The Comptroller & Auditor General of India (CAG) urged the mines department of Odisha government to increase efficiency of its revenue recovery mechanism to ensure that it can recover at least the amount involved in the accepted cases.
According to a recent report of the auditor, arrears of mining receipts stood at Rs 1,844.92 crore (as on March 31, 2012).
This included Rs 9.31 crore outstanding for more than five years, Rs 1,334.68 crore under dispute, Rs 1.62 crore locked up in litigation, Rs 1.46 crore under certificate proceedings, Rs 2.34 crore under write-off proposals and the remaining Rs 504.82 crore being recoverable. The auditor recently released the report on the state's revenue sector for the year ended March 31 2012.
According to the report, during 2006-11, there was short levy or non-realization of royalty, dead rent and surface rent with a revenue implication of Rs 1,685.72 crore in 1,297 cases.
Of these, the state mining department accepted audit observations in 759 cases involving Rs 918.08 crore, but recovered only Rs 9.72 crore in 164 cases.
The report pointed out that the average recovery of only 1.06 per cent, as compared to acceptance of objections, was very low and it ranged between 0.01 per cent and 28.34 per cent.