CAG flags Rs 1,229 crore in BBMP works (2017–2022); govt drops objections, no recoveries made

CAG audit of BBMP works between 2017–2022 raised objections and recommended recovery of Rs 1,229 crore from contractors and officials, but the State government dropped them after seeking explanations.

The Comptroller and Auditor General (CAG) audit of the Bruhat Bengaluru Mahanagara Palike (BBMP) works from 2017–2022 has flagged irregularities and recommended recovery of Rs 1,229 crore from erring contractors and officials. However, the Karnataka government has chosen to drop these objections after examining explanations from respective unit heads.

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The issue came to light in the Karnataka Legislative Council on August 14, when Deputy Chief Minister and Bengaluru Development Minister D K Shivakumar responded to a question by nominated MLC H P Sudham Das. While Das sought to know the amount of “scam” unearthed, Shivakumar clarified that the CAG did not term the works as scams but rather flagged them as “faulty.”

He further stated that no FIRs have been filed against contractors since the audit did not classify the works as wrongful. Instead, BBMP has initiated Departmental Enquiries (DE) against several officials linked to the projects. When asked how much had been recovered, the Minister confirmed that none of the money recommended by CAG for recovery had been collected, as the government dropped objections based on explanations provided by unit heads and action-taken reports.

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It may be recalled that the Congress government had earlier formed four teams to probe BBMP works undertaken during the BJP regime. However, the move was later withdrawn in light of the Justice H.N. Nagamohan Das Commission inquiry.

Civil society groups have raised sharp criticism over the government’s handling of the audit findings. N S Mukunda of Bengaluru Praja Vedike said that not recovering funds from contractors or officials for faulty works renders the audit process meaningless. He further suggested that each corporation in Bengaluru should have an internal audit department staffed with CAG auditors, so objections are raised before payments are cleared rather than after the fact.

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