MEGHALAYA:
The Report of the Comptroller and Auditor General (CAG) of India for the year ending March 31, 2022, has revealed that cess collected by the Directorate of Mineral Resources (DMR) as mandated under the Meghalaya Environment Protection and Restoration Fund (MEPRF) has not been routed through the Consolidated Fund of the state.
It may be pointed out that the MEPRF came into being as per orders of the National Green Tribunal (NGT) in March 2015 wherein it had directed the state government to collect 10 per cent of the market value of coal per metric tonne and the amount so collected to be deposited in the account titled as ‘Meghalaya Environment Protection and Restoration Fund (MEPRF)’ to be maintained by the state under the direct control of the Chief Secretary of the state of Meghalaya.
For this, approval had been conveyed by the government, which has authorised the DMR to open a separate Current Bank account for the MEPRF, under the direct control of the Chief Secretary, Government of Meghalaya.
Audit findings revealed that the cess collected by the DMR was being deposited in three nationalised banks (SBI, Axis Bank, and HDFC Bank) and investments made in fixed deposits in Axis Bank and HDFC Bank.
“As such, the collected Cess to the tune of 1,193.30 crores (excluding expenditure) during 2017-18 to 2021-22 has not been routed through the Consolidated Fund of the State,” the CAF report stated.
The CAG report stated that non-routing of the above receipts through the Consolidated Fund results in fissures, where such revenue receipts of the government escape the notice of the legislature while not being captured in the desired manner and also will not provide a true picture of the actual revenue vis-à-vis the expenditure of the state to determine the fiscal parameters.
The CAG report stated that, in compliance with the orders of the NGT, the Mining and Geology Department, Government of Meghalaya, had issued the Revised Guidelines of Meghalaya Environment Protection and Restoration Fund in August 2020.
The Revised Guidelines which was also approved with amendments by the NGT Committee, Meghalaya, categorically stated in clause 1 that the State Government shall notify institutional mechanisms consisting of District Level Executive Committees, Financial assistance for education, death benefits, funeral assistance, maternity benefits, insurance, marriage assistance, medical assistance, etc.
The administration of the Fund as a whole is being discharged by the DMR.