Various departments in Maharashtra ignored over 10,000 audit queries, says CAG; flags ₹891 crore possible lapses

The Comptroller and Auditor General (CAG) of India has flagged “systemic deficiencies” in Maharashtra’s governance, identifying ₹891 crore in possible financial irregularities across more than 10,000 audit queries that various departments ignored despite repeated reminders over a decade.

The CAG, in the report tabled in the recently concluded budget session of the State Assembly, criticised the delay by departments in filing action taken notes (ATNs), stating that the State’s inability to address queries in 2,408 inspection reports (IRs) showed “legislative oversight”.

The CAG has raised queries over the accounts, some dating back over a decade, but the departments have left them unanswered.

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As many as 2,408 IRs, containing 10,340 paragraphs (queries), were pending settlement as of June 2023, reflecting a significant backlog, even as a separate local audit for 2022-23 raised 2,119 objections involving revenue implications of ₹891.29 crore, against which only ₹25.58 crore was recovered during the year.

The CAG report stated that IRs and audit paragraphs form the core of financial oversight, as they are issued immediately after local audits to flag irregularities to departmental heads.

Individual paragraphs represent specific audit observations such as misappropriation, unauthorised expenditure and non-compliance with rules, requiring timely responses and corrective action.

Persistent pendency of audit paragraphs, delays in furnishing ATNs and weak compliance with audit observations point to “systemic deficiencies in ensuring executive accountability and legislative oversight”, the report said.

Cluster-wise data showed that sectors including public works, water supply and sanitation, and roads and bridges accounted for the highest pendency, with 789 IRs containing 3,604 paragraphs.

The law and order sector, including Home and Legal Affairs, had 454 reports with 1,690 paragraphs, while Environment, Science and Technology accounted for 388 reports with 1,471 paragraphs.

The transport sector, including entities such as the State Road Transport Corporation, the Maharashtra Maritime Board, and the Airport Development Company, had 320 IRs with 1,461 paragraphs pending, followed by energy and power with 266 reports containing 1,142 paragraphs.

Industry and commerce had 184 reports with 918 paragraphs, while information technology and communication recorded seven reports with 54 paragraphs.

The report also flagged non-compliance with recommendations of the Public Accounts Committee and the Committee on Public Undertakings, noting that out of 186 recommendations made between 2010-11 and 2015-16, as many as 117 ATNs from 12 departments remained pending as of June 2023.