Five watchdogs kept surplus funds outside govt accounts

The countrys apex auditor,the Comptroller and Auditor General of India (CAG),today rapped regulators including market regulator Sebi and IRDA for retaining surplus funds to the tune of Rs 1,747 crore outside the government account at the end of March 2009.

Scrutiny of annual accounts of five regulatory bodies Sebi (Securities and Exchange Board of India),IRDA (Insurance Regulatory & Development Authority),PFRDA (Pension Fund Regulatory and Development Authority),CERC (Central Electricity Regulatory Commission) and PNGRB (Petroleum & Natural Gas Regulatory Board) revealed that these bodies were retaining their surplus funds generated through fee charges,unspent grants received from government aggregating to Rs 1,747.37 crore at the end of March 2009, CAG said in its report tabled in Parliament. This was in contravention of constitutional provisions and instruction of the finance ministry,CAG added.

The finance ministry had directed all ministries and departments of the government in January 2005 to ensure that funds of regulatory bodies are maintained in the public accounts.

Further,the CAG also mentioned that there is an understatement of closing balance of Universal Service Obligation Fund by Rs 18,193 crore. A total universal service levy of Rs 26,164 crore was collected from telecom operators during 2002-03 to 2008-09 but a disbursement of only Rs 7,971 crore was made. During 2008-09,an excess disbursement of Rs 270.21 crore was made which was in contravention to the rule that no money should be withdrawn from Consolidated Fund of India.