122 KENDRIYA VIDYALAYA SANGATHAN AND GUJARAT VIDYAPITH MINISTRY OF HUMAN RESOURCE DEVELOPMENT PUBLIC ACCOUNTS COMMITTEE (2018-19) ONE HUNDRED AND TWENTY SECOND REPORT SIXTEENTH LOK SABHA LOK SABHA SECRETARIAT 8_ NEW DELHI NEW DELHInew LY 2 PAC NO. 2161 ONE HUNDRED AND TWENTY-SECOND REPORT PUBLIC ACCOUNTS COMMITTEE (2018-19) SIXTEENTH LOK SABHA KENDRIYA VIDYALAYA SANGATHAN AND GUJARAT VIDYAPITH MINISTRY OF HUMAN RESOURCE DEVELOPMENT Presented to Lok Sabha on: 18.12.2018 Laid in Rajya Sabha on: 18.12.2018 L O K S A B H A S E C R E T A R I A T N E W D E L H I December, 2018/ Agrahayana, 1940 (Saka) 3 CONTENTS PAGE NO. COMPOSITION OF THE PUBLIC ACCOUNTS COMMITTEE (2018-19) COMPOSITION OF THE PUBLIC ACCOUNTS COMMITTEE (2017-18) INTRODUCTION PART - I Introduction I Kendriya Vidyalaya Sangathan - Irregular expenditure on Project KendriyaVidyalayas II Irregular payment of Service Tax III Gujarat Vidyapith A. Non follow up of norms of reservation. B. Irregularities in Appointments and Drawl of pay scales for various posts PART - II Observations/Recommendations of the Committee APPENDICES I. Minutes of the Eighth sitting of the Public Accounts Committee (2017-18) held on 23 August, 2017 II. Minutes of the Tenth sitting of the Public Accounts Committee (2017-18) held on 27 September, 2017 III. Minutes of the Twentieth sitting of the Public Accounts Committee (2018-19) held on 5 December, 2018 4 COMPOSITION OF THE PUBLIC ACCOUNTS COMMITTEE (2018-19) Shri Mallikarjun Kharge - Chairperson MEMBERS LOK SABHA 2. Shri Subhash Chandra Baheria 3. Shri Sudip Bandyopadhyay 4. Shri Prem Singh Chandumajra 5. Shri Gajanan Chandrakant Kirtikar 6. Shri Bhartruhari Mahtab 7. Smt. Riti Pathak 8. Shri Ramesh Pokhriyal “Nishank” 9. Shri Janardan Singh Sigriwal 10. Shri Abhishek Singh 11. Shri Gopal Shetty 12. Dr. Kirit Somaiya 13. Shri Anurag Singh Thakur 14. Shri Shivkumar Chanabasappa Udasi 15. Dr. Ponnusamy Venugopal RAJYA SABHA 16. Prof. M. V. Rajeev Gowda 17. Shri Bhubaneswar Kalita 18. Shri Shwait Malik 19. Shri Narayan Lal Panchariya 20. Shri Sukhendu Sekhar Roy 21. Shri C.M.Ramesh 22. Shri Bhupender Yadav SECRETARIAT 1. Shri A.K. Singh - Additional Secretary 2. Shri T. JayaKumar - Director 3. Smt. Bharti S. Tuteja - Deputy Secretary 4. Smt. Malvika Mehta - Committee Officer 5 COMPOSITION OF THE PUBLIC ACCOUNTS COMMITTEE (2017-18) Shri Mallikarjun Kharge - Chairperson MEMBERS LOK SABHA 2. Shri Sudip Bandyopadhyay 3. Shri Subhash Chandra Baheria 4. Shri Prem Singh Chandumajra 5. Shri Nishikant Dubey 6. Shri Gajanan Chandrakant Kirtikar 7. Shri Bhartruhari Mahtab 8. Smt. Riti Pathak 9. Vacant1 10. Shri Abhishek Singh 11. Prof. Ram Shanker 12. Dr. Kirit Somaiya 13. Shri Anurag Singh Thakur 14. Shri Shivkumar C. Udasi 15. Dr. P. Venugopal RAJYA SABHA 16. Vacant2 17. Vacant3 18. Shri Bhubaneswar Kalita 19. Shri Mohd. Ali Khan4 20. Shri Sukhendu Sekhar Roy5 21. Vacant6 22. Vacant7 1 Shri Neiphiu Rioh Ceased to be a Member of Committee consequent upon acceptance of his resignation from Lok Sabha w.e.f. 22 February, 2018. 2 Shri Naresh Agrawal ceased to be a Member of Committee consequent upon his retirement from Rajya Sabha on 2 April, 2018 3 Shri Satyavrat Chaturvedi ceased to be a Member of Committee consequent upon his retirement from Rajya Sabha on 2 April, 2018 4 Elected w.e.f. 29 December, 2017 in lieu of vacancy caused due to retirement of Shri Shantaram Naik. 5 ceased to be a Member of Committee consequent upon his retirement from Rajya Sabha on 18 August, 2017 and re-elected w.e.f. 29 December, 2017. 6 Shri Ajay Sancheti ceased to be a Member of Committee consequent upon his retirement from Rajya Sabha on 2 April, 2018 7 Shri Bhupender Yadav ceased to be a Member of Committee consequent upon his retirement from Rajya Sabha on 3 April, 2018 6 INTRODUCTION I, the Chairperson, Public Accounts Committee (2018-19), having been authorised by the Committee, do present this One Hundred and Twenty-second Report (Sixteenth Lok Sabha) on 'Kendriya Vidyalaya Sangathan and Gujarat Vidyapith' based on Para Nos. 13.3, 13.7 & 13.11 of C&AG Report No. 12 of 2017 relating to the Ministry of Human Resource Development. 2. The C&AG Report No. 12 of 2017 was laid on the Table of the House on 21 July, 2017. 3. The Public Accounts Committee (PAC) selected Paras 13.3, 13.7 & 13.11 of C&AG Report No. 12 of 2017 for examination in 2017-18 and was further selected and examined by PAC in 2018-19. 4. The Public Accounts Committee (2017-18) took oral evidence of the representatives of Ministry of Human Resource Development on aforementioned paras on 23 August, 2017 and 27 September, 2017. 5. The Public Accounts Committee (2018-19) considered and adopted the One Hundred and Twenty-second Report on the afore-mentioned paras from C&AG Report at their sitting held on 5 December, 2018. The Minutes of the sittings are appended to the Report. 6. For facility of reference and convenience, the Observations and Recommendations of the Committee have been printed in bold and form Part II of the Report. 7. The Committee would like to express their thanks to the representatives of the Ministry of Human Resource Development for tendering evidence before them and furnishing the requisite information to the Committee in connection with the examination of the subject. 8. The Committee also place on record their appreciation of the assistance rendered to them in the matter by the office of the Comptroller and Auditor General of India. NEW DELHI; Mallikarjun Kharge 13 December, 2018 Chairperson 22 Agrahayana, 1940 (Saka) Public Accounts Committee 7 Part-I Report Introduction 1. The Public Accounts Committee decided to take up for detailed examination and report, Paras 13.3,13.7 and 13.11 of Audit Report no. 12 of 2017 (Compliance Audit Observations Union Government (Civil) on ‘Kendriya Vidyalaya Sangathan (KVS)’, ‘Irregular payment of Service Tax’ and ‘Gujarat Vidyapith (GVP)’ respectively pertaining to the Ministry of Human Resource Development (MHRD). I Kendriya Vidyalaya Sangathan - Irregular expenditure on Project KendriyaVidyalayas 2. According to Audit, Kendriya Vidyalaya Sangathan, an autonomous body under Ministry of Human Resource Development establishes and manages Kendriya Vidyalayas (KV). The scheme of KV had also been extended to the children of the employees of Public Sector Undertakings (PSUs)/Institute of Higher Learning owned by Government of India (GoI), at their request on the condition that all recurring and non- recurring expenditure on running these Vidyalayas would be provided by the sponsoring agencies. The annual requirements of school are required to be met by the sponsoring agency by release of budgeted funds, both recurring and non-recurring to the concerned KVs in bank account as advance in two installments i.e. in April and October of the current financial year under intimation to the Regional office and KVS, Headquarters. 3. In this regard, the Ministry submitted the following in their background note with regard to the objectives of the Kendriya Vidyalayas:- “The main objectives of Kendriya Vidyalayas are as under: To cater to the educational needs of the children of transferable Central Government employees including Defence and Para-Military Personnel by providing a common programme of education. To provide, establish, endow, maintain, control and manage schools, hereinafter called ‘the Kendriya Vidyalayas’ for the children of transferable employees of the Government of India, floating population and others including those living in remote and undeveloped locations of the country and to do all acts and things necessary for or conducive to the promotion of such schools. To pursue excellence and set pace in the field of school education; 8 To initiate and promote experimentation and innovativeness in education in collaboration with other bodies like the CBSE, NCERT etc., and To develop the spirit of national integration and create a sense of ‘Indianness’ among children.” 4. With regard to opening of Project KVs, the Ministry submitted the following:- “Kendriya Vidyalayas can be opened either in the Civil / Defence Sector or under the Project / IHL Sector. Proposals for opening of new KV is considered only if sponsored by one of the following:- (a) Ministries or Departments of the Government of India (b) State Governments c) Union Territories Administrations. Opening of Kendriya Vidyalayas under Project/ IHL Sector Apart from Civil/ Defence Sector, the Central Public Sector Undertakings/Institutes of Higher Learning (IHL)can also sponsor the Kendriya Vidyalayas subject to the following: a) The Public Sector undertaking/Institutions of Higher Learning shall bear all the recurring and non-recurring expenditure on the proposed Kendriya Vidyalaya. The administrative overhead charges from the sponsoring project/ IHL authorities will be charged @ 15% of the actual expenditure of the Project/ IHL Sector Vidyalaya. The administrative overhead charges shall be charged @15% of the actual expenditure of the project Vidyalaya. b) When there is concentration of at least 1000 employees of the Govt. of India undertaking, and when there are at least 200 children (500 children in the case of big cities) willing to be enrolled in different classes of the proposed Kendriya Vidyalayas to begin with. c) The Sponsoring Authority shall provide free of cost, suitable land and building for housing and future development of the Vidyalaya. d) The Sponsoring Authority shall provide suitable residential accommodation to the teaching and non-teaching staff of KVS on the same basis and at the same rates as prescribed by it for its own employees. e) The children of the Sponsoring Authority will get first priority in matters of admission. However, the children belonging to the eligible categories will be considered against seats available after accommodating the children of the employees of the Sponsoring Authority.