Daijiworld Media Network – Bengaluru
Bengaluru, Mar 29: A social audit report has uncovered the misuse of Rs 669.92 crore under the Mahatma Gandhi National Rural Employment Guarantee Scheme (NREGA) in Karnataka within a single year.
The report reveals that Rs 2.89 crore was disbursed in the names of deceased individuals, with 6,050 such cases identified across various districts in the state.
Social auditors at the district and taluk levels regularly review accounts of NREGA projects through monthly meetings. During the 2022-23 audit of gram panchayats and implementing agencies across Karnataka’s 31 districts, auditors found documented evidence of financial irregularities amounting to Rs 669.92 crore.

The report highlights multiple violations, including wage payments without actual work, overspending beyond the allocated budget, diversion of NREGA funds to other schemes, and wage disbursement in the names of deceased individuals. Additionally, funds were misused despite the presence of defects in various projects, and many projects were executed without proper documentation. It was also found that mandatory nameplates were not installed, and tax deductions were not accounted for.
NREGA was introduced in 2013-14 to tackle unemployment and provide work opportunities in rural areas. While numerous projects have been undertaken under the scheme, officials have failed to maintain proper financial records. The lack of documentation has raised concerns about large-scale fund misappropriation.
Citing the report, the commissioner of the rural development and panchayat raj department wrote to all zilla panchayat chief executive officers (CEOs) on October 10, 2024, instructing them to recover the misused funds. However, four months have passed, and no action has been taken, raising doubts about the commitment of officials to accountability.
Officials held responsible
The report notes that prior notices were issued to gram panchayats and implementing agencies regarding the social audit dates. However, on the scheduled audit day, officials failed to provide necessary documents, obstructing the verification process. The gram panchayat development officer (PDO) and the panchayat president have been held accountable for financial mismanagement.
Recovery cells remain inactive
As per regulations, recovery cells must be established at the district level to recover misused NREGA funds. However, in most districts, these cells are non-functional due to the inaction of zilla panchayat CEOs, delaying the recovery process.
In response to an RTI query by social activist Y D Kunnibavi, the Haveri zilla panchayat chief accounts officer stated that key positions such as district planning officer and accounts officer-2 remain vacant, making it difficult for the recovery cell to function effectively.
Unaccounted expenditure of Rs 4,500 crore?
Since the launch of NREGA in 2013-14, approximately Rs 4,500 crore in wage payments for various projects executed until 2022-23 remain undocumented. This amount has been marked as ‘objectionable expenditure’, and officials have been repeatedly instructed to provide supporting documents. However, no records have been submitted to date.