Centre Withholds ₹254.73 Crore to Himachal Pradesh Over Disaster Fund Misuse: CAG Flags Major Irregularities

A recent report by the Comptroller and Auditor General of India has brought serious concerns to light regarding how disaster relief funds were managed in Himachal Pradesh. The findings suggest not just financial mismanagement, but also systemic gaps that could directly impact disaster preparedness in the state.

🚨 Centre Withholds Funds Amid Concerns

According to the report presented in the state Assembly, the Centre withheld a total of ₹254.73 crore under the National Disaster Response Fund (NDRF). This decision came after repeated instances of misutilisation of funds meant for disaster management between 2019 and 2023.

Earlier, in 2019-20 alone, ₹61.07 crore under the State Disaster Response Fund (SDRF) was withheld for similar reasons. The issue didn’t stop there — it continued over the years, raising red flags at multiple levels.

One of the key reasons behind this was the unusually high opening balances in SDRF accounts. Instead of being properly utilised or accounted for, large sums remained stuck due to unresolved accounting issues. Surprisingly, the state also failed to follow up on ₹61.02 crore that was deducted due to incorrect financial reporting.

💸 Funds Lying Idle, Opportunities Lost

The report highlights another concerning issue — ₹122.27 crore was left idle in savings accounts instead of being invested as per guidelines. This resulted in a direct loss of potential interest income, something that could have been used for strengthening disaster response systems.

Beyond finances, structural issues were equally alarming. The state disaster management plan was not updated regularly, and the State Disaster Response Force was operating with significant staff shortages — only 193 out of 326 positions were filled.

Even emergency infrastructure suffered. District Emergency Operation Centres remained under-equipped despite funds being available, while data related to thousands of development works remained incomplete or outdated.

🌾 Irrigation Projects Stuck on Paper

The audit also revealed serious gaps in irrigation planning under the Pradhan Mantri Krishi Sinchayee Yojana (PMKSY). While an ambitious plan worth ₹7,602.95 crore was prepared, only a small fraction of projects actually received approval.

Out of 6,478 proposed schemes, just 129 were sanctioned between 2017 and 2022. Even more concerning, no approvals were given for two consecutive years (2019–21), pointing towards administrative delays or inefficiencies.

In several cases, project reports lacked essential groundwork like surveys, leading to incomplete infrastructure and inadequate water supply for farmers.

🌳 Forest Department Under Scanner

The audit didn’t spare the Forest Department either. Irregularities were found in how forest data was recorded, particularly in assessing tree density. In one instance, saplings were not counted, potentially leading to an underestimation of forest value.

This could have resulted in a loss of around ₹1.33 crore under CAMPA funds — money meant for environmental conservation and afforestation.

⛏️ Illegal Mining Raises Alarms

The mining sector painted an equally troubling picture. Over 40,000 cases of illegal mining were reported between 2018 and 2023, with more than 8,000 cases in just one year (2022-23).

The audit found that the department failed to create annual action plans for five years, affecting inspections, revenue collection, and overall monitoring. A revenue shortfall of ₹1.81 crore across multiple mining leases was also identified.

📊 Thousands of Utilisation Certificates Still Pending

Another major issue flagged was the delay in submission of utilisation certificates (UCs), which are crucial for ensuring transparency in public spending.

Out of ₹7,887.44 crore linked to over 22,000 pending certificates, only a portion has been cleared. Even now, 2,521 certificates worth ₹3,324 crore remain pending, raising serious concerns about accountability.

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