The Mizoram State Transport Department, one of the major source of tax revenue for the Government, has been rapped by the latest Comptroller and Auditor General (CAG) report for losing revenue of about Rs. 2 crore due to non-levy of fines, non-renewal of fitness certificates and demand notices to vehicles plying in the State.

According to the report, the department did not levy fines amounting to Rs. 1.36 crore on vehicle owners of other states plying in Mizoram without valid permits in contravention of the Motor Vehicles (MV) Act, 1966.

The report also rapped the department for its failure in issuing demand notices for motor vehicle tax in 2838 cases resulting in loss of revenue of Rs. 70.51 lakh. Fitness certificates, required to be renewed after expiry of two years of validity period were not renewed in 1018 cases with consequent non-realisation of inspection fee of Rs 4.75 lakh realisable for renewal of the certificates in these cases.

The report also stated that the State Transport Department did not maintain proper records to watch recovery of composite fee due from other states.

In order to keep a watch over the demand, recovery, computation of arrears, the composite fee actually received and the follow-up action for realisation of composite fee due from other states in respect of motor vehicles covered by national permits, it is necessary to have complete details of all the permits issued by other states for operating vehicles in other states, but, the report stated that such information was not available with the State Transport Authority.

In the absence of such an information, the composite fee due from other states could not be ascertained, hence it could not be recovered by Mizoram.

The CAG also noticed (in December, 1997) that during November 1993 to January 1995, as many as 65 bank drafts for Rs. 1.07 lakh were sent back to the issuing bank/state transport authorities of other states for revalidation or correction, but there was no record to show that these drafts were received back and subsequently deposited into the bank.

As such the entire amount of Rs 1.07 lakh remaining out of government account till the date of audit (December, 1997), the State Government did not formulate any system for monitoring and evaluation of the performance of the department, the report added.