Why the CAG is Trending in India: Odisha DMF Audit Findings and Political Fallout

What the CAG audit found in Odisha’s DMF

The Comptroller and Auditor General (CAG) examined the District Mineral Foundation (DMF) funds in Odisha for the period FY 2015‑16 to FY 2023‑24. According to the audit, ₹26,602 crore was collected from mining leaseholders and ₹25,969 crore was sanctioned for projects [1]. Close to 48 % of the sanctioned amount was spent in only six of the state’s 30 districts during the previous BJD government’s tenure.

Key irregularities highlighted

The audit flagged several projects that violated DMF rules. Notable examples include ₹136 crore for a hockey stadium, over ₹145 crore paid to private hospitals for Covid‑related services, and ₹3.29 crore spent on hiring two bikes, an e‑rickshaw and a car to transport 60,000 MT of waste in Rourkela [1]. In Keonjhar, 23 % of approved DMF projects (757 out of 3,269) were implemented without Executive Committee or Board of Trustees approval, causing interest losses of ₹84.51 crore; similar losses were noted in Dhenkanal, Mayurbhanj and Nabarangpur [2].

Impact on villages and financial losses

The CAG reported that ₹983 crore of DMF money was spent in villages not directly affected by mining, while 584 mining‑affected villages received no DMF‑funded projects or funds [2]. Additional lapses included ₹103.35 crore unutilised and returned, ₹898.48 crore parked in agencies’ bank accounts, ₹59.25 crore neither utilised nor refunded, ₹207.68 crore losses under the Eco Retreat programme, ₹6.49 crore wasteful expenditure on the Puri Prasad project, ₹8.16 crore on the incomplete Bindusagar floating musical fountain, and ₹1.42 crore unrecovered from a private boat‑rental agency [2].

Political reactions between BJP and BJD

The BJP in Odisha has used the CAG report to attack the previous BJD government, alleging mismanagement and corruption in DMF utilisation. BJP spokesperson Dr Tapan Chand stated that the findings exposed serious deficiencies and claimed the BJD had weakened the DMF mechanism [2]. The BJD has rejected these accusations, calling them politically motivated amid the ongoing MMDR Amendment Act debate. Google Trends shows a sharp rise in searches for “cag” in India, reflecting public interest in the audit and its political fallout [3].