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

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.