Timely intervention averted impending loss of Rs 46.75 cr: CAG
New Delhi: Government auditor CAG on Thursday said an "impending loss" of Rs 46.75 crore as interest due to the HRD Ministry extending a loan to a company could be averted because of its timely intervention.
It said the ministry had failed to follow the general financial rules as suggested by the Expenditure Finance Committee while extending a loan of Rs 100 crore to IIT Madras research park, a company set up under the Companies Act.
The committee, it said, had observed the loan should bear an interest rate as applicable for investment loans to public sector undertakings which was 11.5 per cent per annum.
"... The agreement executed between the ministry and the company in February 2010 provided for levying an interest rate of three per cent per annum against the applicable rate of 11.5 per cent," CAG said in its report ended March 31, 2011 tabled in Parliament today.
It said the repayment of the loan was to commence from 2013-14 for a period of 10 years.
CAG said after the issue was pointed out, "the Ministry replied in June 2012 that the agreement with the company had since been revised and the latter had agreed to pay the interest at the applicable rate of 11.5 per cent, thus an impending loss of Rs 46.75 crore could be averted".
The auditor, in its report on the I&B Ministry, said
rental charges amounting to Rs 60.73 lakh were not recovered by the Films Division, Mumbai from discontinued and closed down theatres.
The cinema houses were to pay rental charges to the division on fixed percentage of their net collections for exhibiting documentaries, news-based and animation films provided by the division.
"Audit scrutiny revealed that between June 2000 and July 2009, 20 and 15 theatres were either discontinued or closed down in Maharashtra and Gujarat respectively and the total outstanding in respect of these 35 theatres on account of rental charges since 1996 was Rs 60.73 lakh," the CAG said.
The Ministry stated that the theatre had closed down without intimating the Film Division.
It further stated that the district magistrates of the districts concerned who were the licencing authorities, had been requested not to renew the licences of these theatres and recover the pending dues, the CAG said in its report.
More from India
More from World
More from Sports
More from Entertaiment
- IAF Mirage fighter plane lands on Yamuna Expressway!
- 'Maggi' under regulatory scanner for excess amount of lead, MSG
- Watch: Michelle Obama's 'Gimme Five' fitness video
- When Subramanian Swamy shocked people at a wedding!
- Mumbaikars join hands to save Pakistani teen with rare illness
- Mumbai: Diamond export company denies job to Muslim youth
- Aapke Sitare: Astro prediction for May 21, 2015
- PM Modi speaks at Golden Jubilee celebrations of poet Dinkar’s works
- Mirage 2000 fighter jet landing was part of capability demonstration: IAF
- DNA: IAF Mirage 2000 fighter plane lands successfully on Yamuna expressway
- DNA: Osama documents show 'Indian brother in Madinah' financed al Qaeda
- Coal scam: Naveen Jindal, Madhu Koda and others get bail
- ISIS executes Syrian fighter using anti-tank rocket launcher
- Vadodara: Policemen seen dancing with bar girls
- PM Modi's key campaign team member may join Nitish Kumar
- RBSE (rajresults.nic.in) Class 12th science and commerce results 2015: Rajasthan Board Class 12th XII exam results 2015 to be announced today at 4 PM
- CBSE Class 10 Results 2015 to be announced today?
- IAF jet lands on Yamuna expressway
- Check Jharkhand Board jac.nic.in: Class 12th Art Results 2015 declared
- Fawad Khan doesn’t want intimate scenes with Sonam Kapoor?
- Log on to apeamcet.org AP EAMCET Results 2015: Andhra Pradesh EAMCET Marks and AP EAMCET Ranks 2015 declared
- We hire only non-Muslim candidates, diamond export firm tells Muslim youth
- Is MSG in 'Maggi' noodles harmful for you?
- Mumbai firm booked for denying Muslim MBA graduate job on religious grounds, probe ordered
- New IPL rules could see Chennai Super Kings lose MS Dhoni
- Jayalalithaa makes public appearance, meets Governor: As it happened
- `Piku` hits jackpot, does Rs 100 crore business worldwide
- SSLC (tnresults.nic.in) Tenth 10th Results 2015: Tamil Nadu Board Class 10th X Higher Secondary exam results 2015 to be announced today at 10 am
- Anurag Kashyap to bid goodbye to India, settle in 'cinema-friendly' France!
- SSLC (tnresults.nic.in) Tenth 10th Results 2015: Tamil Nadu Board Class 10th X Higher Secondary exam results 2015 to be announced shortly