CHENNAI: In the first major audit of the Union govt’s Smart City Mission projects worth ₹10,000 crore, the Comptroller and Auditor-General (CAG) has flagged widespread violations, including diversion of funds, execution of unapproved projects, deviations from approved plans and works outside designated Smart City areas, in Tamil Nadu.
The performance audit of seven of Tamil Nadu’s 11 Smart Cities, including Chennai, for 2015-23 found that 52 projects worth Rs 1,602.20 crore included in the original Smart City Proposals (SCPs) were not implemented despite MINISTRY OF HOUSING AND URBAN AFFAIRS (MoHUA) guidelines allowing deletion only in exigent circumstances with clear justification. At the same time, 44 unplanned projects worth Rs 623.86 crore were taken up.
In Chennai, Rs 66.58 lakh was spent on state government advertisements, Rs 18.44 lakh on consultants for non-Smart City projects and Rs 15.33 crore on shifting/resettlement of families. Tirupur spent funds on renovating a ULB conference hall and buying a 110-inch LED TV, computers, printers and furniture. Though each was to have Rs 200 crore capital, all sampled SPVs were established with just Rs 10 lakh, which the audit said was done to avoid statutory provisions under the Companies Act, 2013.
Corporations also floated limited tenders on behalf of SPVs, violating tender norms and defeating purpose of prudent budgeting, it said. The CAG flagged the functioning of Smart City special purpose vehicles (SPVs). Except Chennai, none had a full-time CEO; municipal commissioners effectively ran the SPVs, creating a potential conflict of interest.