Audit report of FY 2022-23 flags irregularities in MCD, waste and ads hit most

New Delhi, Aug 21 (PTI) The MCD suffered losses of over Rs 275 crore due to non-implementation of the solid waste management system and poor advertising revenue generation, said a 2022-2023 audit report.

The report, covering corporation's seven departments, listed various alleged irregularities, including non-recovery of house tax, wrongful release of payments and doubtful execution of work, among others, leading to total losses of over Rs 300 crore.

Among the losses, the highest worth of Rs 275 crore was caused alone by non-implementation of Solid Waste Management Bye-Laws and short receipt of advertising revenue from different agencies.

The audit, covering the fiscal year, was tabled in the standing committee meeting on Wednesday.

The MCD also left Rs 53.52 crore of sanitation mechanisation funds unutilised and spent nearly 85 per cent of its total allocation on staff salaries, leaving little for infrastructure or service improvements.

In the case of advertisement revenue, the audit pointed to a shortfall of Rs 122.39 crore. Despite a 2017 Outdoor Advertisement Policy mandating a 50 per cent revenue share with the corporation, the Delhi Transport Infrastructure Development Corporation Ltd (DTIDCL) shared only 25 per cent, leading to a loss of Rs 40.42 crore.

At the Indira Gandhi International Airport, advertisers continued to operate under outdated agreements, resulting in another shortfall of Rs 81.97 crore. The corporation did not act despite repeated directions from the High Court and the Lieutenant Governor, said the report.

Property tax collections were also marred by inefficiency and negligence. Incorrect assessments, delayed follow-ups and non-pursuance of defaulters led to a loss of Rs 3.77 crore, including an underpayment of Rs 1.26 crore by Deshbandhu College due to a wrong levy rate and miscalculation of covered area. Several other cases involved short deposits linked to errors in the application of Use and Occupancy Factors.

The Engineering Department was found to have misused or irregularly accounted for over Rs 12 crore. Payments were made without verifying delivery slips or quality control checks, while unauthorised Ready Mix Concrete (RMC) works worth Rs 75.27 lakh were carried out inside private societies. In the Karol Bagh Zone, faulty drain construction alone resulted in a loss of Rs 41.18 lakh.

The Building Department suffered losses of Rs 9.5 crore due to short realisation of one-time conversion charges and under-recovery of fees related to additional floor area ratio and parking. Dishonoured cheques and errors in applying colony categories further compounded the financial loss.

The audit also highlighted procedural lapses in the National Pension System (NPS) contributions, where delays in remitting employees’ contributions led to a loss of Rs 34.06 lakh and affected timely crediting of amounts into subscribers’ accounts.

The report paints a picture of systemic failure across departments, citing widespread disregard for financial regulations, use of invalid documents, lack of verification, and failure to collect legitimate dues. PTI NSM AMJ AMJ