CAG flags major violations in Visakhapatnam Rushikonda resort project, costs surge to ₹350 crore

The Comptroller and Auditor General (CAG) has flagged serious violations in the redevelopment of the Rushikonda Tourism Resort in Visakhapatnam, including the absence of a Detailed Project Report (DPR), failure to conduct a mandatory judicial preview, and non-compliance with contract conditions. These led to a sharp rise in project cost and undue benefit to the contractor, the CAG said.

The government of Andhra Pradesh, during the tenure of former Chief Minister and YSR Congress Party’s (YSRCP) chief Y.S. Jagan Mohan Reddy, had accorded administrative sanction in March 2021 for Phase I at ₹92 crore and in June 2021 for Phase II at ₹72 crore, taking the initial cost to ₹164 crore.