Mir Ashiq, Chawari Bazar, Delhi-06.

Smt Ashia Begum and Shama Begum. File No. 08/BP/CZ/2012 dated
23.01.2012.

Detail of the charges and area applied for the sanction was as
under:
Area of Plot: 116.22 sqm.
Area left for road widening: 4.36 sqm.
Net area: 111.86 sqm.
Area Claimed: 100sqm.
The building was sanctioned floor wise as below:-
Stilt- 89.68 sqm.
G.F – 89.68 sqm.
F.F – 89.68 sqm.
S.F - 89.68 sqm.
T.F – 79.91 sqm.
Total:-438.63 sqm.
As per the calculation sheet placed at page 51 of the file the
department had charged the Cess @Rs. 6200/- per sqm for the area 301.691
sqm. The calculation as per sheet and the Cess which should had been
recovered by the department is given below:

As per Calculation Sheet Calculation Should Be

Total area= 301.691 sqm 438.63 sqm
Rate = Rs.6200/- P.Sqm Rs. 6000/- P.Sqm
301.691x 6200= Rs.18,70,484.20/- Rs. 27.19.506/-
Add- 15% = Rs. 280572.63/- Rs. 4,07,925/-
 10% = Rs. 1,87,048.42/- Rs. 2,71,951/-
------------------ ---------------------
Rs. 23,38,105.25/- Rs.33,99,382/-
------------------ ---------------------
Cess-1% of 23,38,105 = Rs.23,381/- Rs. 33,994/-
Cess recovered Less:- Rs. 10,613/-
The calculation submitted by the architect on behalf of the applicant
should have been checked by the AE (Building Plan) but without verifying the
calculation the AE proposed for the sanction of Building Plan. No querry had
been raised by the AE (Building Plan) on the calculation of labour cess
submitted by the Architect.
It has come to the notice that department has not charged the rates
uniformity.
The above said case is illustrative and not exhaustive. The Executive
Engineer (Building) may look in to similar other cases and directed the
concerned staff to recover the balance amount if any.

Para No.5: Non Recovery of demolition charges for Rs. 8,19,714/-

based on demolition register so prepared w.e.f.
16.10.2012 to 16.01.2013.

During the course of audit of Demolition Charges

Register w.e.f. 16.10.2012 to 16.01.2013 so produced by the
department the audit has observed that demolition charges
amounting to Rs. 8,19,714/- have not been recovered w.e.f.
16.10.2012 to 16.01.2013 during which some demolitions
have been shown taken place and hours involved in
demolition have been mentioned against each demolition
against the property so shown from Sr. No. 01 to 109 up to
the period of16.01.2013 @Rs.2350/-per hour, the total of
which comes to Rs. 8,19,714/-. The department failed either
to recover the said charges or action for getting the recovery
has been taken up by the department.

The competent authority was intimated to recover the

said demolition charges from the owners of the demolished
property immediately under intimation to audit.
The following irregularities/ discrepancies in
maintenance of Demolition Property Register were also noticed by the audit:-
i) No demolition hours shown in the register.
ii) No paging, paging certificate and periodic check was done in the
register.
iii) Name of the property owner, reason for demolition, sanction of the
competent authority for the demolition, date of demolition action,
time/duration of demolition charges as per the period/time/duration
of demolition action, G-8 number & date vide which demolition
charges recovered from the person against whose property action was
taken.
iv) The name & designation of the concerned official maintaining the
register.
v) No entry in the register was signed by the person maintaining it and
by the supervisory staff.
vi) The register was not maintained in the prescribed format.
Reason for non maintenance of register in proper way may be clarified
to audit.

Para No.6: Improper maintenance of Stationary Stock Register.

 Stationary Stock Register so produced to audit by the department
was not maintained in proper format. Audit had observed following
irregularities in the said register:
i) Instead of stock article register the said register was maintained in
the register meant for advance register.
ii) No Index number of articles given in register. No paging and paging
certificate by the competent authority was given.
iii) Only few items of stationary articles were entered in the register.
iv) The said register was being maintained since 20.02.2004 to till
date, instead of maintained year wise.
v) Entries of articles received and issued not made in proper manner.
The signatures for receiving the items were also not shown in the
register.
vi) Some items shown issued without any receiving of said item, such
as Identity Card, Demolition Book No. 12476 to 12500 & 12351 to
12375.
Reason for above irregularities/discrepancies may be clarified to
audit.

Para No.7: Checking of G-8 Books(Recovery of Rs.3/-)

The following G-8 were produced by the department to audit for

scrutiny:
1. G-8 number 094201 to 094300
2. G-8 number 925175 to 925200
3. G-8 number 925201 to 925300
4. G-8 number 925401 to 925500
5. G-8 number 925301 to 925400
On checking of calculation of amount received through G-8 receipt no.
925410 to 925417, it was found that Rs. 3/- were short deposited in
Treasury. The same may be deposited into treasury under intimation to
audit.

Para No. 8: Non Action Taken cases in the Building Plan Application
Register, Misalband Register and Building completion Certificate Register.

During the course of audit of Building Plan Application Register,

Misalban Register and Building Completion Certificate Register it has been
noticed that in most of cases the department had not taken any action till date
as shown below:
1) Building Plan Application Register
Period Total Case Sanction Cases Rejected Cases Non-Action
Taken Cases
--------- ------------ ------------------ ------------------- ---------------

01/01/2012
To 31.12.2012 63 30 14 19

01/01/2013
To 15/02/2013 03 nil nil 03

2) Misal Band Register.

Period Total Cases Action Taken Non- action Remark

Booked as U/S Taken Cases
--------- ------------------- ----------------- ------------------- -----------
01/01/2012
To 31/12/2012 96 79 08 (9 court cases)
3) Building Completion Certificate Register.

Period Total Cases Sanction Cases Rejected Cases Non Action Taken
--------- -------------- -------------------- -------------------- -----------------------
01/01/2012
To 31.12.2012 12 04 03 05

01/01/2013
To 31/01/2013 01 nil nil 01

Reason for not taking action in the cases shown above till date may be
clarified to audit.

Para No. 9: Non proper maintenance of Cash-Book.

During the scrutiny of Cash Book so produced to audit, the following
irregularities/discrepancies were noticed by the audit:
1. No proper paging and paging certificate was given in the Cash Book.
2. Daily Income & Expenditure balance was not shown.
3. No voucher and cheque number was shown in the Cash Book.
4. Book Adjustment and Monthly Income & Expenditure Statement was not
shown in the Cash Book.
5. Bank Reconciliation was not done as reported by staff.
6. No Cheque number through which payment has been made were shown
in the Cash Book w.e.f. 21.12.2011 to 07.3.2013 and 14.3.2013 to till
date.
7. A cheque number 085730 dated 09.01.2012 amounting Rs.1,77,230/-
deposited in Bank on dated 11.01.2012 as per cheque deposit receipt but
payment made against the same cheque on dated 09.01.2012 ie previous
to its deposit. Many other cases of same nature also found in the Cash
Book.
8. No voucher number shown for the payment on dated 14.3.2012.
9. The following cheques were cancelled and fresh cheque issued but no red
pen entry and signature of the competent authority on the cancelled
cheques was found by the audit:-
i) Cheque no. 000084 & 000086 dated 14.3.2012.
ii) Cheque no. 049318, 049304,049303, and 049407 dated
14.3.2012.
iii) Cheque no. 049329 dated nil.
iv) 04942 & 049350 dated 08.10.2012.

PARA 10: IRREGULARITIES FOUND IN PERSONAL FILE AND SERVICE BOOKS.

(Recovery of Rs. 106693/-)
The following irregularities have been noticed in the personal files and service
book of the officials whatever produced to audit.

1. Sh. Avdesh Kumar LDC:- As per Office Order No. 3(57)/LDC/CG/88/408 dated
06/10/1988 issued by CEO Sh. Avdesh Kumar was appointed LDC on regular basis w.e.f.
15/7/1990 ie after attaining the age of 18 years .Before attaining the age of 18 years the
service rendered by Sh. Avdesh Kumar should have been treated boys service. Since Sh.
Avdesh Kumar LDC was appointed as LDC on regular basis w.e.f. 15/7/1990 so he should
be granted 1st ACP w.e.f. 15/7/2002 instead of 07/10/1988 ie after completing 12 years
of regular service in the scale and accordingly 2nd MACP w.e.f. 15/7/2010 instead of
07/10/2008 ie after completing 20 years of regular service in the scale.
The audit has noticed that over payment amounting Rs. 106693/-(Rs one lac sixty six
thousand ninety three) approx. has been made to Sh. Avdesh Kumar LDC w.e.f.
 07/10/2000 to 31/12/2012 on a/c of salary. The same may be recovered along with
necessary correction in the scale under intimation to audit.

2. Sh. Ranjit Kumar s/o Sh. Sargoo Prashad LDC:_

i) Earned Leave application w.e.f. 16/10/2012 to 26/10/2012 was placed in the
P.File but not entered in the Leave A/C of the S. Book.
ii) Basic Pay as on 11.4.2011 shown Rs. 5830/- instead of Rs. 5880/-.
3. Sh. Mukesh Chand Meena.JE:-
i) 18 days of Earned Leave credited for the period 10.6.2009 to 31.12.2009 instead
of 15 days of Earned Leave. (Excess credited 03 days).
ii) Release of Annual Increment after probation period without concurrence by the
concerned Accounts Department and without passing necessary Accounts Test as
per Office Order No. HC-ii/Engg./HQ/2009/541 dated 13.5.2009.
4. Sh. Ashish Kumar Gautam JE:- i) Suspension order no. HC-ii/Engg./HQ/2009/186 dated
18.11.2009 was not attached/found in the file.
iii) Release of Annual Increment after probation period without concurrence by the
concerned Accounts Department and without passing necessary Accounts Test as
per Office Order No. HC-ii/Engg./HQ/2009/541 dated 13.5.2009.
5. Sh. P.C. Machiwal JE:-
i) Earned Leave availed for the period 30.10.2012 to 31.10.2012 was not entered in
the Leave a/c .
ii) No any certificate of the birth of the child obtained by the deptt but granted
paternity leave for 15 days to the official.
6. Kaushal Kishore Kaushik JE:-
i) Leave availed by the official w.e.f. 08.02.2010 to 22.02.2010 and joined duty on
23.02.2010 as per application but the same not debited in the Leave a/c.
ii) Page no. 02 of the S. Book was not completed.
7. Sh. Ram Niwas s/o Sh. Phool Singh Peon—
i) Column no. 08 not completed in the S. Book.
ii) In Medical Certificate Date of Birth shown 1/2/196 which is not clear.
iii) Earned Leave credited up to 01/01/2001 was shown as 300+ 10+30 instead of
300+15.
Reason of above said irregularities may be clarified to audit.
Para No.11. Difference in Group C post as per vacancy statement & List of employees:

In reference of requisition letter no. 02/IAD/ZAP/CZ/2013 dated 19.02.2013 regarding

vacancy position of the staff working in the department, the department had produced the
vacancy statement vide their letter no. 8712 dated 01.3.2013 and a list of employees vide latter
no. 8711 dated 01.3.2013.
It comes to the notice of audit that Group C post shown in the vacancy statement & list of
the employees differ as 07 nos. of JE are working in the department but in the vacancy
statement it shown 04 nos. only with 03 nos. of post vacant needs clarification to audit.

Para No. 12: other observations:-

1. No paging and paging certificate by the competent authority was given in the Budget
Register.
2. No Signature of the HOD found in the Budget Register.
3. Cutting & Overwriting found in most of the records were not attested by the officer
Incharge.

INTERNAL AUDIT OFFICER

NORTH DELHI MUNICIPAL CORPORATION

INTERNAL AUDIT DEPARTMENT
CITY ZONE

No.________/IAD/CZ/2013 Dated:________________
Subject: Physical Verification and Test Audit of records and accounts
maintained in the Office of E.E.Building, City Zone for the
period 20-12-2012 to till date.

As Per approved Program the Physical Verification and test audit on the
Accounts of the above said unit is to be conducted from19/01/2013 Kindly supply the
following records to the audit party without any delay along with proper sitting
arrangement.

1.E.C.R.
2. P.File & S.Book.
3. Attendance Register & CL Account.
4 Budget Register.
5. Contingency/Imprest Register.
6. Income statement dully verified by the deptt and Account Branch.
7. Cash Book.
8. Disbursement register/Cheque Register.
9. Bank Reconciliation Statement.
10. Temp. Advance Register.
11. Property Register.
12 Hiring Trucks/Payment Files.
13. G-8 Books with Challans.
14. G-8 Books Stock Register
15. Challans Book.
16. Misalband Register
17. OTA Register if any.
18 Records of Booking of U/A construction.
19. Report of sanction plan/rejected plan.
20. Court Register.
21. C and D Form Register.
22. Completion Certificate Issue Register.
23. Demolition Charges Register.
24. Development Charges Register.
25. Ceiling cases Records.
26. Complaint Register.
27. Notice Book.
28. Remand cases Register and File.
29. Collection Register with regard to collection of conversion charges
and parking charges.
30. Stationary register.
31. Cheque dishonor register.
32. Imprest registers.
33. Any other auditable record.

INTERNAL AUDIT OFFICER

ZAP, CITY ZONE
The Executive Engineer,
Building Department,
City Zone.
 MUNICIPAL CORPORATION OF DELHI
INTERNAL AUDIT DEPARTMENT
CITY ZONE DELHI-6

No. F._______/IAD/ZAP/CZ/2008/ Dated:____________

Subject :- Limited Special Audit in respect of collection and recovery of conversion and
parking charges of Bldg.Deptt.City Zone for the period 01.06.2007 to
31.12.2009

Please find enclosed herewith the limited special audit report in respect of
collection and recovery of conversion and parking charges of Bldg. Deptt.City
Zone for the period 01.06.09 to 31.12.2009.

Encl:- As aboveio

Internal Audit Officer

ZAP/CZ

Dy.Chief Accountant/Internal Audit

 MUNICIPAL CORPORATION OF DELHI
INTERNAL AUDIT DEPARTMENT
CITY ZONE DELHI-6

No._________/IAD/ZAP/CZ/2010 Dated:_________

Subject :- Limited Special Audit in respect of collection and recoveryof conversion and
parking charges of Bldg.Deptt.City Zone for the period 01.06.2007 to
31.12.2009

INTRODUCTION

As per Commissioner MCD orders no.PSC/086/2010 dated 10.2.2010 a

limited Special Audit on collection and recovery of conversion charges of the
records of Executive Engineer (Bldg.), City Zone, for the period mentioned
above was conducted by the Zonal Audit Party- City Zone w.e.f. 17.02.2010
onwards. It was also directed to ensure that Cheques /DDs are deposited by the
Zonal Bldg. Departments in the Mpl. Treasury and action taken on dishonored
cheque/DDs to sustain the substantial loss in Mpl. revenue. The audit party
consisting of the following staff conducted the audit of the said office under the
supervision and control of Smt. Geeta Batra, Internal Audit Officer.

1. Sh. Lalit Kumar, - Accountant

2. Sh.Mansoor Ali - Head Clerk

3. Sh. Shishu Pal` - UDC

4. Sh. Raj Pal - UDC

Sh. ANSAR ALAM held the post of Executive Engineer (Bldg.)at the time of audit.

CURRENT AUDIT
The following records were requisitioned from the office of Executive
Engineer(Bldg.)/City Zone for the audit of building conversion and parking charges
vide letter No. F1/IAD/ZAP/CZ/2010 dated 17/2/2010 and repeated reminders
vide letters No. IAD/ZAP/CZ/2010/2,3,5,8, of different dates:-

1. Certified list of G8 books received by the department and used during the period covered by
Audit.
2. Certified list of staff deputed for collection and deposit of municipal revenue during the
period 1.6.2007 to 31.12.2009, including the no. of G 8 along with period concerned.
3. G8 books along with treasury Challans during the period covered by audit,
4. G8 receipt register.
5. Income cash book
6. Income certificate duly verified by the competent authority during the period covered by
audit
7. Bank reconciliation statement during the period covered by audit
8. Dishonored Cheque Register
9. Copy of list of Cheque remitted in the Municipal treasury
10. Details of staff deputed to issue G8 with designation and verification of signature/initials by
DDO.
11. Guidelines, circulars/orders issued time to time
12. Self assessment forms in respect of parking charges, conversion charges etc..submitted to the
building department alongwith departmental copy of G8 receipt w.e.f. 1.6.2007 to 31.12.2009
13. Concerned files of building plans submitted by the applicants.
14. Details of approval given by the comptent authority in respect of conversion cases

The following records were produced to audit:

1. Certified list of G-8 Books (22NOs.) issued by Gen.Branch CZ during the Perios of
audit 01.06.2007 to March 2010.
2. List of G-8 Books(22no.) used by Bldg. CZ during the above period.
3. 22 no. of G-8 Books.
4. Challans during the above period.
5. Zonal Income Register during the above period by Zonal Treasury.
6. Certified list of staff deputed for collection and deposit of Mpl revenue during the
period 01.06.2007 to 31.12.2009.
7. List of Dishonour Cheque produced by General Branch.
8. Self assessment forms(approx.300).

PARA-I NON PRODUCTION OF RECORDS

Out of the requisitioned records, records mentioned at Sl. No.4,5, 6 ,7 ,8 , 12(Partly

given) 13,14 were not produced to Audit. A Certificate regarding non-maintance of record at
Sl.No.4,5,7,8,13,14 have been given by the building department(copy attached).If any
irregularity/discrepancy is found in the records not produced to audit, at any stage, the whole
responsibility will lie on deptt. concerned. However, as a result of test check of the records
whatever produced to audit, the following discrepancies/irregularities/omissions/errors have
came to notice of the audit.

PARA 2 CHECKING OF G-8 BOOKS & CHALLANS

G8 books 22 in numbers were produced before audit parties in spite of several verbal and
written reminders and no other supportive documents like stock books and list of G-8 books
issued and returned were produced except some corresponding Challans.

1. 352001 to 352100 31-3-08 to 31-3-08

2. 720001 to 720100 10-4-08 to 23-5-08
3. 379001 to 379100 9-7-09 to 11-8-09
4. 739001 to 739100 24-6-08 to 27-6-08
5. 631001 to 631100 28-12-07 to 10-3-08
6. 174001 to 174100 27-06-08 to 6-10-08
7. 357001 to 357100 31-3-08 to 10-4-08
8. 364001 to 364100 23-5-08 to 23-06-08
9. 713001 to 713100 2-06-09 to 24-06-09
10. 351001 to 351100 13-8-07 to 28-09-07
11. 165001 to 165100 28-09-07 to 27-12-07
12. 37001 to 37100 24-06-09 to 9-07-09
 13. 172001 to 172100 30-6-08 to 11-09-08
14. 655002 to 655100 27-3-08 to 28-3-08
15. 285001 to 285100 6-10-08 to 23-1-09
16. 354001 to 354100 31-3-08 to 31-3-08
17. 78001 to 78100 23-1-09 to 2-04-09
18. 706001 to 706100 11-8-09 to 7-10-09
19. 843001 to 843100 8-04-09 to 29-5-09
20. 841001 to 841100 6-4-09 to 24-4-09
21. 356001 to 356100 31-3-08 to 31-3-08
22. 353001 to 353100 31-3-08 to 31-3-08

In case any irregularity in the G-8 books not shown to the audit, if any, other
than mentioned G-8 books, the entire responsibility shall be on the shoulders of
Department concerned.

PARA-3 IRREGULARITIES IN G-8 BOOKS.

During the scruitiny of G-8 books, the following irregularities have been noticed:-.

1 The amounts of G-8 books were not checked by any authority.

2 G-8 No.172097,172029,739005,285050, 841100, 841029 cancelled without any reason.
3 In G-8 No. 655001 was missing from the G8 book which could result into loss of revenue
to the department
4 G-8 No.352006 dt.31/3/08 issued without any signature.
5 All the cutting made in the G-8 were not attested by any Superior Authority.
1. Self-assessment forms bearing G.8 No. 232001 to 232100 was shown to audit but was not
mentioned in the list of G-8 books used by the building department.
2. Two G-8 books having the same no. 356001 to 356100 were issued but had different dates.

The above discrepancies be verified and intimated to audit.

PARA 4 NON-VERIFICATION OF REMITTENCE INTO MPL TREASURY

As per Para 22.3.2 of CPWD for any payment made into treasury , a consolidate receipt
should be prepared in form 50 for all these remittance made into treasury and sent to
the ACA of the concerned zone for verification in the first week o the month to which
the same pertains. But it has been noticed that the instructions as contained in the
CPWD Code are not being followed in the office of EE(Bldg.)/City Zone.

PARA 5 IRREGULARTIES IN DISHONURED CHEQUES

A list of 35 dishonored cheques was produced to Audit Party which was to the
tune of Rs. 377456 out of which only 9 dishonored cheques amount i.e. Rs.99226/- are
so far recovered causing a loss of Rs. 278230/- to the MPL Revenue .Moreover it is
pertinent to mention here that no action so far have been taken against the defaulters
by the building department . This is a serious lapse on the part of the department and
action should be taken by the department under intimation to the audit department.
 PARA 6 : CHECKING OF SELF ASSESSMENT FORMS FOR CONVERSION AND PARKING CHARGES

During checking of self assessment forms whichever were produced before the audit
party following discrepancies have been noticed:

1. Some self assessment forms were blank and bearing no G-8 numbers
2. No. D&C Register has been maintained by the department so it could not be confirmed
whether conversion charges or parking charges for the entire period of audit have been
recovered or not.
3. In some cases only registration amount have been paid but it could not be confirmed whether
conversion/parking charges have been paid or not (List attached).

PARA 7 : Non deposit of One time Parking Charges

During checking of self assessment forms produced to audit it is seen that one
time parking charges are not being deposited resulting a huge loss of Mpl. Revenue. A
list of few properties is attached and a loss of Rs. 40.49 lacs is calculated. No recovery
register/record having the details of properties and recoveries of parking and conversion
charges is maintained by the department so the correctness of amount cannot be
checked.

However, deptt. has given a certificate that no action for recovery of parking
charges could be taken against the defaulters being a Special area(copy attached).

PARA 8:NON MAINTENANCE OF MANDATORY RECORDS LIKE D & C REGISTER.

During audit of the Bldg. Deptt/CZ it is seen that mandatory record like D & C Register
are not being maintained by the bldg. Deptt. due to which it was very difficult to
ascertain the exact amount due against the property/shop/commercial
establishments, also there are no proper records of payments which are made on
installment basis.

1. D & C Register be made notified road wise & every shop in that street should be
entered in that register, a separate page should be kept for each shop/commercial
establishments indicating area of plot, area of shop, type of use, category etc.
 2. The amount received against that property viz mixed land use & parking charges
should be entered in that register indicating G-8 No, amount & date of payment.
3. Interest @ 8% p.a. be levied for delay in payment for parking or mixed land use
charges of the relevant financial year & as per instructions issued from time to
time.
4. Action taken/notices issued for recovery against the cheque dishonored & the non
payment may also be entered in the D & C Register & Dishonour Cheque Register.

GENERAL IRREGULARTIES

1. Cuttings and over writing were seen in record which was not attested.
2. Some G-8 receipts were seen without the stamp and signature of the Zonal Cashier on
account of receipt of money.

3. No G-8 book receipt register shown to audit by the department, hence it could not be
ascertained that as how much G-8 books were received by the department.

INTERNAL AUDIT OFFICER

ZAP/CITY ZONE.

DCA/IAD

PROPERTIES IN WHICH ONLY REGISTRATION FEE HAVE BEEN DEPOSITED. NO OTHER DETAIL
ENCLOSED.SO WHETHER PARTKING CHARGES ON CONVERSION CHARGES ARE RECOVERABLE CANNOT BE
ASSESSED.
NAME PROPERTY NO REGISTRATION DEPOSITED

Smt. Arif Kamla Alvi Shop No. 3890 Khirkii M/s Alvi 353011/ dt. 31/3.08
Dental Lab

-do- Shop No. 3863 Khirkii M/s Alvi 353012 dt. 31/3/08
Dental Lab

Sh. Akhilesh Jain Prash Deep Building , Room 353002 dt.31/3/08

No.11 Medical Association Road
Darya Ganj
Sh. Adnan Ahmed 2445, Gali Chharree Wali, 713097 dt. 23/6/09
Banadari Sherafgon, Ballimarran,
Delhi -6
Sh. Shashi Paul 4942/53, Block H, Sham Lal 354052 dt.31/7/09
Marg, opp. Ansari Market Darya
Ganj
 List of Properties in which Parking Charges are not Deposited
Name & Address G-8 No. Area in SQ Parking
Sl. No. G-8 Date Meter Charges to be
Deposited

S.R.Vijay Kumar 353013 93.64 124541/-

1 Goyal,2802/19,G/Floor,Bedanpura, 31/3/08
K.Bagh
Sh. Hemant Bhutani 353010 200 266000/-
2. P.No.706,709, Church Mission Rd, 31/3/08
FatehPuri, N.Delhi-06
Sh.Anteryami Joshi, 53,Shyam Lal 353078 115 344425/-
3. Marg, Darya Ganj, Delhi 31/3/08

Sh.Rahul Gupta, G-4, G.Floor, Darya 353081 517 1548415/-

4. Ganj,Delhi 31/3/08

Sh.Prakash Chand 2072,Kalra Roshan 352077 350 465500/-

5. Kinari Bazar Delhi -06

6. Sh.Jasbir Singh Kumar, 765,Katranil 353061 108.7 144571/-

Basement, Ch.Chowk 31/3/08

7 Sh.Jasbir Singh Kumar, 765,Katranil 353060 108.7 144571/-

Basement, Ch.Chowk 31/3/08

8. Md. Zafar, 964 Matia Mahal Delhi-06 353051 29.7 39501/-

31/3/08

Sh. Rakesh Luthra, 84, G/floor, Sham 352003 323 967385/-

9. Lal Marg, Darya Ganj 31/3/08

Total : 4044909/-
(Rs. Forty lacs forty four thousand nine hundred nine only)

INTERNAL AUDIT OFFICER

ZAP/CZ
 List of Properties in which Conversion Charges are not Deposited
Name & Address G-8 No. Area in SQ Conversion Charges
Sl. No. G-8 Date Meter /Interest on conversion
chargesto be Deposited
Sh.Surender Agarwal,1194/12,Keshav 353045 93.64 103/-
1 Mkt.Maliwara 31/3/08

Sh.Surender Agarwal,1194/12,Keshav 353044 200 57/-

2. Mkt.Maliwara 31/3/08

M/s Kalra Jewellers, 1117,Chatta 353041 115 80/-

3. Madan Gopal,Ch.Chowk 31/3/08

Sh.Ravi Kalra, Maliwara 353043 517 190/-

4. ChandniChowk 31/3/08

M/s Rajasthan 353042 108.7 111/-

5. jewelers,1061,Maliwara ch.chowk 31/3/08

6. Ranjana Jain,1351A,Vawdwara, 353063 108.7 1604/-

Maliwara, Ch.Chowk 31/3/08

Sh.Jasbir Singh Kumar,765,Katranil 353061 108.7 1013/-

9 Basement, Ch.Chowk 31/3/08

Sh.Shobit Arya, 352055 230 1074/-

10 4779/23,G/Floor,Ansari Rd,Darya
Ganj

11. Sh.Manish jain, 4435-IInd floor, 352077 ----

Ansari Rd. Delhi 723/-

Total : 4955/-

(Rs. Four thousand nine hundred fifty five only)

INTERNAL AUDIT OFFICER

ZAP/CZ