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LATEST NEWS UPDATES | Nagaland police faked Rs 4 crore bills: CAG

Nagaland police faked Rs 4 crore bills: CAG

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published Published on Apr 2, 2012   modified Modified on Apr 2, 2012
-The Times of India

Nagaland Police allegedly used fictitious bills to withdraw Rs 4 crore for the procurement of 1,750 fire extinguishers, the Comptroller and Auditor General (CAG) of India said in its annual report tabled in the recently-concluded Nagaland budget session.

The report said that the government had sanctioned the funds under major heads-arms and ammunitions-on the basis of the proposal submitted by the office of DGP, Kohima. The office of the DGP drew the entire amount from Kohima Treasury (South), enclosing a bill submitted by M/s SDS Electronics Pvt Ltd in Haryana.

The CAG said that a committee constituted by the DGP had also submitted a report stating that the stock had been 'physically verified' on November 30, 2007. The committee had certified that all the 1,750 fire extinguishers were procured from the same supplier and the DGP office's cash book revealed that Rs 4 crore was paid to them.

After a letter was issued to M/s SDS Electronics in May last year to ascertain the genuineness of the deal, the company responded by saying that it had no business interest in firefighting equipment.

The report added that the department had procured a SDS Electronics bill from a local dealer in August, 2011, as it was required for the sanction of funds. Though the amount was drawn in advance against the bill, supply order was given to a local firm M/s International Trading Company, Dimapur, as they were ready to supply the material on government-approved rates.

The report also revealed that while furnishing the replies, the department submitted Actual Payee Receipts (APRs) of the entire amount from M/s International Trading Company.

The CAG report maintained that the department's reply is not acceptable as all records indicate that the supply was made by M/s SDS Electronics and the entire payment was made to them. Also the department's stand that the material was received in part and payments were also made in part is not convincing.

The Times of India, 2 April, 2012, http://timesofindia.indiatimes.com/india/Nagaland-police-faked-Rs-4-crore-bills-CAG/articleshow/12498716.cms


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