Diversion of funds, ineligible beneficiaries in JNNURM: CAG

Tags: CAG, JNNURM, News
Diversion of funds totalling nearly Rs 115 crore and ineligible beneficiaries getting benefits were among the several lapses found by CAG in implementation of JNNURM, the Centre's flagship urban infrastructure development scheme.

Government auditor Comptroller and Auditor General(CAG) also said that a few cases of unauthorised and irregular expenditure and even instances of undue favours to contractors have come to light.

The CAG in its report on "Performance Audit of Jawaharlal Nehru National Urban Renewal Mission(JNNURM)" tabled in Parliament today said only 22 of the 1,517 housing projects approved under the scheme were completed by the due date of March 2011.

Noting that the Union ministries were "not equipped" to monitor a project of this magnitude, the CAG said the Centre must identify the deficiences in monitoring the sceheme both at the central and state level and address them during the next two years.

The 103-page report with annexures observed that a crucial objective of bringing about reforms in the governance of Urban Local Bodies (ULBs) could not be achieved through the scheme.

"We observed that a total of 1,517 and 1,998 housing and infrastructure projects respectively were approved for implementation between 2005 and 2011. However, as on 31 March 2011, in respect of the housing projects, only 22 of the 1517 approved projects were completed," the CAG report said.

"The status of dwelling units within these housing projects was only marginally better but remained low as only 26 per cent of approved dwelling units had been completed. In respect of urban infrastructure projects, we observed that out of the 1,298 projects approved, only 231 projects (18 per cent) were completed," the report stated.

The report pointed out that there were eight cases of diversion of funds in Urban Infrastructure projects in Andhra Pradesh, Chattisgarh, Haryana, Jharkand, West Bengal and Himachal Pradesh. The amount diverted was Rs 114.68 crore,it said.

The diversion was for purposes other than those admissible under JNNURM and in some cases even for non-JNNURM purposes. In one instance, funds were utilised for payment of salary to the municipal staff.


  • Centre and states must cooperate to get the economy moving

    Mirroring the previous three quarters, another round of tepid corporate earnings announcements are expected in a few days from now.


Stay informed on our latest news!


Sarthak Raychaudhuri

vice-president, HR, Asia South Whirlpool of India

GV Nageswara Rao

MD & CEO, IDBI Federal Life

Timothy Moe

Goldman Sachs


Arun Nigavekar

Ranking of higher education institutions

Given the massive popularity and growing influence of world university ...

Rajgopal Nidamboor

The pursuit of serene stillness

It may sound strange — that every change in the ...

Dharmendra Khandal

How positive intervention can go a long way

Ten years ago, Sariska tiger reserve declared that there were ...


William D. Green

Chairman & CEO, Accenture