215 software utilities added haphazardly, massive irregularities in utilisation of NRC funds: CAG Report

Assam National Register of Citizens (NRC) final list which is yet to come to light has again raised questions on the authenticity of the entire process.

The latest CAG report from the Comptroller and Audit General of India reveals various irregularities in the utilisation of funds including excess and inadmissible payments to vendors.

Further, the audit also observed a lack of proper planning of NRC to the extent of 215 software utilities were added in a haphazard manner to the core software in the updation process.

It is to be mentioned here that the updation of NRC in Assam commenced in December 2014 with an initial project cost of Rs 288.18 crore and with a deadline for completion of work within 14 months, i.e. February 2015. 

However, the timeline for the project kept extending leading to the publication of the final draft in August 2019. 

Due to time overrun, and significant change in the scope of the initially conceptualised NRC updation software, the project cost escalated from Rs 288.18 crore to Rs 1,602.66 crore (expenditure of RS 1,579.78 crore reported) by March 2022. 

On the other hand, in the NRC updation process, highly secure and reliable software was required to be developed; the audit, however, observed a lack of proper planning in this regard and to the extent of 215 software utilities were added in a haphazard manner to the core software, posing a risk of data tampering, mentioned the CAG report.

Also Read: Prateek Hajela compromised with the purity of NRC: Assam CM Himanta Biswa Sarma

Notably, these were done without following the due process of either software development or selection of vendors through eligibility assessment following a national tendering.

Haphazard development of software and utilities for NRC data capture and correction posed the risk of data tampering, without leaving any audit trail.

The audit trail could have ensured accountability for the veracity of NRC data. Thus, the intended objective of preparing a valid error-free NRC has not yet been met despite the direct expenditure of Rs 1,579.78 crore as well as the manpower cost of deployment of a large number of government servants ranging from 40,000 to 71,000.

Test checks of records by audit disclosed various irregularities in the utilisation of funds including excess and inadmissible payments to vendors.

In the NRC updation process, highly secure and reliable software was required to be developed; the audit, however, observed a lack of proper planning in this regard and to the extent of 215 software utilities were added in a haphazard manner to the core software.

These were done without following the due process of either software development or selection of vendors through eligibility assessment following a national tendering.

Meanwhile, the Comptroller and Audit General of India have set a few recommendations to the state goverment which:

> Responsibility of the SCNR should be fixed and action taken in a time-bound manner for the excess, irregular and inadmissible payment made to the vendor.

> Penal action needs to be initiated against the System Integrator (Ms Wipro Limited) for violation of the Minimum Wages Act as payments were made to operators at a rate less than the minimum wage.

> Accountability of the SCNR, as Principal Employer, should also be fixed for not ensuring compliance with the MW Act.

As per the RFP, the SI (M/s Wipro) would be responsible for the design, development and maintenance of NRC Software solutions including the digitisation of Citizen Application Forms. 

In addition to the Software developed by M/s Wipro, it was seen that another vendor. Bohniman Systems Pt Ltd (BSPL) was also engaged (12 September 2014) for the work of Development of Digitised Legacy Data (DLDD) at a cost of Rs 4.05 crore.

The SI, after the commencement of the NRC project, prepared three software, viz., (a)
NRC Central Application (DC), (b) NRC Seva Kendra 70 Series Application (CRCR) and (c) NRC Seva Kendra Application (LRCR) based on the requirements as mentioned in the RFP.

Subsequent to the project initiation, 61 software utilities were additionally prepared (March 2016 to March 2018) for NRC Project, based on separate documented System Requirement Specifications (SRS). 

Further, the Department issued 15 work orders based on the Change Request (CR) proposals submitted by the SI and BSPL for the creation of 154 new software/ applications/ utilities. The CR proposals were stated to be required as the previous software/ applications were incapable of NRC Project. However, details of the requirements of the SCNR for the development of this 215 software were not found on record.

While the initial single comprehensive NRC Software was to be developed through WIPRO at a cost of Rs 11.05 crore, through various CRs, and the development of associated software utilities, the cost of software development escalated to the tune of Rs 49.92 crore. 

Similarly, in the case of M/S BSPL for DLDD work also, the cost escalated to Rs 26.61 crore due to several CRs against the original amount of 3 4.05 crore.

The above observations were discussed with the State Government in an exit meeting held on 18 December 2021. 

The Principal Secretary, Government of Assam, Home and Pollical Department, in his reply dated 28 January 2022 on the observations raised in the audit, stated the following:

• NRC was a project of the Government of India, with the Registrar General of India (RGD as custodian and the NRC updation exercise was being carried out by SCNR on behalf of RGI.

• The entire NRC project was done under the supervision and guidance of the Supreme Court and State Government was only providing logistic support.

• The role of the State Government was limited to only providing logistic support in keeping with the Supreme Court order date 23 September 2014 to SCNR to submit the reports to the court in sealed cover indicating the steps and measures that are required to be taken to facilitate the work of NRC updation.

The above information will be laid before the court by the State Coordinator without any consultation with any authority whatsoever and without reverting to the State Government or any authority in the Union Government", and its subsequent order dated 13 July 2017 where the Supreme Court had observed, "we do not appreciate any authority interfering in the matter of preparation and publication of draft NRC when this court has been in seisin of the matter for fairly a long time and has been monitoring the process."

• A number of cases on the NRC-related matter have been filed in the Supreme Court by many organisations and individuals. Further, RGI is yet to publish the final NRC.

The reply indicated that as per the State Government, the State Coordinator, NRC, who was carrying out the updation work of NRC under the supervision and guidance of the Supreme Court, was solely responsible for the irregularities discussed in this Report.

However, as the NRC project was implemented out of public funds, the State Government/ SCNR was expected to ensure compliance with financial rules and regulations on both regularity and propriety for all expenditures incurred.

The National Register of Citizens (NRC) was first prepared in 1951 based on Census 1951 under the directive of the Ministry of Home Affairs (MHA) in respect of each village showing the houses in a serial order and indicating against each house or holding the number and names of persons staying therein and in respect of each.