About Rs 121 crore worth of pulses, edible oils, electronic and electrical and other goods were brought into the state in just eight months. But there are no records for about 60,835 transit passes given to the transporters. As a result of this, the state government has lost about Rs 4.85 crore as revenue in the form of VAT.

The vigilance and enforcement (V&E) department recently conducted a survey on the functioning of the border check posts. The commercial taxes department was found to have failed in its duty to curb this illegal goods transportation.

Every trader moving goods from one state to another via AP has to obtain a transit pass at the entry check post and surrender the same at the exit check post as a proof that the cargo is not offloaded in the state. The exit check post officials will then match the passes with their counterparts at the entry.

In case the entry check post does not receive the original transit pass within 30 days of it being issued, a 'mismatch' report has to be prepared and sent to the commercial tax officer concerned for further action. The department can ban the vehicle from entering the state as well as take action against the erring trader.

As against 4,28,618 passes issued at all the 15 check posts at the state border only 3,67,783 were surrendered at the exit point from April to December in 2006. The fate of the 60,835 passes issued at the entry check posts is not known. The records of 50,854 passes were found missing at Purshothampuram check post in Srikakulam district. It was followed by Bheemunivaripalem and Naraharipet where records of 5,912 and 2227 transit passes respectively were found missing.

The 15 check posts in the state are located at Kodikonda, Chiragpally, Zaheerabad, Madnoor, Saloora, Purushothampuram, P Konayavalasa, Tadukupet, Palamaneru, Nagalapuram, Naraharipet, Bhoraj, Bhainsa, Wankidi and Tada.

The V&E in its report said the details of the blacklisted vehicles were not communicated to the exit check post either.

The department observed that 38 per cent of the transit passes were not surrendered at the integrated check posts at Purushothampuram in Srikakulam district.

Following these revelations, the department recommended to the principal secretary, revenue department, for a direction to the commissioner of commercial taxes to monitor the functioning of the check posts.