CAG pulls previous AIADMK govt over purchase of imported sand

CHENNAI: The Comptroller and Auditor General has pulled up the state government and the Water Resource Department over the delay in framing of guidelines for sale of imported sand and the consequent injudicious decision of the previous AIADMK government to purchase sand from an importer had resulted in non-realisation of Rs 10.10 crore from stored sand even after a lapse of four years.

In the compliance audit for the year ended March 2022, the CAG said that after the union government allowed import of natural sand in November 2014 due to shortage of sand prevailed in the country, a private company imported 55,000 metric ton of sand from Malaysia in October 2017 through the Tuticorin port.

It said when the importer transported a portion of sand through lorries, it was seized by the police in Kanyakumari district citing lack of permits.

With the sand mining and sale was exclusively done by the WRD department, the Thoothukudi district collector ordered the port to seize the imported sand until it receives valid permit.

However the importer approached the Madras High Court stating that the Tamil Nadu Minor Minerals Concession Rules would not be applicable to imported sand and got an order in its favour in November 2017. The government's writ appeal was also dismissed by the court in January 2018. Subsequently, the Thoothukudi district collector moved the Supreme Court with an appeal petition.

Meanwhile, the WRD in December 2017 asked the government to issue guidelines to regulate the sale of imported sand by allowing it to store and sell imported sand.

After the regulation was notified, the government informed the SC that only WRD was allowed to sell imported sand and it is ready to purchase the sand from the importer.

Thereby, it brought the 50,000 MT of imported sand at Rs 2,050 per MT and "deposited (October 2018) Rs 10.76 crore in the Supreme Court Registry while pleading that the Court may release the deposited amount to the Importer only after proceeds from the sale are accrued to the government." As of January 2023, only 3,003 MT of sand was sold by WRD and balance stock was lying unsold, the CAG noted.

The VOC port has levied Rs 47 lakh as storage fee till July last year.

Meanwhile the government has stated that the sale rate has been reduced to Rs 1,556 per MT (Rs 7,000 per unit) to clear the stock soon to avoid the increasing Port rent.

Despite that, WRD could not sell any significant quantity of the sand.