Lok Sabha Question No. 2621 (UNSTARRED), answered on 2015-12-15
Subject: Financial Irregularities in PSUs
Ministry: HEAVY INDUSTRIES AND PUBLIC ENTERPRISES
Asked by: MANOJ RAJORIA

## MINISTRY OF HEAVY INDUSTRIES AND PUBLIC ENTERPRISES

## GOVERNMENT OF INDIA DEPARTMENT OF PUBLIC ENTERPRISES

## LOK SABHA

UNSTARRED QUESTION NO. 2621

TO BE ANSWERED ON 15.12.2015

## Financial Irregularities in PSUs

## 2621:  DR. MANOJ RAJORIA:

Will the Minister of HEAVY INDUSTRIES AND PUBLIC ENTERPRISES be pleased to state:

- (a) whether huge loss has been caused to the Exchequer owing to financial irregularities as a result of shortcomings  in  the  management  of  Public  Sector  Undertakings  during  the  last  two  years  and  the current year;
- (b) if so, the details thereof and the quantum of losses reported, PSU-wise; and
- (c) the action taken against the officers responsible and the steps taken to check such losses in future?

## ANSWER

## THE MINISTER OF STATE FOR HEAVY INDUSTRIES AND PUBLIC ENTERPRISES (SHRI G. M. SIDDESHWARA)

(a) & (b): The Comptroller & Auditor General of India (C&AG) conducts the audit of Public Sector Undertakings on a test check basis and significant audit findings are included the C&AG's Reports on Compliance  Audit  Observations  presented  in  Parliament.  The  Reports  are  available  on  the  official Website  of  C&AG  viz.  www.saiindia.gov.in  .  Two  of  the  above  referred  Reports  of  C&AG  and placed in Parliament (viz. Reports No. 13 of 2014 and No. 21 of 2015) reported compliance audit observations under the following four categories with the amount of financial implication as stated against each category:

## Financial Irregularities

(Rs in crore)

| Nature of Compliance Audit Observations                                                      |   Report No. 13 of 2014 |   Report No. 21 of 2015 |
|----------------------------------------------------------------------------------------------|-------------------------|-------------------------|
| 1. Non Compliance with rules, directives, procedures, terms and conditions of contracts etc. |                  766.22 |                 5863.85 |
| 2. Non safeguarding of the financial interests of the organization                           |                 1854.97 |                 1680.23 |
| 3. Defective/deficient planning                                                              |                  321    |                 1429.66 |
| 4.Non-realisation/partial realization of objectives                                          |                    4.2  |                   54.57 |

The  enterprise-wise  detail  of  the  amount  is  available  in  the  C&AG's  Reports  No.13  of  2014 (Compliance Audit Observations ) and Report No. 21 of 2015 (Compliance Audit Observations) laid in the Parliament in the respective years.

(c) In order to monitor and expedite the follow up action on C&AG report, administrative Ministries / Departments  have  set  up  Monitoring  Cells.  Administrative  Ministries  are  required  to  submit  the follow up Action Taken Notes vetted by the C&AG in respect of Reports of the C&AG presented to Parliament  to  the  Committee  on  Public  Undertakings  (COPU)  within  six  months  from  the  date  of presentation  of  the  relevant  Audit  Reports.  Some  of  the  paras  /  performance  audit  reports  are  also selected by COPU for examination every year. During examination of such paras, oral evidence from representatives of PSU Management / Ministry is also taken by the COPU.

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