Over Rs 108 cr diverted from CM’s Nagarothana scheme, finds CAG report

In contravention of guidelines, the city corporations of Ballari, Tumakuru and Vijayapura have diverted Rs 108.75 crore of funds, meant for the ‘Chief Minister’s Nagarothana scheme’, towards other projects, the Comptroller & Auditor General (CAG) has said.

The CAG’s performance audit on the ‘Mukhyamantrigala Nagarothana scheme (phase-3) for city corporations’ was tabled in the Karnataka Legislative Assembly on Friday.

The Nagarothana scheme (phase-3) at an estimated cost of Rs 1,000 crore was launched to upgrade infrastructure in 10 city corporations, with each one getting Rs 100 crore.

The performance audit covered the period 2014-15 to 2020-21 in Ballari, Mysuru, Tumakuru and Vijayapura.

According to the CAG findings, “In contravention of the scheme guidelines, the test checked city corporations diverted Rs 108.75 crore (40 per cent of the total expenditure of Rs 269.28 crore) towards work taken up under other schemes.”

It was towards paying their contribution amounts for other schemes- AMRUT, Rajiv Gandhi Awas Yojana and 24×7 water supply- or on works being executed under other grants,” it said.

This deprived the city corporations of the full benefit which was to be accrued from the scheme, the CAG said, as it rejected the government’s claim that this was not diversion but utilisation of funds towards other schemes.

“Scheme guidelines specifically prohibited funding of works taken up under other schemes. Reply was also silent regarding utilisation of scheme funds for ineligible components such as payment of land compensation, construction of building etc,” it added.

Further pointing out that appointment of three project management consultants (PMC) for Belagavi, Davangere, Hubballi-Dharwad, Mysuru, Shivamogga, Tumakuru and Vijayapura were incorrect, the CAG said, undue favour led to works worth Rs 14.63 crore being awarded to these ineligible consultants.”

“They did not meet the selection criteria and were liable to be rejected,” it said.

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