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      Under-reporting of mineral exports costs Meghalaya treasury millions

      HP News Service by HP News Service
      March 23, 2021
      in Meghalaya
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      Deficiencies in the system of recording of minerals transported through check gates and then exported cost Meghalaya millions of rupees, the Comptroller and Auditor General (CAG) said in its report for the year ending March 31, 2019.

      There are 37 check gates that have been set up by the Forest Department to check illegal transportation of minor mineral and forest produce.

      The CAG audit looked at 10 check gates in February-March 2019 and cross-checked their records with that of the Land Customs Station in Dawki.

      The records of check gates in Erbamon (Pynursla) and Dawki under-reported the export of stones and boulders to the tune of 0.34 lakh cubic metres in 2017-18, which cost the state Rs 80.57 lakh in royalties not realised and Rs 43.65 lakh in contribution to the Meghalaya Minor Mineral Reclamation Fund (MMMRF).

      For the check gate in Majai-Bholaganj, there was under-reporting of 0.34 lakh cubic metres of limestone, which cost the state Rs 27.20 lakh in royalties and Rs 21.42 lakh in MMMRF contributions.

      The under-reporting in both cases amounts to Rs 1.73 crore.

      These are not the first such instances. In a case of under-reporting from 2016-17, 1.05 lakh cubic metres of boulders were exported to Bangladesh through the Dawki station, resulting in a loss of revenue amounting to Rs 3.89 crore. This was mentioned in the audit report of March 2018 and discussed in the Public Accounts Committee held in January 2020 but no action taken was intimated to the CAG.

      In its recommendation, the CAG said that the department might consider establishing a system of “cross verification with the Land Customs Stations in case of export of minerals. They may fix responsibility on the erring officials for the revenue leakage. There should also be regular reconciliation of figures of transport permits issued and validated at Forest Department check gates and Land Customs Stations.”

      HP News Service

      HP News Service

      An English daily newspaper from Shillong published by Readington Marwein, proprietor of Mawphor Khasi Daily Newspaper, who established the first Khasi daily in 1989.

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