Northeast

Official fails to collect Rs 10.56 crore mineral cess in Meghalaya

The DMO, Jowai, Meghalaya failed to collect cess amount from two cement companies - GVIL and GCL.

ByNNN/Shillong

Updated 26 Sept 2022, 7:12 pm

(Representational Image: Unsplash)
(Representational Image: Unsplash)

 

The Divisional Mining Officer (DMO), Jowai in Meghalaya, has failed to collect mineral cess amounting to Rs 10.56 crore from cement companies in Jaintia Hills region. This was revealed by the Comptroller and Auditor General of India (CAG) in its report on revenue sector for the year ended March 31, 2020.

The report said test check of records of the DMO Jowai relating to collection of cess revealed that during the course of excavation for civil foundation work and development of plant site by two cement companies – Green Valley Industries Ltd (GVIL) and Goldstone Cements Ltd (GCL), limestone to the tune of 25,93,174 MT was extracted.

The Mining and Geology department allowed GVIL in July 2017 and GCL in May 2018 to utilise the extracted limestone as raw material for manufacturing of clinker and cement.

It was observed that the DMO, Jowai had collected an amount of Rs 3.68 crore against leviable cess of Rs 15.55 crore from the two cement companies. The DMO, Jowai failed to collect the remaining amount of Rs 11.87 crore from the cement companies (GVIL Rs 4.64 crore and GCL Rs 8.51 crore), it said.

On this being pointed out in December 2019, the DMO, Jowai stated that demand notices were issued in February and August 2020 to the companies to clear the due.

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The DMO, Jowai informed the Audit that GVIL has cleared the outstanding due of mineral cess of Rs 3.36 crore between February and March 2021.

In respect of GCL, the DMO, Jowai admitted that the amount of Rs 8.51 crore is pending as in February 2022.

Mention was made in the CAG report on revenue sector for the year ended March 31, 2018 – regarding short collection of mineral cess on limestone.

In the said report, it was recommended that the state government should strengthen the system of recording of minerals transported through check-gates and should fix responsibilities on the erring officials for the revenue leakage.

System should be in place for periodic reconciliation of figures of transport permits issued and validated at both forest and mining check-gates after ascertaining the reported figures of land custom stations (LCSs).

The report said scrutiny of the record of the DMO, Jowai revealed that during 2018-19, the DMO Jowai had realised a total amount of Rs 1.97 crore as mineral cess on 3,28,550 MT of limestone.

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However, cross-check with the records of the Divisional Forest Officer (Territorial Division), Jowai revealed that a total of 6,69,978 MT had passed through the forest check gates during the same period for which cess of Rs 4.02 crore was realisable. However, cess of only Rs 1.97 crore was collected. Thus, there was short collection of mineral cess amounting to Rs 2.05 crore by the DMO Jowai.

The DMO, Jowai in its reply in February/October 2020 stated that the information from the DFO-TD, Jowai has been sought (in February/October 2020) for which is still awaited (till February 2022). This indicated absence of periodical reconciliation of figures of transport permits and validated at both forest and mining check-gates after ascertaining the reported figures of LCSs as recommended by Audit.

“Thus, the Divisional Mining Officer, Jowai failed to collect mineral cess amounting to Rs 10.56 crore from the cement companies,” the CAG said.

The matter was reported to the government in October 2021 and reminder issued on February 8, 2022 but reply is awaited till March, this year, it said.

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Tags:

meghalayaminingDMO Jowaicess collectioncement companiesJaintia Hills

NNN/Shillong

NNN/Shillong

Newmai News Network, Shillong, Meghalaya

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