Ministry of Urban Development has a loss of Rs. 2.30 crore, due to not levied of additional tax.

Additional tax of Rs. 2.30 crore was not levied on 312 JNNURM buses plying outside the designated municipal areas.

No transport vehicle of the State Transport Undertaking (STU) shall be used in any public place in Uttar Pradesh unless additional tax prescribed under the UPMVT Act, 1997 (as amended on 28 October 2009) has been paid. Motor vehicles of STU operating within the limits of Municipal Corporation or Municipality are however exempted from payment of additional tax.

Audit test-checked the records of five RTOs during the year 2019-20. Crosscheck of the list of Jawaharlal Nehru National Urban Renewal Mission (JNNURM) buses with routes defined under municipal corporations revealed that 312 out of 661 JNNURM buses under four State Transport Undertakings were plying outside the designated municipal areas of these cities for periods between August 2017 and January 2020, for which they were liable to pay an additional tax of Rs. 2.30 crore. The concerned RTOs did not check the route chart of these buses and therefore failed to notice that these JNNURM buses were plying outside the municipal areas as defined by the municipal corporation. As a result, an additional tax of Rs. 2.30 crore was not levied as detailed in Table-4.3

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