CAG flags Rs 148.75 crore suspected fund misappropriation in Odisha’s tribal development agencies

Audit finds personal transactions from ITDA accounts; calls for urgent review and accountability

The Comptroller and Auditor General of India (CAG) has raised red flags over suspected misappropriation of Rs 148.75 crore in Odisha. The funds, meant for tribal welfare, were allegedly diverted from bank accounts operated by engineers in 11 Integrated Tribal Development Agencies (ITDAs), according to a compliance audit report cited by PTI.

The audit, covering FY 2018-19 to 2022-23, found that junior engineers (JEs) and assistant engineers (AEs) had used government accounts for personal transactions, from ATM withdrawals and cheque payments to mobile recharges, UPI transfers, and even insurance premiums, PTI reported.

“These were indicative of suspected misappropriation of public money by the JEs/ AEs concerned,” the CAG report said as per the PTI report.

How ITDA funds were handled

The CAG reviewed 11 of the 22 ITDAs in the state. It found that during 2018–23, Rs 621.79 crore was transferred into 71 bank accounts for departmental works. Of these, 67 accounts reflected questionable transactions worth Rs 148.75 crore.

The ITDAs, set up in 1979-80, are tasked with implementing socio-economic welfare schemes for Odisha’s tribal population living in Scheduled Areas. But the audit found lapses across financial management, transparency, and governance.

Gaps in accountability

Shockingly, the CAG noted that none of the sampled ITDAs had prepared annual accounts, despite it being a legal requirement under the Societies Registration Act, 1860.

This lack of financial statements made it impossible to track losses, wasteful expenditure, or inefficiencies, effectively weakening oversight on how public funds were spent.

The audit also flagged irregularities in how infrastructure projects were executed. Instead of following the Odisha Public Works Department (OPWD) Code, contracts were handed out to contractors without open and transparent tender processes.

CAG’s recommendations

The report called on the SC/ST Development Department to:

Immediately stop the practice of JEs and AEs operating bank accounts for departmental works.
Enforce compliance with the OPWD Code for project execution.
Conduct a comprehensive review of all bank transactions carried out by engineers across ITDAs.
Fix responsibility on officials found guilty of misappropriation.

With crores of rupees allocated for education, healthcare, and livelihood schemes, the suspected diversion raises serious concerns about whether resources are truly reaching Odisha’s tribal communities.