TN paid Rs 13.9 crore more to buy items from TANSI

The Comptroller and Auditor General (CAG) report said that the Director of Collegiate Education (DCE) bought tables chairs, desks and blackboards for Rs 44.49 crore from TANSI. The report further said that in 2017, to enable TANSI to compete with other small scale industrial unit, the state notified TANSI as a preferred unit for the purchase of wooden and steel furniture by government departments through spot procurement. 

The audit authorities observed that spot procurement involved buying of products from showrooms or markets without placing orders or paying an advance. But, bulk procurement of furniture did not qualify for spot procurement. The DCE, however, placed orders with TANSI, paid advance and the goods were manufactured and supplied to colleges at different locations after two or three months. 

In order to ascertain the economy in procurement, the audit sought and obtained corresponding rates of furniture from Tamil Nadu Khadi and Village Industries Board (TNKVIB), another public sector body, which manufactures furniture items. "It was observed that the rates of furniture purchased from TANSI were much higher than the rates of TNKVIB’," the report said adding through TNKVIB was on same footing with TANSI, the government in higher education department obtained the rates only from TANSI and placed orders with them. 

"Hence, they bought furniture at an inflated rate and spent  Rs 13.92 crore unnecessarily," the report said.