EVEN nearly four decades after its formation, the Gujarat Backward Class Development Corporation still "lacks a proper recovery system" as it is "not even able to recover the principal amount from the beneficiaries", highlights the corporation's auditor’s report, a part of the annual administrative report for 2023-2024. "On going through the records, it is being observed that the corporation is organizing collection drills and sending collection teams etc. But still recovery is very slow as compared to total volume of recovery and beneficiaries,” the report tabled in the Legislative Assembly on Thursday stated. The corporation is required to pay interest on loans taken from the NBCFDC (National Backward Classes Finance and Development Corporation) and the NMDFC (National Minorities Development and Finance Corporation). "As an explanation provided to us that the Corporation is working on Non-Profit motive basis, the interest charged by Corporation is equal to the interest payable by the Corporation to NBCFDC and NMDFC. However, due to lack of proper Recovery System, the Corporation is not even able to recover the principal amount from the beneficiaries. So, it is recommended to improve the recovery procedure," it further states. The Gujarat government, realising the need for an autonomous body "for the upliftment of the socially and educationally backward classes", moved the Gujarat Backward Class Development Corporation Bill in the Assembly, which was passed in 1985. The corporation started functioning with the first meeting of the Board of Directors in 1987. At the time of formation of the corporation, the state government had provided an initial capital fund of Rs 15 crore. At present, the provision is Rs 50 crore. Further, on the recovery, the report points out to the manner in which the recovery amount is accounted. "It is being noticed during audit procedure that the amount recovered from beneficiaries is directly deposited by beneficiary in the Corporations’ Bank account in cash. The corporation is in the process of establishing the system to get this information timely and regularly. But still it is not fully and properly established. So, it must be taken care of so that it can be settled with zero deficiency...Even all scheme wise data is also not traceable etc. So extra efforts may be made to make it more useful, and it must be tallied with the outstanding balances with balance sheet," it states.
