₹6cr-road-in-submergence-zone,-₹260cr-unaccounted-for:cag-report-reveals-5-mp-municipal-corporations-cannot-account-for-shelter-fees

A report by the Comptroller and Auditor General (CAG), presented in the Madhya Pradesh Legislative Assembly on 20 February, has uncovered widespread irregularities across 14 government departments during the period 2018 to 2023. The findings highlight serious lapses in the Public Works Department (PWD), Town and Country Planning (TCP), municipal corporations, and the School Education Department. Among the most striking revelations are the construction of a four-and-a-half-kilometre road in Raisen district in an area due to be submerged within days, excess road construction in Vidisha and Narmadapuram districts causing a loss of ₹15.80 crore, and the inability of five major municipal corporations to account for ₹259.17 crore collected as shelter fees. Town and country planning: Failure of Urban governance Absence of systematic Urban planning The CAG audited planned urban development in five major municipal corporations, Bhopal, Indore, Gwalior, Jabalpur and Ujjain, between 2018 and 2023. Ten key deficiencies were identified. TCP failed to prepare any regional plan other than for the Bina Petrochemicals and Industrial Region. Bhopal continues to operate under its 2005 Master Plan, as no updated plan has been published. For development plans in Ujjain, Gwalior, Jabalpur and Indore, TCP did not seek stakeholder input. Furthermore, none of the five municipal corporations prepared zone-level infrastructure plans, contributing to the proliferation of illegal colonies and slums. Inaction against violations TCP did not act promptly on 126 complaints regarding illegal marriage gardens, nor did it enforce rules relating to encroachment on drainage land. Colonisers were permitted to release mortgaged plots before completing essential development work. Municipal corporations failed to collect GST on supervision fees, resulting in a revenue loss of ₹96 lakh. After granting colony development and building permissions, officials did not monitor construction activity adequately. Physical verification of 142 buildings and 43 colonies revealed multiple violations, including a lack of minimum open spaces, absence of basements and water harvesting systems, and encroachment on government land. Additionally, colleges, resorts and IT parks were constructed without TCP approval. ₹259 crore shelter fees unaccounted for The CAG found that municipal corporations did not open separate bank accounts to deposit additional shelter fees collected from colonisers. Instead, the funds were merged into general accounts. Indore, Bhopal, Jabalpur, Gwalior and Ujjain municipal corporations collected a total of ₹259.17 crore. Since these funds were not held separately, their utilisation cannot be determined. Only Indore Municipal Corporation stated that it maintained a separate account and used approximately ₹163 crore for houses under the Pradhan Mantri Awas Yojana. However, CAG deemed this utilisation improper, as PMAY has a separate budget allocation, and using shelter fees for this purpose contravenes provisions of the Municipal Act, 1998. No system to detect illegal construction The audit found that TCP lacked any independent monitoring mechanism to identify illegal construction. Despite public complaints, inspections were not conducted in several cases. In 2020–21, the Bhopal Collector informed the Municipal Corporation about 255 illegal colonies and urged action. Even after three years, no action had been taken. In Indore, Ujjain and Gwalior, of 1,331 illegal colonies identified, 479 were declared habitable. For the remaining 852, FIRs were registered against colonisers, but further action is unclear. Jabalpur Municipal Corporation failed to provide colony details altogether. School Education: Severe teacher shortages The CAG report highlights significant disparities in the pupil-teacher ratio (PTR). In Tikamgarh higher secondary schools (Classes 11 and 12), one teacher is responsible for 112 students, compared to the state average of one teacher per 40 students. Statewide, the average PTR is 79.8:1 in certain categories, while Ashok Nagar records 66:1. Across middle, secondary and higher secondary schools, the state averages are 37:1, 40:1 and 54:1 respectively. However, PTRs in Ashok Nagar, Mandla, Ratlam, Satna, Shahdol, Shivpuri and Tikamgarh significantly exceed these averages. Tikamgarh’s middle school PTR stands at 57:1, while Ashok Nagar’s secondary level PTR is 66:1—26 points above the state average. The total number of schools declined from 89,338 in 2018–19 to 67,004 in 2019–20, a 25 per cent reduction. This resulted from the ‘One Campus, One School’ consolidation scheme. Public works dept: Financial and procedural lapses Excess road construction In Narmadapuram and Vidisha, six Major District Roads funded by the Asian Development Bank were built 24 kilometres longer than approved. Against a sanctioned length of 103.50 km, 127.65 km was constructed, violating loan conditions and causing a loss of ₹15.80 crore. Road built in submergence area In Raisen district, a 28.10 km road from Udaipur–Bamora–Pathari to the Bina River route was constructed at a cost of ₹47.07 crore. Of this, 23.60 km was designated as a Major District Road. Although the Water Resources Department approved the Hanauta Irrigation Project in September 2018, knowing 4.40 km of this road would fall within its submergence zone, the project proceeded without revising the alignment. Blacklisted firms awarded contracts The PWD has no mechanism to track blacklisted contractors. In one case, M/s Ketan Construction Limited, blacklisted in August 2018 for delayed projects, partnered with M/s Sorathia Belji Ratna Company and secured a ₹139.35 crore contract in September 2018. Under procurement rules, blacklisted firms are prohibited from participating in tenders, including through partnerships. The contract award reflects a serious failure of oversight.