CAG censures MSRDC for violating Govt order on buying of luxury-cars

MUMBAI, JULY 21: The Comptroller and Auditor General of India (CAG) has passed strictures against the Maharashtra State Road Development C...

MUMBAI, JULY 21: The Comptroller and Auditor General of India (CAG) has passed strictures against the Maharashtra State Road Development Corporation (MSRDC) for violating Government Orders, while buying luxury cars for the use of its office-bearers.

According to the CAG’s report, 1999, the MSRDC had spent over Rs 25 lakh on purchase of luxury-cars, ignoring Government Orders, issued in 1991 and 1996. Through the orders, the Government had instructed all its departments and PSUs not to purchase luxury-cars like Standard 2000, Contessa and Premier 118 NE, without prior permission.

However, the MSRDC had bought three 118 NE cars at the cost of Rs 9.42 lakh for its top office-bearers including its chairman, vice-chairman & managing-director and executive director. Further, Rs 92,000 were spent on fitting air-conditioning systems in the cars. In blatant violation of the above Government Orders, the Corporation had not taken the Government’s permission while making these purchases, the CAG pointed out.

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Further, the MSRDC had purchased two Ambassador cars for its vice-chairman and managing-director for Rs 9.05 lakh.

Besides, In May 1998, the MSRDC had bought a Maruti Esteem for its chairman and then minister for public works Nitin Gadkari for Rs 6.45 lakh again without the Government’s sanction, the CAG report said.

It has asked the state government to take appropriate action against the officials responsible for the violation of the orders.