Gujarat Government Favoured Reliance and Adani, Reveal CAG Reports

The Comptroller and Auditor General has slammed Gujarat government for mismanagement of the state's financial resources for the financial year ended 31 March 2013.

Gujarat mapOfficial Gujarat state Web page

The Comptroller and Auditor General (CAG), India's apex auditing agency has slammed Gujarat government in its five different reports, for mismanagement of the state's financial resources for the financial year ended 31 March, 2013.

The reports were presented in the assembly on Friday, which revealed that the state government port's policy of 1995 was not being implemented 15 years later.

In its audit report on the 'Economic Sector', CAG noted that Gujarat Maritime Board applied incorrect wharfage fees under the Captive jetty Agreement with Reliance Petroleum Limited, which led to the recovery of ₹649.29 crore.

CAG also revealed that the Gujarat Urja Vikas Nigam Limited did not fix delivery points after the finalization of power purchase agreement, which led to undue benefit of ₹587.50 crore to Essar Power Gujarat Limited, according to The Times of India.

CAG said the non-monitoring of the construction quay in phase 1 of Adani Group-owned Mundra port led to short recovery of ₹118.12 crore. Moreover, it was also revealed that Gujarat government made excessive payments for solar power in the state.

Additionally, the report about the state's micro-financial management, observed,"... the non-submission of utilization certificates of Rs 9,121.46 crore indicated the lack of proper monitoring by government departments in utilization of grants."

It also condemned the Gujarat government for poor financial management and budgetary control and pointed that in two instances, grants amounting to ₹13049.67 remained unused.

The Highlights of CAG's report regarding Gujarat: