CAG flags large-scale irregularities in rural housing works
August 31, 2026
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Home Politics

Karnataka: CAG flags large-scale irregularities in rural housing works; BJP slams government over ‘systemic failure’

A Comptroller and Auditor General of India report has exposed large-scale irregularities in Karnataka’s MGNREGS housing works, including fake muster rolls and payments without work. Opposition leaders have accused the state government of systemic failure, demanding strict action and a probe into the misuse of public funds

IndreshIndresh
Mar 27, 2026, 07:30 am IST
inPolitics, Bharat, Karnataka
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BENGALURU: Serious irregularities and suspected fraudulent payments in rural housing works under the Mahatma Gandhi National Rural Employment Guarantee Scheme have come to light, with the Comptroller and Auditor General of India indicting lapses in implementation and monitoring. The findings, tabled in the Karnataka Legislature, have triggered sharp criticism of the state government, with allegations of large-scale misuse of public funds.

According to the audit report, between 2019-20 and 2023-24, a total of 2,560 housing works were undertaken across 39 gram panchayats, involving an expenditure of Rs 5.04 crore. Of these, the CAG scrutinised 847 works worth Rs 1.91 crore and found that the expenditure itself was irregular, raising serious questions about governance and accountability.

The report highlights that in as many as 462 cases, muster rolls were generated and payments released under MGNREGS for various stages of construction, such as foundation, lintel, and roofing. However, records from housing scheme portals indicated that these houses had already been completed, suggesting duplicate or fraudulent claims.

Further, in eight cases, payments were made for works on land that either did not exist or had already been developed. In 117 cases, payments exceeded the permissible number of person-days. In 12 instances, payments were made despite no actual work being executed, with identical photographs uploaded for multiple stages of construction.

The audit covered regions including Aland and Kamalapur in Kalaburagi, Yelburga in Koppal, Maddur in Mandya, Sagar and Shikaripura in Shivamogga, and Tiptur and Turuvekere in Tumakuru. The findings indicate irregularities ranging from 56 per cent to as high as 99 per cent in the sampled works, suggesting what critics describe as “systemic failure” in oversight.

Opposition leaders have squarely blamed the state government, alleging that such widespread discrepancies could not have occurred without administrative negligence or tacit approval. They argue that the findings expose a breakdown in monitoring mechanisms at multiple levels, including gram panchayats and district authorities.

The CAG report also points to a lack of proper measurement records, the absence of mandatory documentation, and the failure of social audits to detect irregularities. “These lapses indicate inadequate supervision and have resulted in leakage and misuse of MGNREGS funds,” the report noted.

In one glaring example, a solid waste management shed project in Kalaburagi showed manipulated records, including altered geo-tagged photographs and missing muster roll data. Payments worth lakhs were made despite the work being incomplete or non-existent.

Similarly, in Yelburga taluk, a check dam project reportedly involved fabricated documents and payments exceeding Rs 14 lakh, even though satellite imagery suggested no such structure existed at the site. The Opposition has accused the government of failing to uphold transparency and accountability and has demanded a high-level probe into the alleged scam. “This is not an isolated issue but a clear indication of misuse of taxpayer money. The government must fix responsibility and take strict action,” leaders said.

Topics: BJPCAG ReportIrregularities in rural housing works
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