Archive · 29 Sep 2026
CAG Flags Odisha DMF Spending on Stadium and Offices
The government collects money from mining companies to help people and places affected by mining.
Auditors checked how six Odisha districts used this money.
They found that Sundargarh spent Rs 136.77 crore on a large hockey stadium, even though the scheme rules did not allow that use.
Some money was also spent on offices, vehicles, school events and other activities.
In two districts, many projects were built in villages not affected by mining, while some affected villages got no projects.
The auditors also found that the districts had not prepared required long-term plans.
Some projects were approved without the required permission, and agencies did not return money and interest left over after projects ended.
The audit report was presented to the Odisha Assembly, and the BJP used the findings to criticize the previous BJD government.
The CAG found Rs 136.77 crore in Sundargarh DMF funds was used to construct a hockey stadium, which was not permitted under PMKKKY guidelines.
Six audited DMFs collected Rs 22,568.17 crore and sanctioned 17,435 projects worth Rs 20,947.52 crore between 2015-16 and 2023-24.
Keonjhar and Sundargarh spent Rs 983.32 crore on projects in 976 non-mining-affected villages, while 584 affected villages received no projects.
Sundargarh DMF funds were used for patrol vehicles, office and Collector’s residence renovations, school functions, COVID incentives and other questioned expenses.
The audit reported weak collection controls, missing plans, unauthorized projects, unreturned funds and interest, incomplete works, and alleged excess payments.
- Who
- The Comptroller and Auditor General of India audited DMF operations in Sundargarh, Keonjhar, Jajpur, Mayurbhanj, Dhenkanal and Nabarangpur; the BJP criticized the previous BJD government over the findings.
- What
- The audit identified irregular collection, approval and spending of District Mineral Foundation funds intended for mining-affected people and areas.
- When
- The audit covered 2015-16 to 2023-24, and the report was tabled in the Odisha Assembly on Monday.
- Where
- The reported irregularities occurred in Odisha, particularly in Sundargarh, Keonjhar and Jajpur; one questioned payment involved a private hospital in Rourkela.
- Why
- The audit examined whether mining contributions were properly collected and used for activities permitted under PMKKKY and Odisha DMF rules.
Audit and Government Accountability
Political Response and Defense
Use of DMF funds
Audit and Government Accountability
The CAG said spending on the hockey stadium, administrative facilities, patrol vehicles, school functions and other activities was irregular or outside PMKKKY guidelines.
Political Response and Defense
The BJP said the findings showed that the previous BJD government had failed mining-affected and tribal communities; BJD leaders said they would respond after reviewing the report.
Targeting mining-affected areas
Audit and Government Accountability
The CAG reported that Rs 983.32 crore was spent in 976 non-affected villages in Keonjhar and Sundargarh, while 584 affected villages received no projects.
Political Response and Defense
The articles report no substantive response from the BJD to the audit’s specific findings.
Collection and financial controls
Audit and Government Accountability
The CAG identified incorrect contribution rates, failures to reassess contributions, non-levy of interest on delayed payments, weak reconciliation, missed interest earnings and unreturned balances.
Political Response and Defense
The audit recommended that the Odisha government improve account maintenance, recover accrued interest, complete projects, ensure fund utilization and obtain utilization certificates.
- Audited districts
- Sundargarh, Keonjhar, Jajpur, Mayurbhanj, Dhenkanal and Nabarangpur
- DMF collections
- Rs 22,568.17 crore, including interest, collected by the six audited DMFs
- Projects sanctioned
- 17,435 projects worth Rs 20,947.52 crore
- Hockey stadium
- Rs 136.77 crore spent by Sundargarh DMF on construction
- Non-affected villages
- Rs 983.32 crore spent on projects in 976 non-affected villages in Keonjhar and Sundargarh
- Unserved affected villages
- No projects were implemented in 488 directly affected and 96 indirectly affected villages
- Unreturned funds
- Implementing agencies in Jajpur, Keonjhar and Sundargarh had not returned Rs 470.25 crore in unspent funds and Rs 26.51 crore in interest
- COVID hospital payment
- Sundargarh DMF paid Rs 109.45 crore against a required Rs 98.85 crore to a private Rourkela hospital, an alleged excess of Rs 10.60 crore
