CAG Flags Irregularities In 2017 Malda Flood Relief Distribution, Report Submitted To Calcutta HC

According to the CAG report, there were serious procedural lapses, inadequate documentation, and weak verification mechanisms in the selection of beneficiaries and disbursement of flood relief funds. (File photo)

The Comptroller and Auditor General of India (CAG) has identified serious irregularities in the distribution of flood relief funds related to the 2017 floods in Malda district of West Bengal.

According to the CAG report, there were serious procedural lapses, inadequate documentation, and weak verification mechanisms in the selection of beneficiaries and disbursement of flood relief funds.

The findings were submitted to the Calcutta High Court pursuant to court directions in two Public Interest Litigations—WPA (P) 316 of 2021 and WPA (P) 375 of 2022—alleging misappropriation of government funds through irregular disbursement of House Building (HB) Grants at the block level.

This was in response to the HC order on April 11, 2023, directing the CAG to conduct a preliminary investigation and place a report before the court for consideration.

In the report, the CAG reported that though damage was reported across 13 blocks, actual disbursement covered only 12 blocks.

“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 stated.

It further said that the Priority List included 83,874 beneficiaries but joint inspections covered only 58,764 beneficiaries, resulting in a difference of 25,110 beneficiaries (30%), suggesting inclusion without mandatory inspection.

“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 CAG said.

It said: “In Old Malda Block, documents relating to 1,904 beneficiaries were not produced for cross-verification, despite ₹1.11 crore having been disbursed.”

The audit body said that the block authority stated that Form C was misplaced during an office shift in June 2023 but no general diary or missing report was lodged in this regard.

“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. “Due to non-submission of required physical and digital records, cross-verification and correlation of beneficiary details could not be established.”

“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,” it added.