{
  "type": "article",
  "title": "Audit Uncovers Widespread Irregularities Across Government Departments in Odisha Through 2024",
  "summary": "The latest compliance audit by the Comptroller and Auditor General outlines extensive administrative lapses, unapproved spending, and unrecovered dues across multiple state sectors in Odisha.",
  "content": "A comprehensive review of administrative operations across several public departments in Odisha has revealed serious lapses in fiscal management, infrastructure development, statutory clearances, and natural resource stewardship. The compliance audit conducted by the Comptroller and Auditor General of India, covering records up to March 31, 2024, evaluated transactions tested during the 2023-24 financial cycle alongside earlier unresolved matters that could not be featured in previous legislative presentations. The investigative inquiry focused on key establishments including Fisheries and Animal Resources Development, Forest, Environment and Climate Change, Steel and Mines, Water Resources, and Works departments.\n\nDefunct Water Systems Deprive Tens of Thousands of Safe Supplies\nField verifications conducted across six gram panchayats located in the Bargarh and Dhenkanal districts disclosed that nine solar water supply installations set up between 2019 and 2021 at an expenditure of approximately Rs 43.30 lakh were lying completely inoperative. The extended failure to operationalize and maintain these clean drinking water facilities effectively deprived an estimated 28,820 rural inhabitants of access to safe tap water supplies.\n\nEncroachment on Public Assets Stifles Local Revenue\nIn one panchayat samiti and 17 gram panchayats situated in Bargarh and Dhenkanal, 25 newly constructed rural infrastructure assets were found to be under unauthorized occupation. These structures, built with public capital amounting to Rs 2.59 crore, encompassed three functional market complexes and 22 community welfare halls. The unauthorized capture of these premises deprived local panchayati raj institutions of potential lease and rental income that should have accrued directly to local development treasuries.\n\nFlawed Project Scopes Lead to Depleted Allocations\nAcross nine panchayat samitis and 10 gram panchayats in Bargarh, Dhenkanal, Khordha, and Nabarangpur districts, 35 separate local schemes carrying a cumulative outlay of Rs 3.73 crore were initiated without prior definition of the complete scope of civil works. This structural deficiency resulted in the early exhaustion of sanctioned financial provisions before deliverables were achieved. Within Dhenkanal district, Central Finance Commission grant assistance amounting to Rs 1.39 crore was diverted toward ineligible activities including the construction of administrative office quarters, purchase of consumer electronics, and funding for cultural functions.\n\nExecution of Civil Contracts Bypassing Competitive Tendering\nMandatory public procurement frameworks designed to ensure fairness were ignored in two panchayat samitis and eight gram panchayats spanning Bargarh, Dhenkanal, Khordha, and Nabarangpur. A total of 14 separate civil works valued at Rs 3.30 crore were awarded without floating open competitive tenders. In each of these individual instances, estimated project values exceeded Rs 10 lakh, a threshold requiring strict adherence to public bidding protocols.\n\nUnlawfully Retained Social Security Pension Funds\nIn the Nimapada panchayat samiti, administrative inspections established that between 2017 and 2020, as many as 21 block-level staff members and 26 village panchayat functionaries unlawfully retained undistributed welfare pensions totaling Rs 77.80 lakh. Instead of remitting uncollected pensions back into the official state exchequer, these funds were held in personal custody without authorization.\n\nAbsence of Land Banks Triggers Widespread Encroachment\nProvisions embedded in Odisha Right to Fair Compensation and Transparency in Land Acquisition, Rehabilitation and Resettlement Rules mandate the systematic compilation of village-level land banks. The persistent absence of this basic land inventory contributed to the unauthorized occupation of 668.893 acres of prime government land, with an estimated asset valuation standing at Rs 597.87 crore. Furthermore, scrutinizing records across 24 sampled tehsils demonstrated that 504.768 acres of agricultural land had been diverted toward commercial non-agricultural undertakings such as private educational centers, factories, and religious institutions without proper statutory sanction.\n\nDiversion of Forest Territory and Wildlife Sanctuary Land Sales\nIn six sampled revenue circles, 568.876 acres of demarcated forest land were repurposed for non-forestry uses without securing statutory prior clearances from the central government. In an even more concerning infraction of ecological protection norms, 13.65 acres of protected habitat located within an official wildlife sanctuary were illegally partitioned into 156 residential plots and sold off, directly violating the Wildlife Protection Act.\n\nLax Contracting and Avoidable Costs in Rural Road Schemes\nThe national flagship connectivity drive, Pradhan Mantri Gram Sadak Yojana, and its upgraded third phase initiated in 2019 to improve existing links, exhibited severe contractual deficiencies between 2019 and 2024. Certain work orders were assigned to technically ineligible construction firms. In 127 contracted assignments, authorities neglected to recover liquidated damages amounting to Rs 40.55 crore from defaulting builders. Concurrently, systemic failure to carry out periodic maintenance across 30 road stretches generated avoidable financial burdens totaling Rs 23.02 crore.\n\nIrregular Spending and Equipment Failures in Educational Institutions\nFinancial management in the education sector revealed multiple irregularities. At the Badachana Women Higher Secondary School, an amount of Rs 57.95 lakh from High School Transformation Programme funds was disbursed despite the institution being a private entity imparting instruction to classes 11 and 12, making it ineligible for this transformation assistance. At the Ranihat High School in Cuttack, an amount of Rs 12.48 lakh drawn from the transformation scheme and Mo School Abhiyan grants was subjected to suspected misappropriation.\n\nIn Dashrathpur block, Nandipur High School issued checks routing Rs 30 lakh into a private third-party bank account rather than crediting the authorized account of the local block development officer. In Jaleswar, an expenditure of Rs 4.95 lakh for classroom desk maintenance was flagged as suspicious. In Jajpur, administrative disjointedness between OSEPA and the district collectorate led to duplicate e-content procurement from both OSEPA and EdCIL, causing an entirely wasteful expenditure of Rs 7.39 crore across 430 institutions. Furthermore, physical inspections in 54 schools revealed non-functional smart classrooms, computer setups, and science laboratories lacking water connections, gas supplies, essential reagents, and basic apparatus.\n\nUnchecked Aircraft Charters Despite Underutilized Leased Assets\nScrutiny of government-managed state aircraft and helicopter operations between April 2019 and March 2024 highlighted non-transparent procurement methods. Private operator OSS Air Management Private Limited was engaged without robust competitive bidding after authorities accepted a single-bidder arrangement, failing to ascertain true market rates, and subsequently granted periodic contract extensions through August 2024.\n\nBetween January 2019 and November 2023, state administration contracted private chartered planes on 22 occasions for long-distance inter-state travel, incurring an expenditure of Rs 6.91 crore. These flights were commissioned even while 751.34 flight hours on the state's existing leased aircraft remained idle. Similarly, 29 private helicopter hire assignments logging 100.90 flight hours absorbed Rs 1.30 crore, while 566.44 contracted flight hours on the existing aviation lease were available and unutilized.\n\nCommercial Encroachment in Ecological Zones and Fire Safety Deficits\nPermanent and semi-permanent civil infrastructure projects totaling Rs 28.84 crore were undertaken within ecological reserves, national parks, and proposed reserve forest tracts in violation of the Forest Conservation Act of 1980. These constructions included the beachfront promenade at Ramchandi, road widening works on the Puri-Konark Marine Drive corridor, and Panthasala guest facilities at Talsari. In the commercial hospitality segment, 20 state-run Panthanivas tourist lodges were found operating without mandatory fire safety clearance certificates.\n\nUnrecovered Traffic Penalties and Stalled Irrigation Projects\nField enforcement under motor vehicle laws showed systemic leakage. Enforcement officers routinely recorded only single or double infractions rather than noting all compounding offenses committed by individual vehicles, resulting in uncollected fines totaling Rs 640.87 crore.\n\nIn the water sector, minor irrigation projects suffered from poor feasibility studies and soil surveys, forcing the abandonment of seven schemes due to unavailable land acquisition and forest permits. Out of 40 projects cleared under RIDF-24, three failed to cover targeted culturable command areas. Furthermore, 271 out of 311 minor irrigation proposals, representing 87 percent of plans, lacked mandatory approval from the state high-power committee. Overall, 38 minor irrigation initiatives were awarded without statutory clearances, rendering Rs 91.57 crore of capital expenditure idle due to uncompleted headworks and distribution networks.\n\nSuspected Fictitious Payments for Pre-existing Check Dams\nUnder the Mukhyamantri Adibandha Tiari Yojana, superintending engineers across four divisions executed seven agreements for fresh check dam construction, spending Rs 4.26 crore between April 2023 and January 2025. Spatial cross-verification using Google Earth Pro satellite imagery and official geo-tags revealed that check dams already stood at the exact sites earmarked for new works, pointing to potential fraudulent disbursements totaling Rs 4.26 crore.\n\nEnvironmental Non-Compliance and Staggering Coal Extraction Dues\nIn the mining domain, 79,535 metric tonnes of minerals were extracted without consent to operate from the State Pollution Control Board, creating recoverable dues of Rs 45.59 crore. At the Kanther-Koira manganese mine, unauthorized extraction of 10,066 metric tonnes yielded an additional Rs 3.24 crore in recoverable claims. In the coal sector, two major mining operations extracted 1,17,96,540 metric tonnes of coal either beyond limits specified in environmental clearances or without clearance entirely, saddling the lessee with a calculated liability of Rs 975.57 crore representing the market value of mineral output.\n\nDistortions in District Mineral Foundation Expenditure\nSix District Mineral Foundations collected Rs 22,568.17 crore between 2015-16 and 2023-24, comprising Rs 20,795.51 crore in statutory contributions and Rs 1,772.66 crore in interest. Although 17,435 projects totaling Rs 20,947.52 crore received sanctions, none of the six foundations prepared long-term master perspective plans or established an endowment fund to sustain post-mining livelihoods.\n\nIn Keonjhar, out of 3,269 projects worth Rs 9,733.37 crore cleared between 2015 and 2024, 757 projects representing 23 percent were implemented without obtaining clearance from the managing committee or board of trustees. Sundergarh foundation approved five unsanctioned schemes valued at Rs 102.71 crore. Across Jajpur, Dhenkanal, Keonjhar, Nabarangpur, and Sundergarh, 317 schemes worth Rs 679.14 crore violated Pradhan Mantri Khanij Kshetra Kalyan Yojana guidelines, including a hockey stadium in Sundergarh costing Rs 136.77 crore. Sundergarh mobile health vans engaged 24 unregistered medical officers out of 78 doctors, disbursing Rs 7.44 crore in unauthorized salaries, while three foundations spent Rs 145.06 crore on reserving private hospital beds during the pandemic in violation of public-private partnership norms.\n\nWhat this means for you\nSystemic lapses in public asset management and financial governance directly impair the quality of essential services delivered to citizens.\n\n• Across India: Tighter administrative scrutiny is likely to be mandated across national programs and regional mining trusts. This means stricter oversight frameworks will govern how central and regional development grants are utilized nationwide.\n• In Odisha: Thousands of rural households have faced direct deprivations in potable tap water and agricultural irrigation due to stalled local schemes. School students and welfare beneficiaries in affected blocks have experienced service delivery bottlenecks firsthand.\n• State Revenue Recovery: Massive uncollected liabilities in mining penalties and traffic compoundings directly deplete the provincial treasury. Prompt enforcement by responsible agencies could recover vital capital for wider public infrastructure.\n• Ecological Security: Unsanctioned mining operations and commercial activity in protected forests degrade local ecosystems. This poses long-term risks to community livelihoods and environmental sustainability in mining-adjacent regions.\n\nWhy this happened\nThe findings stem from institutional non-compliance, deficient preliminary planning, and inadequate departmental oversight across multiple government bodies.\n\n• Lack of Feasibility Studies: Irrigation and infrastructure projects were initiated without completing land surveys or securing mandatory environmental clearances. This led to project cancellations after substantial capital had already been committed.\n• Circumvention of Bidding Protocols: Procurement guidelines were ignored by executing civil works without tenders and extending single-bid aviation contracts. This bypassed open market mechanisms designed to ensure optimal value for public funds.\n• Lax Regulatory Enforcement: Mineral extraction proceeded unchecked beyond sanctioned environmental capacities or without operational consents. Failure to enforce compliance at the mining face resulted in massive unrecovered liabilities.\n\nQuestions & Answers\n\n1. What timeframe does this compliance audit cover?\nThe compliance audit covers government transactions up to March 31, 2024, focusing on test-checks conducted during 2023-24 alongside earlier unresolved matters.\n\n2. How many citizens were affected by defunct drinking water projects?\nApproximately 28,820 people were deprived of potable water due to nine shut-down solar water systems in Bargarh and Dhenkanal.\n\n3. What is the liability calculated on excess coal extraction?\nThe calculated liability stands at Rs 975.57 crore for extracting 1,17,96,540 metric tonnes of coal without proper environmental clearances.\n\n4. How much was spent from DMF funds on the hockey stadium?\nSundergarh District Mineral Foundation spent Rs 136.77 crore on building a hockey stadium outside approved guidelines.\n\n5. What discrepancy was identified in the check dam projects?\nSatellite imagery confirmed check dams already existed at project sites, pointing to potential fictitious payments totaling Rs 4.26 crore.",
  "url": "https://trendkia.com/en/odisha/odisha-men-cag-riporta-men-bare-khulase-kai-vibhagon-men-samane-ain-gnbhira-khamiyan-40154",
  "category": "Odisha",
  "publishedAt": "2026-09-29",
  "tags": [
    "Odisha",
    "CAG Report",
    "Government Schemes",
    "Mining Irregularities",
    "Irrigation Projects",
    "Public Finance",
    "DMF Funds"
  ],
  "language": "en",
  "site": "TrendKia"
}