CAG Raises Alarm Over Misuse of Funds in Mizoram's Green India Mission

Concerns Over Fund Management in Kolasib District

Aizawl, Aug 31: The Comptroller and Auditor General of India (CAG) has expressed serious concerns regarding the management of ₹9.19 crore allocated under the Green India Mission (GIM) in Kolasib district. The audit report suggests potential misappropriation of the entire sum and calls for a government inquiry.

In March 2023, the State Forest Development Agency (SFDA) allocated these funds to the Forest Development Agency (FDA), Kolasib, for executing GIM initiatives through 12 Village Forest Development Committees (VFDCs). However, the audit revealed that instead of distributing the funds to the village committees, the FDA withdrew the full amount in cash.

The CAG's findings, presented in the Mizoram Legislative Assembly by Chief Minister Lalduhoma on August 27, indicated a lack of documentation proving that ₹9.07 crore intended for the VFDCs was ever transferred to them. Additionally, there was no evidence regarding the expenditure of the remaining ₹12 lakh allocated for office costs.

As a result, the auditors have urged the Mizoram government to investigate how the funds were utilized and to take necessary actions.

According to the GIM Implementation Guidelines from 2014, funds should flow from the SFDA to the relevant FDA based on the approved Annual Plan of Operation (APO). The FDA is then responsible for transferring these funds to the Joint Forest Management Committees (JFMCs), as mandated by the Gram Sabha, to carry out GIM activities at the village level.

The audit found that this established process was not adhered to in Kolasib.

Bank records from the SFDA confirmed that ₹9.19 crore was transferred to the FDA, Kolasib, on March 30, 2023. The FDA's work program for the years 2021-22 and 2022-23 had allocated ₹9.07 crore for the 12 VFDCs and an additional ₹12 lakh for office expenses.

However, instead of distributing the ₹9.07 crore among the VFDCs, the FDA withdrew the entire sum in cash on April 27, 2023.

The CAG pointed out that this cash withdrawal violated the stipulations outlined in the GIM Implementation Guidelines.

Moreover, auditors found no records indicating that the ₹9.07 crore had reached the 12 VFDCs. Bank statements for all committees showed no corresponding deposits during the financial years 2022-23 and 2023-24.

The audit report highlighted that the lack of documentation confirming the transfer of funds, along with the absence of a traceable record for the cash withdrawn by the FDA, raised suspicions of misappropriation.

This issue was further compounded by the FDA, Kolasib's claims in physical and financial progress reports, which stated that the entire amount had been utilized for GIM activities.

In a response submitted in January 2025, the department asserted that the funds had been released to the VFDCs and that relevant documents had been provided. However, the CAG dismissed this explanation.

Additionally, the auditors found no records to support the expenditure of the ₹12 lakh allocated for office expenses at the FDA, Kolasib.

Another significant issue raised was the inability to produce supporting vouchers for the entire ₹9.19 crore expenditure. Despite requests from the audit team, the necessary vouchers and records were not made available for review.

“The absence of ₹9.07 crore in the bank accounts of any of the 12 intended VFDCs strongly suggests potential misappropriation of public funds,” the report concluded.

Consequently, the CAG has called for a formal investigation by the State government into the utilization of the ₹9.19 crore allocated to the FDA, Kolasib, and has urged the government to take appropriate actions based on the investigation's findings.