A complaint has been filed before the Superintendent of Police, Vigilance & Anti-Corruption Department, Manipur, seeking a detailed vigilance enquiry into the alleged non-deposit and continued retention of Value Added Tax (VAT) deducted from contractors’ bills by officials of the Manipur State Rural Roads Development Agency (MSRRDA).
The complaint was filed by Khumanthem Dhanachandra Singh, seeking a detailed vigilance enquiry into the deduction, retention and non-deposit of Value Added Tax (VAT) into the State Government Account by officials of the Programme Implementation Units (PIUs) of MSRRDA, and to identify and fix responsibility upon the officials and other persons found responsible.
According to the complaint, the issue came to light through findings contained in the Audit Report on General, Social, Economic and Revenue Sectors for the year ended 31 March 2023, Government of Manipur, as well as inspection findings of the Office of the Principal Accountant General (Audit), Manipur, and information obtained under the Right to Information Act, 2005.
The complaint points out that the Audit Report recorded the deduction of VAT at the rate of 5.6 per cent amounting to Rs. 215.77 lakh from 95 contractors’ bills relating to 34 ongoing works, involving a total bill amount of Rs. 3,853.34 lakh. The deducted amount, according to the audit finding cited in the complaint, was retained in the bank account of the Empowered Officer, MSRRDA, instead of being deposited into the State Government Account.
The complaint has also drawn attention to an earlier inspection by the Office of the Principal Accountant General (Audit), Manipur, during inspection of the accounts and records of the Executive Engineers of PIU-I, PIU-II and PIU-III, RED/MSRRDA for the period from April 1, 2017 to March 31, 2020.
The inspection had reportedly observed that VAT at the rate of 5.6 per cent amounting to Rs. 6,43,14,668 had been deducted from bills relating to several ongoing works and retained in the bank account of the Empowered Officer, MSRRDA, instead of being deposited into the Government Account.
The complaint further states that, as per the latest information available to the complainant, the deducted VAT amount has still not been deposited into the State Government Account. It has consequently sought an investigation into the present status of the amount and the circumstances surrounding its continued non-deposit.
The complainant has requested the Vigilance & Anti-Corruption Department to call for and examine the complete original records from the Rural Development & Panchayati Raj Department, MSRRDA, PIU-I, PIU-II and PIU-III and other concerned offices. These records would include bills, vouchers, VAT deduction statements, cash books, ledgers, bank statements, challans, deposit records, audit and inspection records, correspondence and other connected documents.
The complaint has also requested that the relevant bank account records of the Empowered Officer, MSRRDA, be examined to trace the receipt, retention, transfer and ultimate disposition of the deducted VAT amounts.
The complainant has urged the Vigilance & Anti-Corruption Department to identify the officials responsible, determine whether the non-deposit resulted in any wrongful gain or loss to the State exchequer, and take or recommend appropriate action in accordance with law against officials found responsible.
The complaint also seeks appropriate steps for recovery and deposit of any Government revenue found upon enquiry to have remained undeposited, together with applicable interest and other statutory dues, through the competent authority.
The complainant has stated that the complaint is based on official audit records, inspection findings and documents obtained under the RTI Act, 2005, and has been submitted in the interest of transparency, accountability and protection of public revenue.
