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CAG puts Nitin Gadkari’s Purti Group firm under scanner for financial irregularities

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By NewsGram Staff Writer

The Controller and Audit General (CAG) presented a report in Lok Sabha yesterday, charging Purti Sakhar Karkhana Limited (PSKL) of non-compliance of interest subsidy conditions.

The interest subsidy was granted to it by the Ministry of New and Renewable Energy and the report named Union Minister Nitin Gadkari as one of the “promoters and/or directors” of the firm.

The report on ‘Financing of Renewable Energy Projects by Indian Renewable Energy Development Agency Limited (IREDA)’ stated that the ministry had sanctioned Rs 1.92 crore as interest subsidy to the company and released Rs 1.37 crore to IREDA in June 2004, on the basis of net present value of PSKL.

The firm, according to the report, failed to meet the conditions of the interest subsidy extended to it. The project employed 100% coal based operations as against the upper limit of 25% allowed under subsidy schemes. The company also failed to meet the condition stipulating that the project should continue for at least ten years after completion. 

Moreover, CAG found that although the load had become a non performing asset in March 2007 the actual benefit from the subsidy amounting to Rs 1.66 crore was passed on till December 2009.

However the CAG report said that IRDEA management stated in April 2014 that PSKL had settled its account and paid the dues. IRDEA also claimed that it is not necessary if an account becomes a non performing asset, then interest subsidy is not to be passed.

“The reply of the management may be seen in the context that avoiding default on repayment by the borrower and limited deviation from renewable energy sources (up to 25 per cent) were important components of the scheme, and as such, IREDA cannot change/interpret specific conditions for grant of subsidy of GOI schemes. Further, the OTS proposal was sanctioned on the ground that the project was no longer an RE (renewable energy) project,” the CAG report stated.  

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AAP’S Media Spend Is Four Times That Of Previous Government: RTI Reply

A 2017 Comptroller and Auditor General (CAG) report found that the Delhi government had spent 86 percent of the total budget for its media campaign celebrating the completion of AAP's one year in power in 2016

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Picture of Arvind Kejriwal addressing a rally. Wikimedia Commons
  • The average annual expenditure of the AAP government on advertisements from April 2015 to December 2017 was Rs 70.5 crore
  • The AAP government’s spending on advertisements increased by about 300 percent compared to the Congress government
  • A 2017 Comptroller and Auditor General (CAG) report found that the Delhi government had spent 86 percent of the total budget for its media campaign celebrating the completion of AAP’s one year in power in 2016

The AAP government has spent an average of Rs 70.5 crore annually in the past three years on advertisements — four times more than the previous government’s expenditure on print, electronic and outdoor advertising, according to an RTI reply.

In the first year after assuming office in February 2015, the current government spent Rs 59.9 crore on advertisements, Rs 66.3 crore the next year and Rs 85.3 crore up to December 31, 2017, the Directorate of Information and Publicity (DIP) said in reply to an RTI application by IANS.

The average annual expenditure of the AAP government on advertisements from April 2015 to December 2017 was Rs 70.5 crore. The Congress’ average was Rs 17.4 crore in the last five years of its rule (2008-2013).

Also Read: AAP welcomes BJP’s stand on inter-faith marriages

According to the DIP, the expenditure includes, among others, advertisements with photos of the Chief Minister and other ministers in newspapers and hoardings, commercial spots on TV and radio, and tender notices published in newspapers.

For instance, when the AAP government completed its first and second anniversary in 2016 and 2017, leading newspapers in the capital carried full-page advertisements, highlighting the achievements of the government.

The Delhi government approached the High Court and the matter is currently pending there. Wikimedia Commons
The Delhi government approached the High Court and the matter is currently pending there. Wikimedia Commons

In the run-up to celebrating its three years in office, the government in the first two weeks of February carried advertisements flashing pictures of the Chief Minister or other ministers. The highlights included the inauguration of community toilets, excellence awards distribution for students, a government meeting on “smart gaon”, and invitation of applications for scholarship schemes.

The AAP government’s spending on advertisements increased by about 300 percent compared to the Congress government.

Also Read: Blow for Kejriwal: EC recommends disqualification of 20 AAP MLAs

But the average advertisement rate charged by a leading English newspaper, comparing the Congress government and AAP government periods, has increased by about 17 percent, according to DAVP.

For the same period, the average rate charged by another leading English newspaper has increased by about 35 percent.

A 2017 Comptroller and Auditor General (CAG) report found that the Delhi government had spent 86 percent of the total budget for its media campaign celebrating the completion of AAP’s one year in power in 2016.

According to the DIP, the expenditure includes, among others, advertisements with photos of the Chief Minister and other ministers in newspapers and hoardings, commercial spots on TV and radio, and tender notices published in newspapers. Wikimedia Commons
According to the DIP, the expenditure includes, among others, advertisements with photos of the Chief Minister and other ministers in newspapers and hoardings, commercial spots on TV and radio, and tender notices published in newspapers. Wikimedia Commons

The auditor pulled up the government for using the name of the party in the advertisements.

Last year, the government came under an opposition attack after Lt. Governor Anil Baijal asked the AAP to cough up Rs 97 crore spent on advertisements, allegedly to promote the party instead of the government. The LG order was based on a report by the Committee on Content Regulation in Government Advertising (CCRGA).

Also Read: 5 Years of AAP: How Society Has Been Backstabbed by ChandaChor Kejriwal

The regulatory authority asked the Delhi government to assess the expenditure in issuing “those advertisements/advertorials in which the name of the Aam Aadmi Party is mentioned” and other factors.

The Delhi government approached the High Court and the matter is currently pending there.

Delhi government spokesperson Nagendar Sharma said he has “no comments” to offer on the increase in expenditure.

The auditor pulled up the government for using the name of the party in the advertisements. Wikimedia Commons
The auditor pulled up the government for using the name of the party in the advertisements. Wikimedia Commons

Delhi Congress President Ajay Maken said: “They (AAP) are using the power of advertisements to put pressure on TV (channels) and newspapers. They are doing it ruthlessly”.

BJP MLA and Delhi Assembly Leader of Opposition Vijender Gupta termed the government’s spending on advertisements as “irrational”. “Misuse of public money in this way is completely unjustified and unethical,” Gupta told IANS. (IANS)