Karnataka: Audit finds gross financial irregularities in Dept. of Youth Empowerment and Sports

The Comptroller and Auditor General (CAG) of India has flagged gross financial irregularities in the functioning of the Department of Youth Empowerment and Sports (DYES) in Karnataka.

The report, tabled in the Legislative Assembly on Thursday, noted that the proposed Karnataka Sports Act and related regulations have not been enacted even seven years after the State introduced a Comprehensive Sports Policy in 2018 aimed at building a transparent and inclusive sports ecosystem.

Documents not submitted

According to the report, during 2019–20 to 2023–24, the Sports Authority of Karnataka (SAK) and the General Thimmayya National Academy of Adventure (GETHNAA) received grant-in-aid of ₹83.57 crore and ₹15.85 crore, respectively. However, utilisation certificates and audited expenditure statements for these funds were not submitted.

The audit found that the department and GETHNAA disbursed cash awards and scholarships worth ₹11.47 crore, but supporting documents for payments amounting to ₹8.46 crore were not produced. In addition, irregular cash incentives totalling ₹4.54 crore were paid to 316 sportspersons in violation of scheme guidelines.

E-payment to non beneficiary

Scrutiny of e-payment records further revealed that 62 payments shown as transferred to beneficiaries were instead credited to one of three bank accounts belonging to a person who was not a beneficiary.

The CAG pointed to the poor development of sports infrastructure. As many as 57 works worth ₹45.64 crore remained incomplete, while four projects had not even commenced as of March 2024.

The report observed overcrowding in sports hostels and an imbalance in the deployment of coaches, including the absence of athletics coaches in Bengaluru Urban district despite high enrolment, while available coaches in other districts remained underutilised.

It noted that non-implementation of key preventive health services during 2018–23 resulted in the forfeiture of ₹39.84 crore in grants from the Employees’ State Insurance Corporation (ESIC), depriving beneficiaries of essential preventive healthcare services.

Further, digital health initiatives such as telemedicine and the Dhanwantri portal remained underutilised. Full payments were released to contractors without obtaining completion certificates or verifying the delivery and operational readiness of medical equipment, resulting in idle expenditure of ₹7.74 crore, the report said.