CAG Audit Exposes Deep Diversion of Chhattisgarh Mining Funds
Public Lokpal
July 16, 2026
CAG Audit Exposes Deep Diversion of Chhattisgarh Mining Funds
The Comptroller and Auditor General (CAG) has revealed massive irregularities in Chhattisgarh’s District Mineral Foundation Trusts (DMFTs). Instead of uplifting mining-affected communities, the state spent ₹10,253 crore with severe policy deviations.
By diluting the definition of "affected people," officials diverted ₹709.47 crore into broad freebie schemes and non-eligible urban luxuries, such as renovating government buildings, building welcome gates, and purchasing official vehicles.
Meanwhile, core beneficiaries were heavily neglected. Out of 1,734 directly impacted villages across 11 sampled districts, 44% received zero benefits, while over ₹1,060 crore was allocated before affected areas were even identified.
The audit also flagged ₹41.80 crore in wasted expenditure on incomplete assets, severe violations of open-tendering rules, and a complete lack of mandatory master plans.
The CAG has urged the state to strictly redefine beneficiaries, enforce social audits, and ensure funds directly reach displaced populations.