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CAG Unearths Major Irregularities In Odisha DMF Fund Utilisation

· India · The Hindu, Hindustan Times

The Comptroller and Auditor General of India has uncovered major irregularities in the utilisation of District Mineral Foundation funds in Odisha. Tabled in the Odisha Legislative Assembly on Monday, the audit report revealed that funds meant for mining-affected areas were diverted through a newly created category called "Common affected areas." The report noted that projects inadmissible under Odisha DMF rules were executed, with delayed identification of directly and indirectly affected people in mineral-bearing districts like Keonjhar, Sundargarh, and Jajpur. Records showed that DMF funds amounting to Rs 4,541.66 crore were sanctioned for the execution of 1,114 projects. The audit found that spending in indirectly exceeded statutory thresholds in certain districts while relying on undefined administrative categories.

Why it matters

Mismanagement of DMF funds deprives mining-affected local communities of essential welfare projects and infrastructure development intended by law.

Read the original report — The Hindu

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