INSPECTION REPORT ON THE RECEIPT AND EXPENDITURE ACCOUNTS OF THE

OFFICE OF THE DEPUTY COMMISSIONER, GREATER HYDERABAD MUNICIPAL

CORPORATION, JUBILEE HILLS CIRCLE, HYDERABAD, TELANGANA FOR THE YEAR
2019-20
Dates of audit:
30.09.2019 to 11.10.2019 (7 working days) and 21.11.2019 to 21.12.2019

PART – I
INTRODUCTION:
a) Overview: The Greater Hyderabad Municipal Corporation, discharges obligatory and discretionary
functions as per the provisions of the Greater Hyderabad Municipal Corporation Act, 1955 and provides
civic services and infrastructure facilities to the citizens of the twin cities of Hyderabad and
Secunderabad.
Greater Hyderabad Municipal Corporation (GHMC) was formed in April 2007 by merging 12
Municipalities and eight Gram Panchayats surrounding the area of the then Municipal Corporation of
Hyderabad (MCH) Vide G.O.Ms.No 261.MA&Ud (Ele.II ) Dept. Dt 16.04.2007. Subsequently, the
GHMC was for administrative purposes, divided into 5 Zones with 18 Circles. However, basing on the
population Census 2011 and the recommendations of Expert Committee for rationalizing the staffing
pattern in GHMC, the municipal body was further reorganized in the year 2013 with 30 Circles under 5
Zones, each zone comprising of 6 circles each. Vide G.O.MS.No 156 MA&UD (A1 ) Dept Dt
09.04.2013.. The new urban agglomeration sprawls across 650 square Kilo Meters covering a population
of 6.7 millions.
Government issued orders creating one more Zone in addition to the existing 5 zones vide Govt
Memo No B 8257GHMC.I2017-2 MA&UD Dept. Dt 25.04.2018. The Central Zone under which Jubilee
Hills Circle originally falls, comprised 8 Circles, were reorganized into Khairatabad Zone and
Secunderabad Zone consisting of five Circles each. Jubilee Hills Circle was kept under newly created
Khairatabad Zone .
The Circle is headed by a Deputy Commissioner who is assisted by two Assistant Municipal
Commissioner, Executive Engineer, Asst. City Planner, Asst. Medical Officer Health, Deputy Director,
Urban Bio Diversity, Chief Transport Officer, Sr. Entomologist (UMS), Assistant Director (Veterinary)

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Licensing Officer, Assistant Director Sports, Superintendents and other supporting staff in fulfilling
various functions of the GHMC.

The position of the Deputy Commissioner, GHMC, Jubilee Hills Circle in the overall organizational
hierarchy is as follows:
Principal Secretary, MA & UD
Commissioner, GHMC (Head Office)
Zonal Commissioner Khairatabad Zone
Deputy Commissioner, Jubilee Hills (Circle)

b) Fund flow mechanism: The GHMC generates its funds through collection of various taxes and non-
taxes like Property Tax, Trade License, Mutation Fee, Advertisement fee, etc. Property tax is the main
source of income to the civic body. In addition, assigned revenue is also allocated by various Government
Departments towards its share from Stamp Duty collections, Entertainment Tax collections, Profession
Tax collections etc. The GHMC Jubilee Hills Circle remits all revenue realized to the GHMC Head
Office. Daily collections realized in cash are being remitted into Bank on the next working day and
realization of taxes/fee through cheques and demand drafts is made on the day of clearance and receipt in
Bank. The expenditure bills relating to salaries, work bills etc processed at the office of Deputy
Commissioner, Jubilee Hills Circle are being forwarded to Zonal Commissioner, Khairatabad Zone for
payments, after pre-audit of the bills by the Zonal level Examiner of Accounts.
c) Personnel: The following officials held charge of the post of the Deputy Commissioner, GHMC,
Jubilee Hills Circle during the period shown below:

Sl. Name of the Officer From To

No. S/Sri/Smt
1. P. Mahender Dec 2105 January 2016
2. Samrat Ashok Nama February 2015 02.10.2016
3. P. Chandraiah 03.10.2016 10.10.2016
4. K. Satyanarayana 11.10.2016 21.05.2018
5. A. Ramesh 22.05.2018 28.06.2018
6. Geetha Radhika 29.06.2018 15.10.2018 FN
7. Richa Gupta 15.10.2018 AN 20.12.2018 FN
8. Seva Eslavath 20.12.2018 AN To-date

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d) Scope of Audit: The audit of the Circle in the reorganized set up was taken up for the first time.
During the present test audit the accounts /transactions from the period from April 2014 till
commencement of Audit were generally examined and a test check of transactions including nominal and
number audit was conducted. The audit was conducted as part of Compliance audit.
e) Audit Mandate: The audit has been conducted in accordance with Section 20 (1) of the Comptroller
and Auditor General of India (Duties, Powers and Conditions of Service) Act, 1971 and the applicable
Auditing Standards of the CAG of India.
f) Disclaimer: The Report has been prepared on the basis of information furnished/made available by
the GHMC. The office of the Principal Accountant General (Audit), Telangana, Hyderabad disclaims
any responsibility for any mis-information and/or non-information on the part of the Department.
PART - II
Audit Findings:
A) Significant Audit Findings: ---
B) Other incidental Findings: Vide Report
PART - III
A) Progress of settlement of Audit findings outstanding from
Previous Inspection Reports: Nil (First Audit of the Circle)
B) Persistent Irregularities: Nil
PART – IV
C) Best Practices; Nil
PART-V
Acknowledgement:
Audit team acknowledges the co-operation extended by Sri Seva Eslavath, Deputy Commissioner,
Jubilee Hills Circle, GHMC, Hyderabad and his staff in conducting the Audit subject to the comments
brought out in the para “Documents / Information not produced”.

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Page 4 of 34
 PART-B (Other incidental findings)
FINANCE AND ACCOUNTS
Fund flow mechanism:
The GHMC generates its funds through collection of various taxes and non-taxes like Property
Tax, Trade License, Mutation Fee, Advertisement fee, etc. Property tax was the main source of income
to the civic body. In addition, assigned revenue was also allocated by various Govt. Department towards
its share from Stamp Duty collections, Entertainment Tax collections, Profession Tax collections etc. The
GHMC Jubilee Hills Circle remits all revenue realized to the GHMC Head Office. Daily collections
realized in cash were being remitted in to Bank on the next working day and realization of taxes/fee
through cheques and demand drafts was made on the day of clearance and receipt in Bank. The
expenditure bills relating to salaries, work bills etc processed at the office of Deputy Commissioner,
Jubilee Hills Circle were being forwarded to Zonal Commissioner, Khairatabad Zone for payments, after
pre-audit of the bills by the Zonal level Examiner of Accounts.
1. Budget:
The Circle was not in receipt of any separate Budget and the same was allocated by the GHMC
Main Office since the powers of allocation of budget vested with the Commissioner, GHMC, Hyderabad
further the sanction of expenditure was vested with Commissioner, GHMC, Hyderabad and Zonal
Commissioners, the Circle did not maintain any separate record. They were required to be maintained
the quantum of Budget allotted to the Circle, expenditure met there from, which they have not produced
to audit.
The Circle was not maintaining any Cash Book for General Fund, Scheme Funds etc., it was
simply replied that the information was available at Headquarters Office, GHMC, Hyderabad. However,
the Circle was required to maintain its portion of Cash Balances in the Cash Books for both General Fund
and other Schemes viz., Swachch Bharat etc.in the absence of the Cash Book the audit had to rely on the
ERP data maintained at Zonal Level for Cash Book and Bank details, hence audit had to make some
comments on the expenditure which encompassed the undivided Circle of Khairatabad.
Further, in respect of Bank Accounts maintained by the GHMC Main Office includes operation of
Scheme Accounts relating to Swachcha Bharath, NULM, SCSP, TSP but the details relating to the Circle
was not made available.

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2. Observations On Fixed Deposit Receipts
As seen from the information furnished by the Department, following was the position of
availability Fixed Deposit Receipts with the GHMC:
Year No. of Amount in Rs. Date of expiry
Instruments
2015-16 417 771,21,06,731 All these FDRs expired
during 2016-17 and 2017-
18
2016-17 243 321,76,26,433 -do-
2017-18 411 391,50,22,565 -do-
2018-19 411 402,33,00,609 -do-
About 12 FDRs will mature
in March 2020
Since the FDRs were shown as relating to entire GHMC, and no Circle-wise break up
available, the number of FDRs pertaining to Jubilee Circle were not ascertainable.
In this context, following observations were made/clarification sought:
1. Since the currency of the FDRs expired, it was not ascertainable that these amounts were
encashed and written back in the Cash Book as Receipts, the details regarding necessary contra
entries required to be furnished to audit. If not, details of Renewal of FDRs, the Bank from which
Deposits were obtained were required to be made.
2. The Scheme Funds from which the FDRs obtained.
When this was brought to notice, it was stated that the details were available in the GHMC
Head Office, Hyderabad.
The reply was not convincing, the Circle may obtain details relating to the FDRs
pertaining to the Circle and take necessary action to reconcile the FDRs the currency of which
expired and renewals made/value return back in the Cash Book etc.,

3. Non-Adjustment Of Bounced Cheques – Rs.73.64 Crore

On verification of data furnished by the Circle, it was observed that there were cases of
Bounced cheques amounting to Rs.73,63,69,519 for the years from 2014-15 to 2018-19, as detailed
below:
Sl. No, Circle Year Amount in Rupees
1 10 (Central Zone) 2014-15 16,54,68,850
2 10 (Central Zone) 2015-16 5,28,83,086
3 17 2016-17 8,74,02,392
4 17 2017-18 22,84,27,717
5 17 2018-19 20,21,87,474

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 Total 73,63,69,519
The amount of bounced cheques inflate the receipt amounts in respective years. Whether action
was taken to write back the amounts in the Accounts and to realize the amount involved in bounced
cheques.
Since the bounced cheques span over a period of five years 2014-15 to 2018-19 across
undivided circles to present Jubilee Hills Circle, action was required to be taken to identify the bounced
cheques relating to the Circle and action taken to cancel the cheques and write back the amounts in the
Cash Book of the Circle
When the details of adjustment particulars was called for the department did not give any
specific reply.

4. Adjustment Particulars Of Advances – ₹18.59 Lakh

On verification of data furnished by the Circle, it was observed that there was an amount of
Rs.18,59,100 was pending Advances for the year 2018-19. Out of this amount of Rs.16,84,100 was
incurred for payment of reroute of 33 KVA High Tension Pole at Plot No. 58/A, near Chiranjeevi Blood
Bank, Road No.8. Jubilee Hills, Hyderabad on 24 January 2019.
Action taken to adjust the Advance amounts in the Accounts by way of payment of excess or
recovering the unspent balance, if any called for, the department did not furnish any specific reply.

5. Differences in Receipts and Withdrawals figures of the Department and Bank Statements
The receipts figures for the months of October 2017, April 2018 and May 2018 were compared
with Bank Statements (A/c No. 52082155645) of corresponding months. The instrument numbers and
corresponding amounts given in the Annexure were neither found in the bank statements nor in the
statement of bounced/reversed cheques. Cash deposits as per cash book and cash deposits as per bank
statement were found to have differences as given below:
Sl. Month Cash deposit as per Cash Cash Deposit as per Bank Difference
No. Book Statement
1. October 6283745 5499588 784157
2017
2. April 2018 55041855 61625096 -6583241
3. May 2018 7722001 20115124 -12393123

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 Further, the withdrawals from bank (A/c No. 62038379684) for the above said marked months of
October 2017, April 2018 and may 2018 were tallied with cash books. The instrument numbers and
corresponding figures of withdrawals were not found to be tallying with cash books.
When the reasons for the above was sought, it was replied that the matter would be examined and
detailed reply would be submitted.
Compliance might be reported to audit.

6. Observations Expenditure incurred on various items

The Budget figures relating to the DC, GHMC Jubilee Hills Circle/Zonal Office Khairatabad
furnished by the FA were scrutinized.
In this context the following items of budget allocations/expenditure for various items listed in
the table below for the years 2017-18, 2018-19 and 2019-20.(In Rupees)
Sl No Description 2017-18 2018-19 2019-20
1. Advertisement and Publicity 1212594 823123 81600
2. Books Periodicals & Newspapers 104640 127455 1041646
3. Computer consumables 2407744 669643 1075629
4. Control of stray animals 11800006 7805997 7305697
5. Election expenditure 2473609 28217372 15374221
6. Electricity charges 63903810 38385070 22301344
7. Expenditure on unclaimed dead bodies 3742600 2852800 1388600
8. Hospitality, Liveries to Employees 1360204 11324788 7077752
9. Meetings, Seminars and Conferences 15669272 12409154 4250807
10. Organisation of festivals 22832714 12362649 49838616
11. Sanitation/Street lighting Public Toilets 878880689 366728423 201352118
12. Tran-Dumper Bins/Garbage/Litter bins 60381297 39416282 45155119
13. Urban Malaria/Dengue eradication 13918702 12661093 7749859
14. Sports equipment 689000 5325429 3052127
15. Burial Grounds - 61986941 22380408
16. Foot paths and Table drains - 66655394 68041401
17. Traffic islands/Signals & Signage, - 41759999 46407919
Swatch Bharat, Swimming pools
18. Unforeseen contingencies. 3680263
19. Aasara old age pensions 1266000 536000 240000
The information /data/documents relating to expenditure details of the above items along with
sanction orders, vouchers & measurement books for the months 10/2017,4/2018 & 5/2018 were sought
for detailed scrutiny.
Hence the above called for information might be produced to audit. When this was sought it was
replied that all the vouchers have been supplied. The reply was not tenable as the required

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 information/records were not produced for all the items listed in the table. The concerned vouchers in
respect of Tran Dumper bins, garbage bins and Swach autos only were given. The detailed information
sought under various heads/items as mentioned in the table were not furnished to audit for further
scrutiny.
REVENUE (PROPERTY TAX)
7. Observations on DCB of Property Tax
The following information relating to Demand, Collection and Balance (DCB) Statement of
the Circle for the years from 2014-15 to 2019-20 were furnished by the Department.
(₹ in crore)
Sl. Year Name of the Demand Collection Balance Balance as Variation % of Percen
No. Circle shown by Tax tage of
department colle short
cted collect
ion of
tax
1 2014-15 10 (Jubilee 492.07 230.30 261.77 265.30 (-) 3.53 46.7 53.28
Hills Circle 2
was a part of
it)
2 2015-16 10-B (Jubilee 334.53 136.40 198.13 201.00 (-) 2.87 40.6 59.36
Hills Circle 4
was a part of
it)
3 2016-17 10-B (Jubilee 428.57 154.50 274.07 276.30 (-) 2.23 61.6 38.33
Hills Circle 7
was a part of
it)
4 2017-18 18- Jubilee 352.02 126.1 225.92 226.84 (-) 0.92 35.8 64.18
Hills Circle 2
5 2018-19 18- Jubilee 420.05 138.80 281.25 282.63 (-) 1.38 33.0 66.97
Hills Circle 3
6 2019-20 18- Jubilee 466.53 106.60 359.93 360.62 (-) 0.69 22.8 77.16
(upto30/1 Hills Circle 4
1/19)
It was observed that the collection of Property Tax was meager and it was less than 50% during
the years 2014-15 to 2018-19 except 2016-17.
Further, it was observed that variation in Balance of tax to be collected as per Circle figures and
actual figures ranged from (-) Rs.0.92 crore(2017-18) to (-) Rs.3.53 crore (2014-15).
When reasons for variation in balance amounts and action to reconcile the figures were called for
the department replied that the variation of property tax demand on Dashboard and property tax annual
target fixed/collected was due to inclusion of time barred demands to the tune of Rs. 212.04 crore, i.e.,

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a) Uncollectable, b) Double PTINs, c) Building demolished and constructed apartments, d) Building
demolished and now under construction, e) Building demolished and now Open plot, f) Road Widening
affected building, g) Court cases, h) Sick Units and closed establishment & i) Others up to year 2019-20.
The reply was not convincing as the circle had to keep track of targets fixed, amount collected and
details uploaded online for preparation reconciled DCB.
(ii) Non providing of information regarding original assessment of Jubilee Hills International Club
It was observed from the DCB Statement provided by the Circle, the Jubilee Hills International
Club with Door No.8-2-293/82/A/A/1 was in current arrears of Property Tax amounting to Rs.3,01,662
with PTIN No.1190800108 . The yearly tax payable was ₹2118508.The Assessment date was
24.03.2016. The unauthorized construction penalty levied was 10,59,252. The buildings were of 36920
Sft with old constructions and Posh multi story buildings, The date of construction of the building was
not on record with cross reference to buildings permissions obtained. Hence the actual period from
which the assessments should have been made could not be ascertained. As a result there was a
possibility of revenue leakage during the period when the assessment was not made.
The department replied that the actual date of assessment would be ascertained and intimated to
audit. The present assessment was made in 2016 and latest revised assessment was made in the year 2019
duly levying penalties for unauthorized constructions. It was further stated that the GHMC or erstwhile
MCH did not given any land or lease to Jubilee Hills International Club.
Compliance in this regard may be furnished to audit.
(iii) Chronic Defaulters of Property Tax ₹ 50 Lakh and above
It was noticed from the Demand Collection and Balance data furnished by the circle that there
were chronic defaulters in payment of Property tax (both current and arrear balances).
The details of 29 cases where arrears were accumulating to the extent of Rs. 50.00 lakhs and above
were listed in Annexure enclosed.
It could be seen that M/s Jubilee Hills Land Mark Project Ltd with an arrears of ₹ 24,36,84,896
topped the list, while M/s Hyd Asbestos Cement Pro was second with an amount of pending tax arrears
₹17,45,84,266
When the reasons for pendency in collection of amounts ranging from ₹50 lakh and above and
appropriate action taken to collect the arrears in all the above cases were called for department replied
that the Dashboard demand included time barred demand to the tune of Rs. 212.04 crore, i.e., a)
Uncollectable, b) Double PTINs, c) Building demolished and constructed apartments, d) Building

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demolished and now under construction, e) Building demolished and now Open plot, f) Road Widening
affected building, g) Court cases, h) Sick Units and closed establishment & i) Others up to year 2019-20,
In 29 cases property tax was collected and some of PTINs fall in time barred demand, which can be
perused in GHMC online Dashboard. Moreover, specific instructions were issued to all the field staff,
i.e., Tax Inspector and Bill Collectors to focus on (29) PTINs for collection of property tax and submit
report on priority basis.
The reply of the department for the above was not convincing as reconciliation has to be done upto
date and expeditious action to be taken to reduce the accumulation of arrears.
Compliance in this regard may be intimated to audit.
(iv) Allowance of inadmissible deduction/Rebate on Annual Rental Value of Residential Property
According to Greater Hyderabad Municipal Corporation Act, 1955 as amended by Act No. 13
of 2008 w.e.f. 10-7-2008 and Greater Hyderabad Municipal Corporations (Assessment of Property
Tax) Rules, 1990, property tax was calculated as percentage of Annual Rental Value (ARV) of the
property and following allowances/rebates were allowed from ARV:
(a) Deduction attributable to building in lieu of all allowances for repairs or on any other accounts:
Age of Building Deduction allowed
25 year and below 25 years 10%
More than 25 years and up to 40 years 20%
More than 40 years 30%
(b) Rebate to owner occupied residential buildings: A rebate of 40% of the ARV was allowed from
ARV attributable to the building in respect of the residential buildings occupied by the owner inclusive of
the deduction permissible towards the age of the building.
The test check of the Assessment registers (Nos.8-2/1040 to 1043 and 1043) shows the following:
1. Same owner was shown as occupied more than one residential flat/floor, up to 5 flats/floors,
and given rebate of 40% on ARV attributable to building for all such properties (list of some
such owners was enclosed).
2. All the residential properties were shown as occupied by owner, no property was shown as
occupied by tenant, hence rebate of 40% on all such properties.
3. The ages of all the residential or commercial properties were shown as “Below 25” years or “25
years.”
When it was queried whether above said points apply to all assessments done in the circle and
all related to residential properties were called for it was replied that:

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 1&2) The buildings in questions were newly constructed and number of flats/portions not
occupied by anyone/vacant, hence house details of occupants could not be assessed as a result 40%
rebate was given.
3) Since, the flats were put up for sale during un-occupied/vacant period the relevance of age of
the building does not arise.
4) Annexure: the list of properties given in the annexure falls under Jubilee Hills area were
occupied by owners (Posh bungalows), hence 40% rebate given.
The reply of the department was not convincing as they failed to periodically assess the
ownership of the flats to decide the value of rebate to be given. As a result revenue accruable at higher
rate was not realizable. The gazette notification in respect of residential properties was not provided to
audit, due to which the audit was not able to verify the calculation of property tax. It was replied that
separate gazette notification was not available for residential properties

TOWN PLANNING
8. Building Permissions – Variations in data
On verification of online data in respect of Building Permissions of the department following
variations were noticed:
Sl. Item As per Office As per details given for individual data
No. Dash Board
1 Building Permissions Application received 975 1194
2 In Process 30
3 Closed 1 1
4 Fee intimated 51
5 Short fall 162 60
6 Rejected 29 66
7 Permit issued 702 868 (737+ 131 Occupancy certificates issued
Applications for Building permissions received were as 975 as per Office Dash Board whereas the
details were available as 1194 applications processed. Short fall in documents as per Dash Board was 162
but details were available for 60 cases only. Hence there was difference of 219 applications received and
102 in short fall in documents respectively which needed to be reconciled.
Further it was noticed that out of 868 permits issued there were 131 occupancy certificates issue
cases. Since occupation of the buildings/houses constructed in a plot area of 200 sq mtrs/with a height of
7 mtrs without occupancy certificates was not permissible, it was queried that out of 737 permits issued
how many properties were required to be issued occupancy certificates. Whether assessment for property

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 taxes for all new cases was monitored and details of linkage of Building Permissions with property tax
assessments carried out.
When this was pointed out the department replied that the data of building permission received and
disposed etc. were all updated regularly on day to day basis. Hence, there was variation between
dashboard data and actual data available in the particular items of DPMS. However, action would be
taken to reconcile the difference between the dashboard data and actual data. However the reply was
silent on linking of Building Permissions with property tax assessments.
Compliance on the issued raised may be reported to audit.
(ii) Short levy of Building Permission Fees
The scrutiny of levy of building permission fees for select cases shows that the built up areas
given in the general information under DPMS were different from those given in the calculation of
building permission fees, which resulted in the short levy of building permission fees as given below.
When the reasons for the same were asked the department replied that the matter would be
examined and detailed reply would be submitted.

Builtu Built up Charges

Sl. Localit p area in BC Dev. for
file No House No Type diff Total
No. y area(s calculation &EBC charges Rainwat
qm) sheet er Harv.
3/C18/185 8-1-
89/2019 248/O.U/1 O.U.
1 (SUB-1) 16 Colony Res 135.47 112.42 23.05 2305 2881.25 184.4 5370.65
3/C18/179
54/2019 8-1- Tolicho
2 (SUB-2) 332/1/2/3 ki-19 Res 180.68 159.62 21.06 2106 2632.5 168.48 4906.98
3/C18/179 J Hill-
3 32/2019 276 19 Res 626.33 53 573.33 57333 71666.25 4586.64 133585.9
8-1- Jaihindn
3/C18/193 68/3/20/9 agar
4 21/2019 6 Colony Res 187.37 173.12 14.25 1425 1781.25 114 3320.25
8-1- Jaihindn
3/C18/193 68/3/20/9 agar
5 19/2019 6 Colony Res 187.37 173.12 14.25 1425 1781.25 114 3320.25
3/C18/066 8-2-
04/2019 293/82/JII
(Rev-1) I/PLOT J Hill-
6 (SUB-1) NO.435 19 Res 205.43 148 57.43 5743 7178.75 459.44 13381.19
3/C19/027
53/2018 Tolicho
7 (SUB-2) 102 ki-19 Res 272.84 252 20.84 2084 2605 166.72 4855.72
Plot
3/C19/029 No.147, MLA &
59/2018 Sy No.125 MP
8 (SUB-2) and 126 colony   713.83 702 11.83 1183 1478.75 94.64 2756.39

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 3/C19/031
83/2018 8-1- Tolicho
9 (SUB-1) 332/3/97 ki-19 res 254.26 228.46 25.8 2580 3225 206.4 6011.4
3/C19/154 H.no 8-2-
26/2017 293/82/j/B J Hill-
10 (SUB-2) -8 19 Res 162.7 126.6 36.1 3610 4512.5 288.8 8411.3
185920

(iii) Non disposal of pending LRS Applications

Government of Telangana vide G.O.Ms.No. 151 Municipal Administration and Urban
development Department dated 02.11.2015 issued Telangana Layout Regularization of Unapproved and
Illegal Layout Rules, 2015. In order to bring all these unplanned areas into the fold of planned
development and to provide basic facilities in these areas so as to promote an overall and integrated area
and city level development. Further Government Memo No.632/Plg.II(1)/2018 dated 19.06.2018 &
30.08.2018 was issued for disposing all pending LRS applications by 31.10.2018. Since, a few more LRS
applications were pending the Government issued a new Memo No. 632/Plg.III/2019 dated 06.11.2019
giving extension of time limit up to 31.12.2019 to dispose of LRS applications which were received
before 31.12.2016, where balance LRS amount / required documents were due from the applicants, and
NOC was pending from other Departments like Revenue/Irrigation Department etc.
In this context, following information/data were called for:
1. All layout patterns considered before issuing LRS
2. Calculation sheets for a few select cases for calculating LRS amount,
3. No. of LRS issued on the basis of layout patters,
4. a)Whether the collected amount was deposited in escrow account as mentioned in the guidelines,
b) If yes, whether it was used for the development of the layout as mentioned in the guidelines.
5. Reasons for rejection of LRS,
6. Cases where LRS was given but building permission were denied. If denied for valid reasons,
whether the LRS proceedings were cancelled.
7. What the mechanisms were followed for ensuring that LRS proceedings submitted at the time of
building permission were genuine.
8. Based on layout pattern, whether open spaces and parks were protected.
Further, it was observed that:
From information furnished by City Planning wing total LRS applications received as on
03.12.2019 were 1411 out of which 1391 were processed leaving 20 applications to be processed. It was

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seen that in huge number of cases viz. 1032 shortfalls (as detailed in Para I) were intimated. From this it
was evident the purpose of issuing orders for regularization of unapproved and illegal layouts was not
served as the applications were not properly processed to find out the shortfalls and to solve the issues of
want of NOC from Revenue/Irrigation authorities with regard to title aspect etc. The planning staff of
GHMC shall pursue with Revenue/Irrigation authorities and shall dispose all pending LRS applications.
When this was pointed out the department replied that a detailed reply along with information
would be submitted in due course.
(iv)Clearance of Encroachments -Demolition And Monitoring Of Construction Of
Structures/Buildings on the cleared sites
(i) As seen from the reports of print media, it has come to notice that many number of
encroachments were being made near the land abutting the lakes and water bodies resulting in water
logging during rainy season. However, it was instructed that GHMC should have a constant vigil and
surveillance and should not allow any kind of unauthorized occupations in the Government land. Further
whenever encroachments were noticed they should bring to the notice of the competent authority and get
the evictions done without any loss of time and to see that the lands of the Govt. were safeguarded.
(ii) Further, the details of encroachments of Corporation lands were also called for
The department replied that (i) the information would be furnished in due course (ii) the matter
relates to GHMC Main Office and information to be obtained from the Commissioner, GHMC.
Compliance may be reported to audit.
(V) Non collection Of Labour Cess from Building Permission Applicants
As per G.O.Ms.No.112, Labour Employment Training & Factories (Lab.II) Department dated 15
December 2009, 1 per cent labour cess was leviable, where the estimated cost of construction exceeds
Rs.10 lakh. The Controlling Departments of the Local Bodies / Authorities which were competent to
approve plans for “Building and Other Construction Work”, viz., (1) Municipal Administration & Urban
Development Department, (in respect of all Urban Local Bodies) (2) Panchayat Raj Department (All
Village Panchayats) etc., where construction activity takes place involving labour were requested to issue
instructions immediately to the Heads of Departments and the Local bodies/ Authorities:
(i) to comply with the statutory provisions under the Building and Other Construction Workers
(Regulation of Employment and Conditions of Service) Act, 1996 (Main Act) and the Telangana State
Rules, 1999 made there under; Building and Other Construction Workers’ Welfare Cess Act, 1996 (Cess
Act) and Cess Rules, 1998 BY ENSURING THAT 1% Cess on the “Estimated Cost of Construction” of

Page 15 of 34
 the building works covered by the definition of “Building and Other Construction Work” which includes
all expenditure incurred by an employer in connection with the Building and Other Construction works
and it excludes the costs of land and any compensation paid or payable to a worker or his kin under the
Workmen’s Compensation Act, 1923 were received by them before they accord approvals to the plan.
(ii) for the purpose of estimated cost of construction, therein it was advised to follow the
structure value guidelines issued by C&IG(R&S) vide proceedings No.MV/5/12703/2007, dated 30 July
2007 and subsequent amendments thereto.
(iii) to maintain a Register and send Monthly Statement before 10th of the succeeding month to
the Secretary, Telangana State Building & Other Construction Workers Welfare Board, Anjaiah
Samkshema Bhavan, Near RTC X Roads, Hyderabad”, to enable him to reconcile the Cess collection
figures with the Bank/Treasury figures.
During the test check of building permissions in DPMS it was found that labour cess was not
levied in any case. Further , in DPMS the estimated cost of the building was not found and hence audit
was not able to quantity the non levy of Labour Cess.
When the reason for non-levy of Labour Cess and number of cases of building permissions where
the estimated cost of the building was more than Rs.10 lakh for the period form 2014-15 to the date were
called for, it was replied that the issues would be examined in detail and relevant data furnished to audit
in due course.
Compliance may be reported to audit.

9. ENGINEERING
I) Observations on Restoration and Strengthening of Road Works.
Name of the work: 1.Restoration and Re- 2. Laying of CC road with 3. Laying of CC road 4.Strengthening
carpeting of BT Road M40 grade using vacuum with M40 grade from and Re-carpeting
for cutting of de watering in place of plot No 140 to 121 and of existing BT
HMWSSB for laying of damaged BT road from from plot no 123 to Road from
600/450mm dia M/s plot No 303L to 303A plot no 126 at Road Kalinga Junction to
feeder main from MBT Road no 25 Jubilee Hills no 72 and 74 Jubilee Film nagar cross
Nagar Kaman to circle No 18 Central Zone Hills circle no 18 roads in Road No
Kalinga Junction in GHMC Central Zone GHMC 92, KBR Park
Road No 12, Ward No Road in the Major
93 in Jublilee hills roads Division I
circle no 18 Central GHMC item 34.
Zone GHMC
Amount of ₹ 1,17,00,000/- ₹ 20,00,000/- ₹34,00,000/- ₹49,50,000/-
Administrative/Tech
nical Sanction

Page 16 of 34
Amount put to tender ₹ 1,01,95,257/- ₹ 17,24,998/- ₹29,55,447.27 ₹46,55,418/-

Name of the M/s VKA A. Sampat Kumar A. Sampat Kumar SRR Constructions
Contractor Constructions Shamshabad
Agreement Number Agmt No 28 Agmt No 34 Agmt No. 89 dated Agmt No76 dated
and value dated25/6/2018 dated15/5/2018 26/7/2018 16/8/2016
₹ 1,06,94,824 + 4.90% ₹ 17,02,055( -) 1.33% ₹ 28,07,083( -) 5.02% ₹
excess over estimated less over estimated rates. less over estimated 46,51,228( -)0.09%
rates. Supplemental Supplemental agmt Dt rates. Supplemental less over estimated
agmt No 31/5/2018 for ₹1,83,454/- agmt No.- Dt rates.
03/SE/(KZ)/GHMC/T2/ 22/10/2018 for
2018-19 Dt 27/9/2018 ₹3,13,295/-
for ₹50,38,390.34
Period of completion 3 months (24/9/2018) 3 months (14/8/2018) 3 months (25/10/2018) 1,1/2
months(30/09/2016
)
EMD Details Vide BG No 21/2018 dt -- -- DD No 117871 dt
25/6/2018 for Rs 19/5/2016 for
2,67,400/- Indian Bank, ₹116385 SBH
Uppal, HYD. valid upto MC Tank Bund Br
20.09.20
Payment particulars Ist and Part Bill 2nd and Final Bill for an 2nd and Final bill paid 1st and part
Amounting to amount of ₹19,39,312/- for running bill
₹ 81,04,633/- (net (net payment ₹1,96,237/- ₹ 27,98,593/- (₹ ₹29,66,865/ (net
payment Rs 71,02,199) vide Ch 1070865 dt 335101) vide Cheque 2501006) vide
was made vide Ch No. 1/10/2019 No 106996 dt 4/7/2019 Cheque No.
1067344 dt 3/1/2019 1059974 dt
26/8/2017
(Observations) The work was not Since the work was Since the work was The work was not
completed within the entrusted with tender entrusted with tender completed within
stipulated time i.e., discount, concluding discount, however the stipulated time
24/9/2018 and no EOT Supplemental agreement concluding i.e., 30/9/2016 and
on record. However 1st or ₹1,83,454/- negated Supplemental no EOT on record.
and Part Bill was paid the benefit accrued as a agreement for However 1st and
Rs ₹ 81,04,633, dt result of discount tender. ₹3,13,295/- negated Part Bill was paid
3/1/2019. The The laying the roads were the benefit accrued as ₹28,22,897, dt
contractor submitted an of routine nature of a result of discount. 26/8/2017. The
invoice for GST for ₹ works undertaken by the The laying the roads tender was allotted
9,12,234. It might be Circle, and the Circle were of routine to M/s SRR
stated whether the said could have foreseen the nature of works Constructions on
amount was reimbursed requirements to avoid undertaken by the first call though he
to the contractor and huge variations in the circle and the circle was only bidder.
remittance to final head estimated cost and the could have foreseen Hence competitive
of account ascertained. cost of work done. The the requirements to advantage was
The tender was allotted contractor submitted an avoid huge variations deprived to the
to VKA Constructions invoice for GST for ₹ in the estimated cost GHMC as a result
on first call though he 2,03,644. It may be stated and the cost of work of acceptance of
was only bidder. Hence whether the said amount done single tender. The
competitive advantage was reimbursed to the Since the work has reasons for non-
was deprived to the contractor and remittance been finalized and completion of the
GHMC as a result of final head of account GST amount of Rs work might be

Page 17 of 34
 acceptance of single ascertained. 27,966 each (CGST & furnished to audit.
tender. The reasons for SGST) were deducted It was seen from
non-completion of the at source it may be the records that as
work may be furnished stated whether the a result of
to audit. It may also be information relating to disbanding of
stated whether the work remittance of major roads Circle
was determined or remaining amount of and division it was
closed if so, the 10% CGST GST was instructed to hand
contractor demanded ascertained from the over all special
any compensation since contractor and repairs damaged
the work was abruptly information furnished BT roads works to
closed. to audit. the concerned
maintenance
divisions at zonal
level so as to
ground the work
immediately.
Hence it may be
stated whether the
works were
formally handed
over to Jubilee
Hills circle and the
present position of
the work might be
stated. It may also
be stated whether
the work was
determined or
closed if so, the
contractor
demanded any
compensation
since the work was
abruptly closed. It
was seen that an
amount of
Rs.1,41,145/- was
recovered towards
VAT. Since the
work was not
completed and
final bill was
pending settlement
the treatment of
VAT in the light of
introduction of
GST may be
stated.
When this was brought to notice it was replied that –

Page 18 of 34
 1. After payment of first and part Running Account Bill upto 31-07-2018, no subsequent bill was
received; penal action would be taken against the agency for inordinate delay, if warranted.
The agency was paid GST @ 5% as interim arrangement in terms of instructions issued vide
Government Memo dt. 08-08-2017, the balance GST will be reimbursed to the agency subject to the
quantification of embedded tax already loaded in the estimate with the approval of competent authority as
and when the agency submits the subsequent bills for payment and will be asked to produce an
undertaking in token of filing the GST returns.
The work was allotted to the single agency by the competent authority as there was no competitor.
The work was not yet proposed for determination hence the contractor was not paid any compensation so
far.
2. & 3. Estimate was prepared as per the visual site conditions after due inspection by the field
officers, but certain quantities of estimates were exceeded and fell short in some cases during the course
of execution hence the difference accrued and supplement agreement concluded were authorized extras
the tender discount was subtracted from the value of work done therefore the benefit accrued on discount
tender was not negated. Further, as per GST mechanism TDS @ 1% SGST and 1% CGST was effected
from the bills of the contractor and an undertaking in token of filing the GST returns obtained.
4. the agency presented first and running ‘bill to the extent of 02-01-2017 and was paid to the
agency on 26-08-2017. Subsequent bill was not received so far. The work was sanctioned in the
erstwhile MRD due to closure of the MRD the work was allotted to this office as the area comes under its
jurisdiction the work was not proposed for determination hence the compensation payment to the agency
did not arise. Soon after receipt of subsequent bill the assessment of actual tax liability would be done
and SGST and CGST would be settled accordingly.
Further compliance where the department promised further action in respect of extension of time,
GST remittances, determination of the agreements etc., may be reported to audit. In respect of issues like
acceptance of single tenders, conclusion of supplementary agreements etc., the matter may be brought to
the notice of higher authorities for restricting such practices.

Page 19 of 34
10. Observations on repairs and Re-Carpeting of Road Works At HICC for the proposed Global
Events

Name of the work: Repairs and Re carpeting of Damage BT from NFCL junction to KBR
park at Roadno2,Ward (2,Venkateswara Colony Jublee Hills Circle 18
(CZ) GHMC Item No 2)

Amount of ₹ 1,47.50,000
Administrative/Tec
hnical Sanction
Amount put tender ₹ 1,28,44,501

Name of the M/s VKA Constructions

Contractor
Agreement AB No149/SE(CG)/GHMC/T3/2017-18/ Dt 16.11..2017
Number and value ₹ 1,34,73.881.55 + 4.90% Excess over the estimated rates
Supplemental Agreement 05/ SE(CG)/GHMC/T3/2017-18 Dt 24.02.2018
for ₹19,84,821.29
Period of 3 months i.e by 15.02.18
completion
EMD Details ₹3,36,945
1 payment ID No21915,Dt 06.11.17 throught ICICI Bank ,Hy for C$
1,28,445 & 2) vide B.G. No 29/2917 Dt 14.11.2017 for ₹2,08,500 Indian
Bak Uppal Br Hyd
Payment 1st & Part bill paid vide cheque No 106285 Dt 15.03.18 for 1,07,58,012
particulars

a) Award of work of single tenderer

The work was put to tender and single tender of M/s VKA Constructions of received. As a result
the work was recalled and in 2 nd call there was no response. As a consequence tenders were called for 3 rd
time and same contractor M/s VKA Constructions was again single responsive tender and the work was
allotted to him with+ 4.90% Excess over the estimated rates. In all the above cases the NIT No
152/SE(CZ)/GHMC /T3/2017-18 Dt 15.10.2017 was same Hence it is evident the recall was made on the
same NIT
Since this was premium tender the information relating to the enquires whether there were any other
prospective bidder in contention-in order to avoid formation cartel by the prospective bidders -were not
on record.

Page 20 of 34
b) Non finalization of the work:
The work should have been completed by 15.02.18.However the date of last recording was
18.11.2017. 1st & Part bill vide cheque No 106285 Dt 15.03.18 for ₹ 1,07,58,012 was only made and no
further payments were made so far. Extension of time granted was not on record. It may be stated whether
the work was physically completed and the reasons for not recording further progress of work intimated.
As seen from the note file it was observed that as per Memo No 523/CE(MHA) GHMC/TA-
II/K2/2017-18 Dt 17.08.2017 it was instructed to take up maintenance of roads ,footpaths with railings
table drain and land marking in the road stretches leading to HICC for the proposed Global Events.
The above work “Repairs and Re carpeting of Damage BT from NFCL junction to KBR park at
Road no2,Ward 92,Venkateswara Colony Jubilee Hills Circle 18 (CZ) GHMC” was one of the three works
with an estimate value of ₹147.50 lakh of the total estimate value of ₹362.00lakh administratively
sanctioned vide GHMC Commissioner proceedings Dt 15.09.2017.
Since some of the works sanctioned pertaining to Global events were reported to have been
transferred to Hyderabad Road Development Corporation Limited, it may be stated whether this work
was transferred to the HRDCL and if so the work was determined and the details payments made to the
contractor including compensation if any paid to the contractor furnished to audit.
Further details of execution of the work in item No 1 of the Administrative Sanction “Repairs
and Remarketing of Damage BT from NFCL junction to 1/12 junction at Roadno1,Ward No 92
(2,Venkateswara Colony Jubilee Hills Circle 18 (CZ) GHMC(contract value: Rs. 1,30,76, 447)” and item
No3 “Repairs and Re carpeting of Damage BT road from TDP Office junction to Jubilee Hills Check
Post various places at Road no 2, Banjara Hills Jubilee Hills, Ward Circle 18 Jubilee Hills (CZ) GHMC”
was not made available to Audit the details of the same may be furnished to Audit.
c) Extension of Validity of EMD and non obtaining of EMD for supplemental items. EMD for
₹3,36,945 was obtained in Nov /2017on an agreement value of ₹ 1,34,73.881.55. It may be stated
whether the currency of the Deposits was in force and if so the details of validity furnished. Further
supplemental Agreement ₹ 19,84,821.29 was concluded. The details EMD obtained at 2.5% amounting
to ₹49,620/ may be furnished.
d) Monitoring remittance of GST: Since the work was entrusted and agreement concluded after the
launching of GST, the same amounting to ₹ 12,90,961 was payable by the contractor on the value of
work done ₹ 1,07,58,012 Whether the circle monitored the payment of GST by obtaining the challans of
payments and if so the same may be produced to Audit.

Page 21 of 34
 When this was brought to notice, it was replied that –
a) The tenders were called for on e-procurement platform and it was awarded to M/s.VKA Constructions
under the procedure in vogue being the single tender even after third call.
Since e-procurement process was very transparent and every registered bidder on e-procurement
platform can view tender notice and participate in the bidding with a percentage of less or excess on the
ECV. Hence the formation of cartel by the bidders was ruled out.
The reply was not convincing as the bidders in the GHMC works in the Zone/Circle were by and
large the same group of contractors, hence, the department could have enquired whether there was any
prospective contention before awarding the work to the same contractor on third call.
b) Subsequent bill in respect of the work was not received so far in the office and penal action would be
taken as per rules against the agency for the inordinate delay, if warranted.
The department did not offer any comments regarding handing over of the work to the Hyderabad
Rural Development Corporation.
In respect of other two works the comments made were holds good in respect of the work at Sl.
Nos.1 and 3.
Out of the work valuing Rs.1,30,76,647, the present status of work was not known.
In respect of third work the agreement value was Rs.58,20,607 payment made was Rs.30.97,898
which infers that the work was incomplete, the present status of the fate of work was not known.
The BG towards EMD was valid till November 2019, the agency neither approached this office
for EOT, nor submitted subsequent bill. The department promised to intimate the agency for taking
necessary action in this matter.
The agency was paid first and Running Account Bill with 5% GST as interim arrangement,
subsequent bill was not received so far in this office. The agency will be asked to produce undertaking in
token of filing the GST Return for the amount of GST paid when the subsequent bill was received.
Compliance may be reported to Audit.

Page 22 of 34
11. Non grounding of Works
The Executive Engineer has furnished list of works (soft copy) executed during the years 2016-17, 2017-
18, 2018-19 and 2019-20. It was seen from the list that the progress in execution of works was nil as
detailed below:
Year No. of works on which no expenditure
was incurred
2016-17 73
2017-18 57
2018-19 58
2019-20 79
Total 267

It was further observed that agreement period of all the works till 2018-19 would have expired
by now. The reasons for not commencing of works were not on record. It may be stated whether the
works were executed physically and if so, details of recording in the M.Books furnished to audit.
Further, it may be stated whether the works were cancelled, if any, the reasons for cancellation required
to be furnished to audit.
When it was brought to notice, it was replied that the works were sanctioned in view of the
requisitions from public representatives/local residents and nil expenditure was incurred due to
following reasons -
1. Non-feasibility for execution/pending for want of cancellation,
2. Pending for want of quantification of embedded taxes after introduction of GST regime
3. Subsumed with other works
4. Transferred to other executing agencies like HRDCL etc.,
It was promised that steps were being taken to cancel the works, if required and due steps would be
taken to safeguard the interests of the GHMC in the event of cancellation of work.
The reply of the department was not acceptable as the work-wise details regarding non grounding
of works were not furnish and the reply was sketchy. The department is requested review the cases
shown in the Annexure (soft copy) and compliance may be reported to audit.

Page 23 of 34
12. Inconsistencies in maintenance of Colony Parks
As seen from the records it was observed that the an amount of ₹ 3,42,11,830/ for the years 2017-
18, 2018-19 and 2019-20 were spent for maintenance of parks in the Khairaatabad Zone as shown
under:-
Sl. No Year Budget (in Rupees)
1. 2017-18 1,61,00,636
2. 2018-19 98,15,474
3. 2019-20 82,95,720
Total 3,42,11,830
It was observed that the above amounts were paid to the colony welfare association/residents
welfare association towards 75% of the cost of the maintenance of the parks.
In this context, the information regarding number of colony parks existing, and the amount paid to
the Colony Welfare Associations (CWA) towards GHMC contributions i.e., 75 %, were called for, it was
replied that there were 13 parks in Jubilee Hills Circle and contributions to the extent of ₹ 10,98,240
were paid to CWA for 2019-20
As per the agreement condition that the CWA should contribute 25% of the maintenance cost of
parks over the GHMC Contributions which was fixed at ₹ 5000 upto 1000 Sqmts where water source
was provided by the GHMC and land scapping was done and ₹ 3500 upto 1000 Sqmts where water
source was not provided by the GHMC and were only tree parks.
The department did not provide year wise details of expenditure incurred and contributions
received from the RWA. It did not produce the audited Accounts of the CWA and joint Bank accounts
maintained with the Colony Welfare Associations The contributions made by the GHMC and CW
A/RWA did not match as per the agreement condition for the year 2019-20,
Hence the above information with the reconciled statement of amount sanctioned and
contributions made by the GHMC along with Bank Account details may be furnished to Audit.

Page 24 of 34
13. Inclusion of unrelated Provision of engaging Water Tankers for providing water to Colony Parks -
₹43.00 Lakh
The following information was extracted from the works relating to the maintenance of Walk way
garden Bit No.1,2 & 3 from main entrance gate to third service gate of KBR Park (during 1/11/2017 to
31/10/2018) revealed the following :
Name of Name of the contractor Estimate Tendered Provision for GST @ 18%
the work amount amount (₹) water tankers (₹)
(₹) Tender
percentage
Bit -1 Sri V. Gopal Reddy 32,29,000 23,28,432 (- 14,19,840 4,92,555
27.89%) (480 trips @
Rs.2958 each
trip)
Bit - 2 Sri G. Narsing Rao 38,61,800 28,96,350 (- 14,19,840 5,89,077
25%) (480 trips @
Rs.2958 each
trip)
Bit - 3 Sri V. Gopal Reddy 33,54,800 24,19,146 (- 14,19,840 5,11,747
27.89%) (480 trips @
Rs.2958 each
trip)
Total 42,59,520 15,93,379

In this context the following audit observations are made:

1. The estimates/agreements were prepared/concluded for the purpose of maintenance of KBR Walk
Way Garden in three stretches i.e., Bit-1, 2 & 3. Provision was included in the Schedule- A of the
agreement for engaging of water tanks for watering colony parks through tankers of 5000 Litres capacity
each trip. Inclusion of such provision was inappropriate as this item of estimate was not related to the
maintenance of the KBR Park. Hence separate estimate should have been prepared as this item is more
than 50% of the cost of the maintenance contract. Further, the data fixing the rate of ₹2958 for each trip
may be furnished to audit.
2. Since discount percentage of tender exceeded 15% of cost of the estimate the details of further
security obtained i.e, the discount tender offered minus 15% required to be obtained. The same may be
produced to audit.
3. It was also observed that GST of ₹15,93,379 was also provided in the agreement. The
information regarding recovery of GST at source (2%) along with remittance particulars of remittance of
GST at 16% paid to contractor may be furnished to audit.

Page 25 of 34
14. SANITATION /ASSISTANT MEDICAL OFFICER (HEALTH)
(i) Trade License Fee–Huge number of Trades not brought under Trade License Net- Revenue loss to
GHMC
GHMC was empowered to collect trade license fee as per sections 622 of the GHMC Act.
According to the Act provisions, a license or a written permission may be given for any purpose, such
license or written permission shall specify the period for which and the restriction and conditions subject
to which, the same is granted and shall be given under the signature of the commissioner or a Municipal
officer empowered under section 119 to grant the same. For every such license or written permission a
fee may be charged at such rate as shall from time to time be fixed by the Commissioner , Further no
trade can be conducted without license fee in terms of the GHMC Act. For running a trade in these
premises, a trade license was must. The details furnished by the department for the period from 01-06-
2010 to 03-12-2019 were as follows:
Total number of Trade Total TINs Rejected Pending Shortfall in
License applications generated Applications Applns Percentage
received
5405
(E-seva-41, CSC-3984, 901 25 4479 83.33
Online-1380)
From the above table it was clear that only 16% of the applications were approved and there was
huge short fall in processing the applications. As a result GHMC was foregoing License fee to a large
extent as the number of applications were not brought under Trade License net resulting in loss of
revenue to GHMC. The Year wise and Trade wise details of Trade Licenses issued during 2014-15 to
2018-19 may be furnished. Further, as seen from the report furnished by the department for the period
from 01-04-2017 to 03-12-2019 there were 3187 trades for which an amount of Rs 26.81 crore was not
paid which included AMOH Trades(628-₹9.01 cr), Asst Licensing Officer(1950-₹ 12.99 cr), Licensing
Officer (556- ₹ 4.77 cr) and Veterinary Trades (53- ₹ 0.04)
The reasons for not processing the Trade License Applications in time and short collection of
Trade License was called for, it was replied that grant of Trade License was made online and the trader
had to submit the required documents for processing the applications. Action may be taken to clear the
pending application by pursuing with the traders for obtaining the required documents. Further
immediate action may be taken to collect the due trade license fee of Rs. 28.81 crore from 3187 traders.
Compliance in this regard might be reported to audit.
(ii Trade Licenses - Tardy progress in collection of arrears

Page 26 of 34
 The Demand, Collection and Balance details of Trade Licenses O/o GHMC Jubliee Hills Circle
were as follows:-
(Rs in Lakhs)
Year No of Trades Demand (Rs) Collection (Rs) Balance (Rs)
2014-15 19158 2975.19 359.00 (12%) 2616.19
2015-16 20225 3286.03 335.64 (10%) 2950.39
2016-17 9601 3371.41 608.58(18%) 2762.83
2017-18 4522 3022.51 465.2(15%) 2557.31
2018-19
The Demand includes 1. Current license fee, 2. Current garbage charges 3. Current Interest,
4.Arrears, 5.Arrear Interest and Garbage arrears.
However the details of collection did not indicate the break up as indicated in the demand. The
number of trades mentioned in the collection was far less the trades shown in demand (50% to 60%
variation over the periods mentioned above..
The collected amount was very meager in relation to the demand raised ranging from 10 to
18% during the years from 2014-15 to 2017-18. The information relating to the year 2018-19 was not
made available to audit.
When this was brought to notice it was replied that the demand and collection was less because
trades which were closed were also reflected in the Demand every year as the Demand was also
generated for the closed Trades.
Effective action is required to be taken to update the database and work out the actual demands to
be collected.
Compliance in this regard may be reported to audit.

15 Licenses issued and Penalties levied on Cinema Halls, Eateries, Hotels and Restaurants – Non
furnishing of information
The following information in respect of penalties levied for dumping of the garbage/debris,
unhygienic eateries, poor sanitation in cinema halls and littering on the footpaths etc., in cinema halls,
eateries, hotels and restaurants were called for
1. Amount collected towards penalties along with remittance particulars in respect of months of
10/2017, 4/2018 and 5/2019 along with Challan Nos.
2. Permissions accorded to Cinema Halls/ Entertainment/Malls relating to sanitation measures,
periodicity of permissions to be given along with collection of License fee (year wise- 2016-
17,2017-18,2018-19 & 2019-20).

Page 27 of 34
 Though the department replied that the amount collected along with penalties in respect of selected
months were given along with challan nos., it did not produce any of the copies of the above challans.
Hence, Audit could not verify/check the authenticity of the amounts collected as stated above. Hence the
copies of the above challan may be produced to audit.

16. TRANSPORT
Non-auction of condemned vehicles
Government vide G.O.Ms.No: 333,GA(OD-II) Department, Dated: 31.07.1997 read with
Government vide memo No: 1/920/O.P.II/2004-1, Dt 05.10.2014 ordered to dispose the vehicles in
public auction which were 15 years old and also have covered 2,50,000 Kms after fixing the upset price
of the vehicles at 10% of the original cost without seeking any valuation certificate from department or
authority. Auction of such condemned vehicles to be conducted twice in a year i.e., August and
February in the RTI office at Head quarters as well as in Districts.
Scrutiny of the Government Vehicles records of GHMC Jubilee Hills circle 18, revealed that two
Vehicles 1) AP11U6048 and 2) AP11V8481 which fulfill the above conditions and which are required to
be condemned or disposed off in public auction by duly following the prescribed procedure were kept
idle without utilization, the details amounts realized from the auction of four vehicles through MSTC
were not furnished to audit.
Necessary action may be taken to dispose off the two vehicles through auction early, as the
condition of the vehicles may deteriorate further due to efflux of time. The realization of amount and it’s
remittance particulars of already disposed four vehicles may also be furnished to Audit.
Compliance may be reported to audit.

MISCELLAENOUS
17 Observations on mechanism for redressal of grievances from the public

Page 28 of 34
 Since the circle was handling all public interest/service related issues, providing civic services
viz., 1. Sanitation, 2. Public Health, 3. Regulation of Constructions, 4. Maintenance of Roads etc., it is
bound to receive many complaints from the citizens. In this context the mechanism exists for redressal of
grievances of the public and details of complaints received through following means may be furnished.
1. Through Online (Praja Vani).
2. By receipt of physical applications.
3. By any other apps designed for the purpose.
4. Number of Cases, Pending and Settlement (Zonal Commissioner wise, Deputy Commissioner
wise).
5. Time limit for settlement of cases.
It was replied that all the complaints were received through online and looked after by the Zonal
Commissioner and there were no manual complaints and the respective cases being maintained by the
Head Office. The reply was not tenable as the department could not produce any authority in support of
the reply. Hence audit could not verify the redressal of grievances.

18. Non rationalization of Staffing pattern in GHMC Circles

In the G.OMs No 92, Finance (SMPC.I) Dept Dt 03.04.2013orders were issued for sanction of
2607 additional Posts Department-wise and Category-wise in GHMC as per the norms issued in para 4
and 6 of the G.O.Ms. No.156 dated 09.04.2013.
The Commissioner GHMC order regarding sanctioned strength for various zones/circles was not
made available to audit. In the absence of the sanction order based on the GO issued above it was
observed from the record of different sections namely Tax, Town Planning, AMOH, Engineering in the
circle that there was no fixed staffing pattern.
As a result audit could not verify the actual men-in-position with reference to the sanctioned
strength approved by the Commissioner. Besides, GHMC was engaging a number of outsourcing
personnel due to non-filling of regular post which was resulting in decline of accountability of the staff
while dealing with the public issues.

s
19. Observations on Service Registers:

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 The following observations were made during the scrutiny of Service Registers detailed in the
Annexure
1. Non-recording list of family members in the Service Register
According to Rule 16(b) of Annexure –VII (Rule No 92) of TSTC Rules issued in GOMS No.266
Finance and Planning (FW –TA) department dt. 21.09.1996 every employee should furnish a list
of family members who were dependent on him and the same has to record in the Service
Register of the employee. Whenever there was a change in the family members either due to
addition /deletion, a revised list has to be furnished to the office. It was seen that the details of
family members were not available in some Service Registers.
2. Non–furnishing of Nominations relating to GPF,DCRG and TSGLI employees working in
the office
According to the general conditions of service under FR -10 and subsidiary rules the
nominations of General Provident fund, DCRG and TSGLI etc., were required to be furnished by
the individual employee and the same has to be noted in the Service Register.
However, the entries relating nominations for General Provident fund, DCRG &TSGLI were not
noted in some service registers. Also the prescribed forms were not affixed in the Service
Registers.
3. Non-declaring the Home Town by the staff.
It was also noticed that entries relating to the declaration of Home town were not recorded in the
some Service Registers.
4. Non-Attestation of the staff in the Service Register-
As per GOMs No. 152 Finance Department dt. 20.05.1969, it shall be the duty of Head of the
Office to obtain the signatures of the employees every year in their Service Registers in token of
verification of entries recorded therein. However, the signatures of the employees were not
obtained in some Service Registers.
5. Non affixing of photo of the employee in the 1 st page of Service Registers: It was observed that
Photos of the individual employees were not affixed in some of the service registers. The
Photograph of the employee should be attested by the Head of the Office with date.
6. TSGLI / GPF Account Numbers were not recorded in the service registers.

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 When this was brought to notice, the department replied that the omissions pointed out by audit
would be attended to and intimated to audit.

declarationHome town
membersList of family

givenTSGLI/GPF no.
GPF/DCRGNomination for
DoB in words

Attest. by self
Designation

Section
Sl No.

Photo
Name

Rent
1 U. Govind Raj Collector Tax n y n n n n n
2 Madan Singh Jr. Asst. Tax n y n n n n n
3 Dinesh Singh Supdt Tax y y y n n n n
J. Muralidhar
4 Rao Sr.Asst. Tax y y n n n n n
5 L. Anil Kumar O.S. Tax y y n n n n n
N. Rakesh
6 Babu Jr. Asst. Tax y y y y n y n
7 K. Sushmitha Jr. Asst. Tax n n n n n n n
P.L. Prem
8 Kumar Jr. Asst. Tax y n n n n y n
9 Balraj Jr. Asst. Tax n n n n n n n
10 D. Renuka Jr. Asst. Tax y y n n n n n
11 B. Jangaiah Sr.Asst. Tax n n n n n n n
Kailash Chand
12 Srivastav Supdt Tax y n n n n y n
13 G. Satish Babu O.S. Tax n y y n n n n
14 P. Sukanya O.S. Tax n y n n n n n
15 S. Mallikarjun O.S. Tax y y n n n n n
16 R. Srikanth Jr. Asst. Tax y y n n n n n
B. Prem AMO
17 Kumar Supdt H n y y y y y n
N. Thirupathi AMO
18 Reddy PHW H y y n n n n n
K. Suresh Sanit.Sup AMO
19 Gaud r H y n y n n y n
AMO
20 P. Annapurna PHW H y y n n n n n
21 S. Balakrishna Jr.Asst. TP n n n n n n n
Chainma
22 Md. Arif n TP n y n n n n n
Chainma
23 A Narsing Rao n TP y n n n n n n
Chainma
24 G. Ravinder n TP n y n n n n n
25 Narsing Rao Kamatee TP n y n n n n n

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 N. Ajay
26 Kumar Kamatee TP y y y n n n n
G. Vijay
27 Nirmala OS TP y y n n n n n
B. Viajy
28 Kumar DEE Engin. n n n n y n n
29 B. Raju Jr.Asst. Engin. n y n n n n n
Man
30 Sri Ramulu Mazdoor Engin. n y n n n n n
M. Manohar Man
31 Reddy Mazdoor Engin. y y y n n n n
Man
32 Krishna Mazdoor Engin. y y y n n n n
33 G. Srinivas OS Engin. y y n n n n n
y=yes n=no

20. DOCUMENTS/INFORMATION NOT PRODUCED

(I) Finance and Accounts
a) The particulars of cases defalcations, losses, thefts, misappropriation and embezzlement of
Govt. funds/Stores (including loss of M. Books) etc., during the period from Last audit to till
date and action taken in this regard along with recovery particulars and connected records .
b) According to the provisions of article 143 of APFCVol-I, all Stores and Stock should be
verified physically once in a year to end of March and a Certificate of check after each
verification should be signed by the Head of Office. The month up to which the said
verification done along with all the Stock registers.
c) The details of unserviceable articles/vehicles/Tools & plants, etc. lying idle in the Corporation
as on date was required to be furnished in the following proforma duly indicating the action
taken to dispose off/restoration.

Sl. Name of the Date of Cost of the Date from which Action taken for Remarks
d) No. article/ Vehicle/ purchase article/ Vehicle/ unserviceable the disposal/ A
T&P T&P(Rs.) article lying idle restoration
1 2 3 4 5 6 7 list
of
officials due for retirement within 18 months from this date was required to be furnished to Audit
along with their Service records for verification.
e) The details of cases in respect of works pending due to Arbitration/Court cases since Last audit to
till date was required to be furnished in the following format along with the relevant files.

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 S.No Name of the work and Name of the Brief details of Latest stage of
. reference To estimate Contractor Dispute the case
and Agreement
f) The particulars of land acquisition cases pending as on date in the Corporation was required to be
furnished in the following format. The cases finalized by Land Acquisition Officer might also be
furnished to audit.
Land Advance Authority Cheque No and Award No. Present Stage
acquisition Amount paid To To whom date and date
case number land Acquisition paid
Authorities (Rs.)

Expenditure Details of amount/ Award No. and Balance

incurred by Land cquisition Voucher No/Date Date amount,
Authorities (Rs.) If any (Rs.)

g) The details of advances paid from Last audit to till date was required to be furnished in the
following proforma:
S.No. Name Date of Amount Purpose Adjusted, Remarks
payment paid if not
reasons

h) State Audit Report (Departmental Report) w.e.f. 2017-18 to date

i) Cash books related to payment/expenditure from General Fund and different schemes and cash books
related to all receipts (in excel, if soft copy for the year 2019-20, b) Bank statements for the year 2019-20
in respect of all bank accounts being operated by the circle (in excel, if soft copy)
j) Vouchers related to receipts and payments for the months of October 2017, April 2018 and May 2018
(ii) Town and City Planning
a) Land Regularization Scheme
b) Record with regard to inspections carried out by various officials and report submitted.
c) Records relating to rain harvesting pits
(iii) Assistant Medical Officer (Health) Section
a) Record relating to collection of fees towards rainwater harvesting pits and tree guard fee and its
utilization.
(iv) Revenue (Tax) Section
a) Vacant land tax
b) Advertisements

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c) sports and playground

Deputy Accountant General/RS(TS)

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