Audit Reports
Uttar Pradesh
Report of 2010 - Financial Audit on Urban Local Bodies, Government of Uttar Pradesh
Overview
Adarsh Nagar Yojna a symmetrical scheme with Jawaharlal Nehru National Urban Renewal Mission and Urban Infrastructure Development Scheme for Small and Medium Towns (UIDSSMT) was launched by the Government of Uttar Pradesh (The Government) on 24th January 2008. ULBs having population below one lakh not covered under UIDSSMT and having fulfilled the three prerequisite conditions, viz (i) Achieved over and above 80 per cent income against the yearly target set forth by the Government (ii) Levied water charges as prescribed by the Government (iii) Ensured levy of house tax with coverage of at least 80 per cent houses and the rates have been revised during last five years were eligible to be considered for selection under the scheme by State Level Selection Committee. The scheme aims to encourage reforms in Urban Local Bodies and to develop infrastructure facilities and public amenities.
The sharing of funds was in the ratio of 90:10 between the State Government and ULBs concerned. The Government allocated Rs.328.67 crore (2007-11) for implementation of the scheme in the state.Main points observed during audit were as under.Three ULBs already covered under UIDSSMT, one ULB having population above one lakh and 42 ULBs not fulfilling prerequisite conditions, were selected under the scheme.The projects sanctioned and executed under the scheme were not approved by District Planning Committees and were not integrated into District Development Plans.
The memorandum of agreement signed between the Government and the selected ULBs did not specify the reforms which were to be implemented year wise resulted in partial implementation of reforms.Irregular transfer of funds amounting Rs.30.00 crore to Personal Ledger Account of UP Jal Nigam during the year 2007-08 without sanction of projects by State Level Selection Committee.Sanctioned projects amounting Rs.1.83 crore could not be executed either due to poor planning, or due to non availability of land and non coordination among the line departments.There were huge variations in appraised cost, estimated cost and actual cost of execution of the projects due to unrealistic approach of the ULBs as well as of the Government in proposing and sanctioning the projects.Three drains with an estimated cost of Rs.36.74 lakh were being constructed without financial and technical sanction of SLSC. in Nagar Panchayat,Bharwari, Kaushambi.