A huge amount of gold and silver of nearly Rs 64 crore has been locked into the Rajasthan government’s treasury for years and not used for productive purposes, the Comptroller and Auditor General (CAG) has said.
The audit body has now suggested that the state government should auction the precious metal to reduce loss of value and unlock public resources and get rid of it as a whole from the government’s treasury.
The CAG report pointed out that the treasury holds confiscated gold and silver ornaments, bullion, and other precious items that were seized over several years in court cases, seizures, and government custody. These assets have been idle because of their high value, and the auditor wonders why there is no disposal policy.
According to the report, the stored gold and silver are worth around Rs 64 crore but the actual worth can be even higher based on the market rates now.
In recent years gold prices have increased significantly so that these assets are now in high demand.
The audit concluded that long storage of such valuable assets also prevents government revenues from being generated or spent in the service of security, maintenance, and administrative control and that without the right action, the government is still faced with the problem of safeguarding assets that could be used for public welfare and infrastructure.
The report recommended that after all legal proceedings are complete, the Rajasthan government should have a transparent mechanism for the disposal of the precious metals that have been seized and for auctioning that metal after its disposal. Such auctions may bring in huge revenues for development and public services and could assist the state in its financial position.
The government departments will then need to consider the CAG's findings and make a decision on the CAG's recommendations before making a final one. Any auction process would be subject to judicial orders, legal ownership verification, and laws from the state and any other state laws and regulations for transparency and to avoid any future disputes.
Financial experts say that governments across India are often holding confiscated valuables for long periods of time because of long legal proceedings and delays in the process of court work. As long as the ownership issue is sorted out, sold assets are sold to a broker and once that happens it is generally viewed as an efficient way to recover their value and reduce storage costs.
The above recommendation also underscores the importance of good asset management in the work of public administration. According to experts, governments should review idle assets and set out clear disposal policies that maximize the public benefit. Similar recommendations have been made in previous audit reports that have looked at the unused government land, vehicles, machinery, and seized goods.
The CAG’s observations have once again prompted the need for better financial governance and efficient utilization of public resources. If the Rajasthan government agrees to the strategy, the proposed auction will bring in crores of extra revenue and relieve the burdens of keeping high-value assets in government hands.
With gold prices still high, however, policymakers will now weigh the financial value of these long-idle assets against legal and administrative matters in making the decision.
