Gujarat Police Billing Scandal: CAG Exposes Rs 2.51 Crore Revenue Loss
A significant billing discrepancy within the Gujarat Police has resulted in a staggering Rs 2.51 crore hole in public revenue, as revealed by a recent Comptroller and Auditor General (CAG) audit. The investigation uncovered 590 cases where bandobast and escorting services were undercharged, failing to adhere to mandated rates.
Audit Findings and Revenue Shortfalls
According to a 1999 government resolution and subsequent standing orders, police units are required to recover charges at double the pay and allowances of deployed personnel, including house rent allowance (HRA) where applicable. However, an audit covering April 2023 to March 2025 identified a startling pattern of non-compliance. Many offices were billed at single rates instead of double, or police officials made calculation errors.
The most severe lapse was found in the office of the superintendent of police, Ahmedabad rural, where Rs 1.89 crore was short-levied across 302 cases due to the application of single rates. In Bharuch, police under-recovered Rs 41.48 lakh in 123 cases for the same reason. Mehsana police reported a shortfall of Rs 15.39 lakh in 109 cases.
Widespread Discrepancies and Systemic Issues
Additional discrepancies were noted in SRPF Group IX in Vadodara, Gandhinagar police, and Ahmedabad city police. These were primarily driven by failures to include HRA and incorrect application of prescribed rates. The total Rs 2.51 crore shortfall excludes an additional Rs 45.17 lakh in Goods and Services Tax (GST), as per the report.
The CAG report highlighted several systemic issues, including:
- Inconsistent interpretation of billing rules across different units.
- Frequent calculation errors in the recovery process.
- A lack of scrutiny and supervision in billing procedures for deployments.
Response and Recommendations
While some offices have issued revised demand notices and initiated recovery efforts, action remains pending in numerous cases. Officials from multiple districts stated that verification of records is ongoing and corrective measures will be implemented.
The issue was formally flagged to the state government in August 2025, but no response was received by November despite reminders. The CAG audit has recommended stronger internal checks and uniform implementation of prescribed rates to prevent future revenue losses.
This billing mess underscores critical gaps in financial oversight within Gujarat Police, calling for immediate reforms to safeguard public funds.
