CAG flags large-scale lapses in 2017 Malda flood relief in report to Calcutta HC, BJP calls it 'state-sponsored heist'

Comptroller and Auditor General of India

• CAG audit found major issues in Malda, Bengal flood relief fund distribution
• Payments were made to thousands not inspected or listed as beneficiaries
• BJP accused TMC of a Rs 100 crore scam involving relief payments misuse.

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A Comptroller and Auditor General (CAG) audit has flagged extensive irregularities in the distribution of flood relief funds following the 2017 floods in West Bengal’s Malda district, raising serious questions about beneficiary selection, documentation, and financial accountability.

The findings were placed before the Calcutta High Court in compliance with judicial directions issued in two public interest litigations alleging misuse of House Building (HB) Grants at the block level.

According to the audit document reported by News18, the CAG found widespread procedural lapses, weak verification mechanisms, and gaps in record-keeping during the disbursal of relief funds meant for flood-affected residents.

The report was submitted pursuant to a High Court order dated April 11, 2023, which directed the audit body to conduct a preliminary inquiry and present its findings for judicial consideration.

The audit noted that although flood-related damage was reported across 13 administrative blocks in Malda, relief payments were ultimately disbursed in only 12 blocks. A major concern highlighted by the CAG relates to the mismatch between inspections conducted and payments released.

According to the report, payments were released to 90,479 beneficiaries, while joint inspections were conducted for only 58,764 beneficiaries, leaving a gap of 31,715 beneficiaries (35%). This indicates that payments may have been made to ineligible individuals or to persons without lodged claims, it said.

Further discrepancies were observed in the preparation and implementation of the Priority List of beneficiaries. While the list contained 83,874 names, joint inspections were carried out for only 58,764 individuals.

This resulted in a shortfall of 25,110 beneficiaries, or nearly 30 percent, suggesting that a significant number of beneficiaries may have been included without undergoing the mandatory inspection process.

The CAG also pointed to inconsistencies between approved lists and actual payments.

“A further gap of 6,605 beneficiaries (7.3%) was found between those who received payments (90,479) and those listed in the Priority List (83,874), indicating payments to individuals not on the approved list," the report said. These gaps, the audit body observed, undermined the transparency of the selection process.

Concerns were also raised about missing documentation at the block level. In Old Malda block alone, records related to 1,904 beneficiaries could not be produced for audit scrutiny, despite funds amounting to Rs 1.11 crore having been disbursed.

The audit report noted that the block authority claimed that Form C documents were misplaced during an office shift in June 2023, but no general diary entry or missing report was filed to formally record the loss.

The audit further recorded that several block offices failed to submit both physical and digital records required for verification. “Several block authorities failed to produce editable soft copies (Excel format) of Form C, Form B, and bill-wise muster rolls related to HB Grant payments, despite repeated audit requisitions," the CAG said. It added that the absence of these records made it impossible to establish correlations between beneficiaries and payments.

As a result, the CAG said that “the selection process for 31,715 beneficiaries (35%) could not be verified, and the exact amount of HB Grants released to these beneficiaries could not be ascertained, raising significant concerns over financial accountability and compliance."

Following the submission of the report to the Calcutta High Court, the West Bengal unit of the Bharatiya Janata Party (BJP) launched a sharp political attack on the ruling Trinamool Congress (TMC).

Addressing the media in Kolkata on January 3, the BJP cited the 700-page audit report to allege what it described as a massive Rs 100 crore scam under the Mamata Banerjee-led government.

In a post on X, the BJP said the findings pointed to a “ruthless, systematic loot of public money,” alleging that genuine flood victims were denied assistance while funds were diverted to influential individuals connected to the ruling establishment. Describing the alleged irregularities as “a state-sponsored heist,” the party asserted that the report revealed an organised pattern of financial misuse.

The 700-page CAG report submitted to the Calcutta High Court has blown the lid off what could be a massive ₹100-crore scam in Malda’s flood relief funds under the TMC regime. These findings suggest a ruthless, systematic loot of public money-a state-sponsored heist where genuine… pic.twitter.com/tGONrxy93D

— BJP West Bengal (@BJP4Bengal) January 2, 2026

The BJP further alleged that 6,965 individuals received relief payments multiple times, in some cases ranging from two to as many as 42 transactions credited to the same bank account. One instance cited by the party involved a beneficiary in Harishchandrapur-2 block who allegedly received flood relief funds 42 times. It also claimed that Rs 7.5 crore was released for damage to pucca houses even though the district magistrate’s report recorded no such damage.

Additionally, the BJP alleged that 108 public representatives and government employees received benefits meant for below-poverty-line households, and that over Rs 7 crore was paid to individuals who never applied for relief.

Accusing the TMC of hypocrisy, the party said, “The TMC's DNA is built on "Churi" and "Chit-fund" culture,” and termed the alleged irregularities “state-sponsored dacoity,” demanding accountability ahead of the 2026 Assembly elections.