Karnataka

CAG flags financial lapses by Bangalore University

The Comptroller and Auditor General (CAG) of India has highlighted several lapses in Bangalore University’s management and said improper financial management, misappropriation of records and funds in the university resulted in loss of ₹87.87 lakh.

The CAG’s compliance audit report, which was tabled in the Legislative Assembly on Wednesday, said there was misappropriation of fees by the staff of Canara Bank School of Management Studies of the university. It said that the admission register did not contain the details of 10 students for 2016-17 and one student in 2017-18.

The audit attempted to verify the remittances of fees collected from students admitted to the MBA evening course and observed that the copies of challan/fee receipt amounting ₹12.97 lakh in respect of 38 students were neither on record nor could be traced to bank statements/university accounts resulting in short remittance of fees.

The CAG found lapses in operation and management of bank accounts by the varsity and said action of the BU to open a current account with a private bank and to incorporate terms and conditions unfavourable to the university resulted in loss of interest revenue of ₹55.22 lakh.

The university also suffered loss of revenue of Rs 23.21 lakh due to non-realisation of demand drafts (DDs). DDs of Rs 8.66 lakh drawn in the name of the Finance Officer (BU), pertaining to two departments (Physical Education and CBSMS) relating to ground fee for utilisation of the university playgrounds and admission fees paid by the second year MBA students could not be traced in the bank statements, the report said.

Stamp and Registration

The CAG found many lapses in the Stamp and Registration Department and said misclassification of documents of lease, sale agreement, and powers of attorney within different sub-clauses under the respective Articles in two Sub-Registrar officers led to short levy of stamp duty and registration fee in six cases amounting to ₹22.83 crore.

Non-disclosure of amounts received as advance, and suppression of facts such as existence of building, plant and machinery in 13 Sub-Registrar offices led to short levy of stamp duty and registration fee in 25 cases involving ₹10.14 crore.

Commercial Taxes

Non-levy of penalty under Section 72 (1) of the Karnataka Value Added Tax Act, for delay in payment of tax by 208 assessees and under Section 74 (4) for non-filling of Form VAT-240 by 7,346 assessees amounting to ₹32.72 crore has been reported by CAG. The report said short levy of taxes on sale of liquor by 30 bars and restaurants in urban areas from 2014 to 2017 amounted to ₹6.15 crore.


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Printable version | Oct 19, 2021 10:34:00 AM | https://www.thehindu.com/news/national/karnataka/cag-flags-financial-lapses-by-bangalore-university/article36619502.ece

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