Chandigarh, June 4 -- The Chandigarh Transport Undertaking (CTU) lost over Rs.5 crore due to financial irregularities, including failure to make recoveries from government departments, underutilisation of commercial assets, and short recoveries from contractors during the financial year 2024-25, an audit by the Comptroller and Auditor General (CAG) revealed. Among the most glaring findings of the report was the role of a consultancy, RINA Consultancy, appointed to monitor the implementation of the intelligent transportation system (ITS). Auditors found that the consultancy, which was responsible only for monitoring and evaluation of the project, recommended waiver or reduction of penalties imposed under the service-level agreement (SLA) even though it was not authorised to do so. SLA penalties are recommended when the service provider fails to meet agreed-upon metrics like uptime, response times, or delivery milestones. In one instance (Quarter 11 of 2024), a penalty of Rs.63.2 lakh, calculated for service deficiencies, was reduced to just Rs.640 based on RINA's recommendation. The audit observed that the consultancy's recommendations resulted in undue financial benefit to the contractor and weakened enforcement of SLA provisions, directly impacting service delivery of ITS modules such as ticketing systems, GPS tracking, passenger information systems and depot management. Auditors have recommended a comprehensive review of all 13 quarterly reports submitted under the project, as only four were test-checked. The audit also found that CTU had failed to recover nearly Rs.1.2 crore from AMNEX, the firm which was awarded the ITS contract. The original contract value of Rs.210 crore was later revised to Rs.234.1 crore. After 34 buses were condemned, reducing the project scope from 392 to 358 buses, CTU deducted only Rs.80.6 lakh from the contractor even though the total recoverable amount - based on the average ITS installation cost of Rs.5.9 lakh per bus - was pegged at Rs.2.03 crore. The audit further flagged discrepancies in the procurement of hardware and software, such as components being procured less than the required numbers. Closed-circuit (CCTV) camera installations also did not conform to the prescribed requirement of five cameras per bus. Auditors noted that these discrepancies could indicate excess billing, misallocation or weak verification mechanisms. No response was furnished by CTU to audit queries on this issue. The audit also flagged underutilisation of commercial assets. Shops and office spaces at inter-state bus terminus (ISBT), Sector 17, ISBT-43 and the mini bus stand remained vacant for extended periods during 2024-25. These properties are typically leased through auction with provisions of annual rent escalation of 10%, making them a significant revenue source. Due to non-allotment, CTU incurred a potential revenue loss of Rs.3.7 crore during the period under review. Auditors have pointed out the absence of timely re-auctioning and lack of proactive asset management as key reasons behind the losses....