'Failure' of some missions in applying revised exchange rate for local currencies led to revenue shortfall: Par panel

New Delhi, Feb 4 (PTI) A parliamentary panel has flagged "failure" of several Indian missions and posts abroad in extending the "revised rate of exchange" for local currencies as prescribed by the MEA for calculating visa fee in the Overseas Citizen of India (OCI) scheme, which led to revenue shortfall of Rs 58.23 crore during 2017-2020.

The Public Accounts Committee (2025-2026) has mentioned this in its report presented to Lok Sabha on Wednesday.

"The Committee also desire that accountability be fixed for such procedural lapses resulting in financial loss to the exchequer so to avoid its recurrence in future," it says.

The report, titled, 'Short collection of fees due to application of incorrect exchange rate in fixing the fees for Overseas Citizenship of India Card scheme and Irregularities in setting up of Indian Cultural Centres by Indian Missions at Washington and Paris', is based on "Para. 2.1 and 2.2 of Comptroller and Auditor General of India (C&AG) report" of 2022 relating to the Ministry of External Affairs, it says.

The CAG report has highlighted "failure of the missions/posts in extending the revised rate of exchange (RoE) for local currencies" as prescribed by the MEA for calculating visa fee in the OCI scheme, and lack of monitoring by the ministry in ensuring compliance of its directions, the report says.

"This led to short levy of fees being charged by the missions/posts in issue of OCI cards leading to loss of Rs 58.23 crore," it says.

The Public Accounts Committee, led by Congress MP K C Venugopal, says it selected the the subject for examination and took oral evidence of the representatives of the MEA on the subject under examination on December 12, 2024.

And, based on the oral evidence and written replies, the Committee examined the subject in detail during its term 2025-26.

"In Audit Para 2.1, the Committee note that the Ministry of External Affairs directed Missions and Posts to rationalise the visa fees structure based on the revised Rate of Exchange (RoE) for calculation of visa fees ipso facto applicable to the Overseas Citizen of India (OCI) scheme.

"Seventeen Missions in Euro Zone Countries and three Missions in the UK failed to comply with the revised RoE, resulting in non-compliance with the Ministry’s directives, the panel flags.

The Committee has noted that non-application of the revised RoE by the missions, led to "cumulative loss of Rs 16.26 crore revenue between April 1, 2017 and March 31, 2020". Similarly, the Committee observe from audit findings that the High Commission of India in London deviated from the prescribed RoE, resulting in a "loss of revenue of Rs 41.97 crore between February 2017 and March 2020," it adds.

The "inconsistent application of the RoE and the lack of clear, uniform instructions contributed to a cumulative revenue shortfall of Rs 58.23 crore," the Public Accounts Committee said.

The parliamentary panel has observed, "It is very clear that the MEA acted only after Audit observation shows the lackadaisical approach to matters of financial propriety by Missions abroad." The ministry's "inaction is a clear procedural lapse which has resulted in loss of public money," it flagged.

The panel says it does not accept the ministry's contention, and adds that this approach shows its "lack of seriousness on financial matters." The Committee therefore, recommends that any clarifications issued by the ministry applicable to all missions should be addressed to all concerned missions and posts and departments to "ensure uniformity in implementation".

The panel has further desired that the MEA must "ensure that all updates on fee calculations and revised RoE are communicated promptly, to all its Mission/Posts." The committee also desires that "accountability be fixed for such procedural lapses resulting in financial loss to the exchequer so to avoid its recurrence in future," the report says.

The panel has observed that "17 missions/posts in the Euro Zone Countries (EZC) did not carry out the revision of fees for the issue of OCI Cards at the revised rate of exchange of USD 1= Euro 0.95 w.e.f 1 April, 2017. The Committee note that the Ministry provided clarification only to those missions which sought clarity while others continued to charge the old fees and it was only in January 2020, the Ministry informed all Missions in the EZC to comply with its directions regarding revised Rate of Exchange".

As a result of this, there was a "cumulative loss of revenue of Rs 16.26 crore from April 1, 2017 to March 31, 2020. The committee fail to understand why clarification was issued only to certain missions which had applicability for all the missions in the EZC," it said. PTI KND ZMN