In a blatant violation of Government of India guidelines, the Forest, Environment and Climate Change department of the Odisha government procured Mahindra Thar vehicles and customised them for forest protection by diverting the State Disaster Response Fund (SDRF), finds a special audit.
As per the audit findings (reviewed by Business Standard), the procurement and modification of the Jeeps cost Rs 17 crore in the 2024–25 fiscal year. The vehicles were procured for monitoring and regular patrolling on non-motorable roads inside forests.
The audit found that the Special Relief Commissioner (SRC) sanctioned Rs 28.45 crore in July 2024 in favour of the Principal Chief Conservator of Forests (PCCF), Wildlife, ostensibly under the “preparedness and capacity building” component of SDRF. “The funds were meant for capacity building but were used to purchase Thar jeeps for forest protection.”
In December last year, the state government had ordered a special audit of the office of the PCCF (wildlife) through a team of the Principal Accountant General (Accounts and Entitlements), Odisha, with special emphasis on the entire process of procurement and customisation of vehicles.
While scrutinising transactions related to SDRF utilisation, the audit observed that funds available under the “preparedness and capacity building” window should not be used for establishment-related expenditures, including salaries, office expenses, or other routine administrative costs incurred by disaster management authorities or any other entities, as per SDRF guidelines.
“The purchase of vehicles for departmental use does not fall within the permissible ambit of expenditure under this window. Of the sanctioned Rs 28.45 crore, total procurement plus modification of the Jeeps cost Rs 17 crore. What happened to the remaining amount is not known,” stated the letter from the Principal Accountant General to Chief Secretary Anu Garg.
Moreover, the audit said the SRC is not the competent authority to accord approval for such expenditure. Any expenditure under the “preparedness and capacity building” component, for items otherwise permissible, is required to be undertaken only upon recommendation of the State Disaster Management Authority (SDMA) and with the approval of the State Executive Committee (SEC) headed by the chief secretary, as prescribed under the applicable guidelines.
The audit also observed that the sanction order issued by the Forest and Environment department in September 2024 describes the expenditure as “Central Government Contribution to Reserve Fund”, which is factually incorrect and misleading.
“The bill was similarly presented before the treasury under the same head, which resulted in misclassification and distortion of facts. The amount has reportedly been transferred to the HDFC savings bank account of the PCCF (wildlife), which raises serious concerns about procedural propriety and compliance. The manner in which the SDRF funds were credited to a departmental savings bank account is not as per extant rules,” it stated.
During the same period, the audit found, the Forest Department surrendered Rs 338 crore, which could have been re-appropriated, in accordance with applicable financial rules, for the purchase of vehicles instead of diverting SDRF funds.
Rs 256.81 crore royalty deposited in tehsildars’ accounts
The audit also flagged that Panchayati Raj Institutions (PRIs) and Urban Local Bodies (ULBs) have been depositing royalty deductions from contractors’ bills into the bank accounts of tehsildars, instead of remitting them to the government account via the cyber treasury system.
During scrutiny of transactions, the audit found that a total of Rs 256.81 crore was deposited into the accounts of 315 tehsildars across the state between 2023 and December 2025. The audit termed this practice “illegal” and amounting to “embezzlement of government money”. It recommended immediate freezing of these bank accounts and a thorough investigation to determine the duration of the practice and any potential misuse of funds.
The Principal Accountant General also recommended instructing the HoDs of the administrative departments of PRIs and ULBs to ensure that all government dues, including royalties, are deposited directly into the government account and that punitive action is taken against violators for non-adherence.
Rs 3.25 crore pension paid against Rs 25 lakh eligibility
In a separate but equally serious finding, the audit uncovered a case of massive overpayment in provisional pension in the office of the deputy commissioner, state excise (north division), Sambalpur. A retired assistant sub-inspector, Achyuta Dehury, was paid Rs 3.25 crore as provisional pension between November 2022 and November 2025, against an actual eligibility of only Rs 25.48 lakh.
This apart, the drawing and disbursing officer (DDO) sanctioned Rs 67.79 lakh as arrear salary to the same individual without any valid sanction or pay fixation order. “The anomaly is stark given that the employee retired in January 2014, but provisional pension was sanctioned only in November 2022, after an eight-year gap,” the letter stated.
The audit found that multiple pension payments were made within single months, backed by multiple sanction orders to the same employee, none of which was flagged by the treasury office in Sambalpur before passing the payments.
With nearly 15,000 retirees currently drawing provisional pensions, the audit warned of systemic risks, highlighting that such payments often continue beyond the stipulated six-month period without submission of final pension papers. It recommended a comprehensive verification by the Finance Department to detect similar irregularities.
“These cases indicate a serious breakdown of internal controls, supervisory failures and system weaknesses in financial management, which require urgent intervention at the highest level,” the Principal Accountant General wrote to the chief secretary, requesting exemplary action against the officials concerned.
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