CAG slams MEA for over Rs 30 crore in avoidable waste
Delay in finalising the licence fee for its office space in Akbar Bhawan in New Delhi with the NDMC by the MEA led to an avoidable expenditure of Rs 27 crores, the Comptroller and Auditor General (CAG) in its report on Monday said. The financial watchdog also flagged cases like not undertaking timely repairs in the Indian embassy in China, and its embassy in Denmark not adhering to the rental ceiling, which also caused wasteful and avoidable expenditure. Similarly, the delay by the Indian embassy and the MEA in Israel for acquiring a property there also led to unnecessary financial outgo, the report said.
The report tabled in the parliament lays cracks in the ministry's fiscal oversight, which include Rs 27.43 crore excess expenditure on unused space in Delhi, Rs 3.22 crore avoidable rent due to uninhabitable embassy housing in Beijing and others.
The report states that the ministry retained the unutilised space at Akbar Bhawan, New Delhi, for 15 months without formalising pro-rata license fees with the New Delhi Municipal Corporation for the space actually utilised by it, which resulted in excess expenditure of Rs 27.43 crore towards licence fee for unutilised space.
Though the Embassy of India, Beijing, China, had incurred significant expenditure on repairs and maintenance of 16 residential units constructed in 2011 in the New Chancery Premises, six residential units had become uninhabitable within a span of 10 to 13 years. Delay in carrying out necessary comprehensive repairs and renovation of these six vacant units resulted in avoidable rental outgo of Rs 3.22 crore up to February 2025. Moreover, the mission had made continued payment of heating charges for the Old Chancery Premises, which was not in use since 2014, leading to wasteful expenditure of Rs 74 lakh during the period 2015-16 to 2024-25, the CAG stated.
The Embassy of India, Copenhagen, in Denmark, had not adhered to the rental ceiling fixed by the ministry for hiring of leased accommodation for its officials, which resulted in excess expenditure of Rs 99.12 lakh.
The reports stated that the delay by both the Embassy of India, Tel Aviv in Israel and the ministry in undertaking pre-acquisition activities and according administrative approval and financial sanction for acquisition of a property within the extended timeline set by the seller led to termination of the deal and thereby, rendered expenditure of Rs 92.01 lakh towards professional and legal services associated to pre-acquisition activities unfruitful.
Further, it highlighted that the Regional Passport Offices of Goa, Mumbai and Pune did not claim exemption from electricity duty and tax of the Maharashtra Electricity Act, 2016 and the Goa, Daman and Diu Electricity Duty Act, 1986, which resulted in an irregular payment of Rs 1.47 crore.
It also stated that despite vacating the leased premises for the Regional Passport Office, Thane in 2017, the Regional Passport Office, Mumbai and the ministry did not finalise the surrender or alternate use of the property leased from the Maharashtra Industrial Development Corporation for over seven years, leading to avoidable expenditure of Rs 76 lakh along with pending liabilities of Rs 1.38 crore.
