BENGALURU: A major case of financial misappropriation under the Mahatma Gandhi National Rural Employment Guarantee Act has come to light in Karnataka, with the Comptroller and Auditor General of India uncovering widespread irregularities in the implementation of rural housing and infrastructure works. The findings, tabled in the state legislature, have raised serious questions about accountability, transparency, and governance at the grassroots level.
The audit report, covering the period from 2019-20 to 2023-24, examined works across 39 gram panchayats in multiple districts. A total of 2,560 housing-related works were undertaken, of which 847 projects involving an expenditure of Rs 1.91 crore were scrutinised. Shockingly, the audit found that a significant portion of these payments was irregular, with several instances indicating outright misappropriation of funds.
One of the key irregularities highlighted was the generation of fake muster rolls to claim wages under MGNREGA. In at least 462 instances, payments were made for different stages of construction, such as foundation, lintel, and roofing, even though the houses had already been completed earlier. This duplication allowed officials and beneficiaries to siphon off funds meant for genuine employment generation.
The audit also found that, in several cases, ineligible beneficiaries received payments. In eight instances, individuals without land ownership or those who had already completed houses were still paid wages under the scheme. Additionally, in 117 cases, payments exceeded the permissible limit of 90 man-days, violating established guidelines.
Even more concerning were 12 cases where no work was executed at all, yet payments were processed. Identical photographs were uploaded across different stages of work to falsely indicate progress. The use of such manipulated documentation points to a coordinated effort to defraud the system.
The irregularities were not limited to housing works. In the construction of a solid waste management shed in Kamalapur taluk of Kalaburagi district, the audit found that despite an expenditure of over ₹18 lakh, the work remained incomplete. Records such as muster rolls, bills, and geo-tagged images were allegedly tampered with. In some cases, materials were shown as purchased after the completion of the project, raising serious doubts about the authenticity of the transactions.
Similarly, in Yelburga taluk of Koppal district, a check dam project was split into two smaller works to bypass tendering norms. Fake records were created, and payments were made without proper verification. The audit also noted that supplier invoices were either missing or incomplete, yet payments exceeding Rs 10 lakh were made.
To verify the existence of works, auditors used satellite imagery and historical data, including Google Earth. In several instances, no physical structures were found at the locations where works were claimed to have been completed. This technological verification further confirmed the extent of misappropriation.
The report also points to systemic failures in monitoring and supervision. Field measurements were either not recorded or ignored, and social audits failed to detect any discrepancies. This indicates a breakdown of accountability mechanisms at multiple levels, from gram panchayats to district panchayats.
The scale of irregularities ranged from 56 per cent to 99 per cent in the sampled works, resulting in an estimated misappropriation of over Rs 1.19 crore. The CAG has termed these findings as indicative of serious lapses in implementation and oversight.
The Karnataka government has acknowledged the findings and stated that corrective measures will be taken. Instructions are expected to be issued to district-level officials, and explanations have been sought from those responsible for the lapses.
The revelations have sparked concern among policymakers and the public alike, as MGNREGA is a crucial scheme aimed at providing livelihood security to rural households. Misuse of such funds not only undermines the scheme’s objectives but also deprives genuine beneficiaries of their rightful support.
