Audits Comptroller & Auditor General
CAG finds MP road funds diverted to land acquisition and utility shifting
This performance audit examined the development of roads in Madhya Pradesh by the Public Works Department (PWD) for the period from 2018-19 to 2022-23.
It evaluated financial management, planning, tendering, execution, monitoring, and quality control of road projects.
Who it concerns: Madhya Pradesh Public Works Department (PWD), specifically the Buildings and Roads (B&R) wing.
What the auditor found
- Average delay of 424 days in completing road works.
- Only one of 10 National Development Bank (NDB)-funded projects met its deadline.
- ₹ 12.21 crore of the ₹ 26 crore allocated for capacity building under NDB projects remained unutilised (only ₹ 13.79 crore was used).
- ₹ 5.12 crore rendered infructuous in Satna due to premature upgradation of the Amarpatan–Rampur Road.
- ₹ 15.02 crore spent on the Pichore–Dinara Road in Shivpuri, which was left incomplete and abandoned after irregular inclusion of a forest stretch.
- ₹ 7.39 crore excess liability in Ratlam Division due to incorrect bid evaluation in NDB-funded projects.
- ₹ 6.43 crore excess payments made for sub-standard work (compressive strength below specifications) without penalty deductions.
- ₹ 2.87 crore potential savings identified in NDB projects due to non-compliance with itemised costing guidelines.
- Blacklisted contractors were irregularly awarded contracts in multiple instances.
- 59 of 61 tenders above ₹ 5 crore were published in only one newspaper, violating publicity guidelines.
- Recommendations include developing a 10-year Master Plan, updating the MP Works Manual, and implementing digital project monitoring.
Also in the document
- CAG found that despite significant investment, the state’s road network saw minimal growth due to inefficiencies in planning and execution.
- CAG noted that EPC contracts were incentivised with early completion bonuses despite time schedules exceeding prescribed norms, extending undue benefit to contractors.
- CAG reported that funds meant for road development were diverted to state-funded activities like land acquisition and utility shifting.
- CAG observed that consultant recommendations for capacity building were ignored, rendering the expenditure on such efforts fruitless.
- CAG found that As-Built drawings and video recordings were not submitted in two of three EPC contracts, hindering verification and maintenance.
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The original document
Comptroller & Auditor General of India (CAG) — audit reports
Audit report · Ref. Report No. 7 of 2025 · 2025
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