New Delhi, Jul 5 (PTI) A CAG audit report tabled in the Delhi Assembly on Tuesday flagged "serious deficiencies" on the part of DSIIDC in the operation and maintenance of Bawana and Narela industrial areas.

The work of re-development and operation and maintenance of the two industrial areas for a period of 15 years was allotted to two concessionaires by the Delhi State Industrial and Infrastructure Development Corporation (DSIIDC) Limited, according to the Comptroller and Auditor General (CAG) report for the year ending March 2019.

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"The audit of operation and maintenance of these two industrial areas revealed serious deficiencies on the part of DSIIDC with respect to ensuring proper discharge of functions by the two concessionaires as per the concession agreement," said the report.

The DSIIDC neither had the complete details of the charges due and paid by each industrial unit, nor ensured the required certification of income and expenditure by the statutory auditors before transferring the amount collected to concessionaires, it said.

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"The concessionaires were given undue financial benefit by allowing escalation of monthly maintenance charges without obtaining the details of expenditure incurred by them on operation and maintenance activities," it stated.

There was "unauthorised collection" of water and sewer connection charges by the concessionaire in the Narela industrial area and delay in adjustment of the same. Besides, there was delay in adjustment of parking charges also, said the report.

Further, there was delay in adjustment of water and sewer connection charges as well as electricity and water bills in the Bawana industrial area, found the report.

"Improper monitoring by DSIIDC led to adverse environmental implications - non disposal and accumulation of municipal solid waste in these industrial areas leading to choking of drains and sewers, discharge of industrial effluents directly into storm water drains," it said.

Third party engineer failed to highlight the repeated occurrences of deficiencies in operation and maintenance and recommending recovery of penalties but DSIIDC did not take any action against him in the absence of any penal clause in the agreement, it said.

The report further said that "failure of DSIIDC to timely assess the income tax liability and consequent non-payment of advance tax resulted in avoidable payment of interest of Rs 3.74 crore.

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