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Short levy of water charges results in loss to HMWSSB

Special Correspondent

Comptroller and Auditor General report indicts water board for lapses


  • In Patancheru division, old rates are collected despite two rounds of tariff revision
  • Validity period of agreement expired in 2000 but the board has not renewed it

    HYDERABAD: Short levy of water charges by five divisions of the Hyderabad Metro Water Supply and Sewerage Board (HMWSSB) to 129 multi-storied buildings and the BHEL MIG Employees Cooperative Housing Society has set it back by a staggering Rs. 4.81 crores.

    Unearthed in a Comptroller and Auditor General report scrutiny, the lapse, however, is just the tip of the iceberg. Of the 5,985 multi-storied buildings on its list, the scrutiny was carried out with respect to only 129 buildings in five divisions. "The loss of revenue will be enormous if tabulated for all the buildings and housing colonies in all the divisions," the report maintained, indicting the water board for the glaring lapses.

    Tariff revision

    The board had revised water tariff twice in June 2002 and February 2005 on the grounds that the existing rates were insufficient to meet the operational and maintenance costs. However, the levy of water charges in these cases has defeated the very purpose adversely affecting revenue flow.

    In Patancheru division, where the water board had entered into an agreement with BHEL MIG Employees Cooperative Housing Society - officials continued to collect at the old rates notwithstanding the two rounds of tariff revision resulting in short levy of Rs. 1.81 crores for the period from October 1998 to March 2006. Worse, the validity period of the agreement had expired in 2000 itself and the board officials neither made an effort to renew it.

    Ditto with the 129 multi-storied buildings in Red Hills, Goshamahal, East Marredpally, SR Nagar and Narayanguda divisions, where the bills were raised on actual consumption at Rs. 6 per kilo litre, instead of levying minimum charges on agreed quantities (30 kl/15 kl) as envisaged in the tariff, resulting in short levy to the tune of Rs. 2.67 crores.

    Further, in 29 cases of these buildings where the consumption exceeded the agreed quantum, the board collected at the rate of Rs. 6 per kl instead of Rs. 35 kl/Rs.25 kl resulting in short levy of Rs. 29.34 lakhs. Of this, Narayanguda division accounted for Rs. 22.92 lakhs, SR Nagar 3.61 lakhs, Goshamahal 1.69 lakhs, Red Hills 0.90 lakhs and East Marredpally Rs. 0.22 lakhs.

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