A draft report by the Comptroller and Auditor General of India (CAG) has found that ₹983.32 crore was spent on projects in 976 villages that were neither directly nor indirectly affected by mining operations in Keonjhar and Sundargarh districts between 2015-16 and 2023-24.
The audit also found that no projects were executed in 488 directly affected villages and 96 indirectly affected villages across the same period.
The PMKKKY framework aims to serve the interests and benefit of people and areas affected by mining operations, but the audit found that funds were diverted for non-eligible purposes, including the construction of a hockey stadium and the procurement of vehicles for police patrolling.
The audit also raised questions about the engagement of project management consultants and the diversion of funds to the state's MGNREGS wage payments.
As of now, Odisha's DMF funds have collected ₹62,242 crore nationally, the highest among all states, with Chhattisgarh a distant second.