CAG flags irregularities in NRC update, moots fixing of responsibility

STAFF REPORTER

GUWAHATI: The latest report of the Comptroller and Auditor General of India (CAG) has highlighted that there were "various irregularities in utilization of fund, including excess and inadmissible payment to vendors" in the National Register of Citizens (NRC) update process, and the report has recommended fixing of responsibility on both the State Coordinator of NRC (SCNRC) and the System Integrator, Wipro Limited.

The CAG report, which was tabled in the Assam Legislative Assembly on Saturday, notes that the NRC updation process started in December, 2014 with an initial project cost of Rs 288.18 crore, but ultimately the cost escalated to Rs 1,579 crore till March, 2022 due to time overrun.

The report states: "In NRC updation process, a highly secure and reliable software was required to be developed; audit, however, observed lack of proper planning in this regard to the extent that 215 software utilities were added in a haphazard manner to the core software. These were done without following the due process of either software development, or selection of vendor through eligibility assessment following a national tendering. Haphazard development of software and utilities for NRC data capture and correction posed the risk of data tampering, without leaving any audit trail. The audit trail could have ensured accountability for the veracity of NRC data. Thus, the intended objective of preparing a valid, error-free NRC has not yet been met despite direct expenditure of Rs 1,579 crore, as well manpower cost of deployment of a large number of government servants ranging from 40,000 to 71,000".

As such, the CAG report recommends that "responsibility of the SCNRC should be fixed and action taken in a time-bound manner for excess, irregular and inadmissible payment made to the vendor".

Secondly, the CAG report recommends that "penal action needs to be initiated against the System Integrator (M/s Wipro Limited) for violation of the Minimum Wages Act as payments were made to operators at a rate less than the minimum wages".

Thirdly, the report recommends that "accountability of SCNRC, as Principal Employer, should also be fixed for not ensuring compliance with the Minimum Wages Act".

The report further states that the response made in this regard by state government clarified that the entire NRC update project was done under the supervision and guidance of the Supreme Court and the state government was only providing logistical support. The state government's response further indicated that the SCNRC, who was carrying out the updation work under the supervision and guidance of the Supreme Court, was solely responsible for the irregularities discussed in the CAG report.

The report says, "However, as the NRC process was implemented out of public funds, the state government/SCNRC were expected to ensure compliance with financial rules and regulations on both regularity and propriety for all expenditure incurred".

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