New Delhi: Country's official auditor CAG on Tuesday said National Textile Corp (NTC) did not follow guidelines for determination of reserve price for selling unviable mills causing losses for more than Rs 185 crore.
"Reports of consultants were not evaluated resulting in
under fixation of reserve price by Rs 493.46 crore in five
cases," the Comptroller and Auditor General of India said in
its report tabled in the Parliament today.
The CAG blamed NTC for not following the guidelines of
the Board for Industrial and Financial Reconstruction (BIFR)
or government for determination of reserve price in certain
cases.
"Tender documents had certain irregularities resulting in
loss of Rs 185.10 crore in three cases," it said adding that
properties were sold below registration or circle rates
resulting in loss of opportunity to earn Rs 10.43 crore in six
cases.
The auditor also pointed out that properties were sold
below reserve price and without following the tender process
in contravention of BIFR/GOI guidelines.
Besides, also observing that no prescribed procedure for
valuation of building structures was in existence, it said
there were inconsistencies among the guidelines issued by
BIFR/GOI and the procedure laid down by NTC.
According to various revival schemes approved by the BIFR
and of the 119 NTC-managed mills, 77 unviable mills were to be
closed, 40 viable mills were to be revived and two mills in
Pondicherry were to be transferred to the state government.
The scheme was self-financing, the funds realised from
sale of surplus assets were to be utilised for revival/
modernisation, CAG said.
Bureau Report
First Published: Tuesday, July 28, 2009, 22:32