Rs. 500 crores worth cheques not encashed, says CAG report
Posted on: 22/May/2013 5:56:52 PM
A CAG report has revealed that there has been a loss of approximately Rs. 500 crores to the Tamil Nadu exchequer due to cheques that have not been encashed. The report says that some of the cheques are 25 years old. According to the Pay and Accounts Office (PAO) Manual and the Tamil Nadu Treasury Code, cheques will have to encashed within three months. If not, the PAO or Treasury must send a notice to the payee. If no reply has been received from the payee, the cheque will be cancelled.
‘The state treasury has wasted over Rs 500 crore by letting government cheques lapse because shortage of staff made it difficult for them to follow up with the payees who failed to encash them… Three pay and accounts offices (PAOs) in Tamil Nadu — South, East and Madurai —(have said) that between them, 49,568 cheques for Rs 518.50 crore remained uncashed at the end of July 2012. Some of those cheques were as old as 25 years’, said the report.
