CHENNAI:Tamil Nadu government has sought a reply from Chennai Metropolitan Development Authority (CMDA) after a Comptroller and Auditor-General’s report brought to light irregularities in Employees Group Gratuity Scheme.According to information available with Express, the State government has ticked off Member-secretary of CMDA after an audit report highlighted that the rules for gratuity trust accounts were framed and adopted by trustees without government approval.
Questions have also been posed about whether the audited accounts have been submitted to Income Tax (I-T) authorities. As per Rule 13 (c), trustees have to furnish the audited accounts to the employer and I-T authorities. It is learnt that the government has sought copies of the audited accounts of the scheme for the last three years.
“CMDA has been asked to submit a report justifying how it has selected Life Insurance Corporation for implementation of Group Gratuity Scheme without following the Tamil Nadu Transparency in Tender Act, 1998 and Tamil Nadu Transparency in Tender Rules 2000,” said an official source.When contacted by Express for comments on the issue, a senior official refused to speak.
The audit report submitted to the State government has also stated that the Gratuity Scheme violated Town and Country Planning Act provisions and as such, the constitution of Trust and framing of rules and regulations carry no validity.
It is learnt from official sources that CMDA bypassing the government had cleared the proposal through its regular authority meeting at the behest of senior officials, including those in the finance and administration.
The government has also sought the authority resolution dated November 29, 2004 and August 10, 2005 besides the details of year-wise risk premium paid to Life Insurance Corporation and risk coverage settled by LIC to eligible employees from 2004 till date.
Details have also been sought on whether the premium has been regularly remitted to LIC besides details of gratuity payment settled for retired and deceased employees. Senior CMDA officials refused to comment on the issue.
According to official sources, since most of the former CMDA officials in the finance and administration are now in Tamil Nadu Real Estate Regulatory Authority, the finances should be audited to ensure there are no such irregularities and the laws governing TNRERA are adhered to.
This comes in the wake of two Government Orders on remitting TNRERA registration fee in the bank account. The initial order by TNRERA on July 11 was that the registration fee was to be remitted under State Bank of India (State government account) or in any of the treasuries or sub-treasuries.
This GO was immediately amended stating that the fee has to be remitted in Indian Bank, CMDA branch, Egmore. “Why was the amount not being deposited in State government account or in treasuries when TNRERA is handling not only realty issues pertaining to the State but also of Andaman and Nicobar Islands,” wondered a former official.
Factfile
The Gratuity Trust Account framed and adopted by trustees without approval of government
The CAG has stated that constitution of the Trust and framing of rules and regulations carried no validity
TN has sought report from CMDA on how it has selected LIC for implementation of Group Gratuity Scheme without following Tamil Nadu Transparency in Tender Act, 1998 and TN Transparency in Tender Rules 2000
TN has sought copies of the audited accounts of the Gratuity scheme for last three years
TN has sought details on whether the Trust has been registered