CAG flags Rs 3,541 crore excess spending in Maharashtra govt’s Ladki Bahin scheme

The Comptroller and Auditor General (CAG) has flagged Rs 3,541.16 crore in excess expenditure, parking of thousands of crores in deposit accounts, and financial management deficiencies in the implementation of the Maharashtra government’s flagship Ladki Bahin scheme.

The CAG State Finances Audit Report 2024-25, tabled in the state legislature on Friday, noted that the Women and Child Development Department did not provide any specific justification for the substantial excess expenditure.

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The report stated that the Women and Child Development Department spent Rs 33,237.24 crore on the scheme against the authorised budget of Rs 29,693.09 crore, resulting in an excess expenditure of Rs 3,541.16 crore.

Audit flags fund parking

The report said a total grant of Rs 29,693.09 crore was made available for the scheme, including Rs 26,200 crore through supplementary provisions and Rs 3,490.75 crore re-appropriated from the Lek Ladki Yojana.

The CAG said audit scrutiny revealed that Rs 15,586 crore drawn between January and March 2025 was transferred to Virtual Personal Deposit Accounts (VPDAs).

"This large-scale withdrawal indicates that the funds were not required for immediate use and were drawn from the treasury without actual expenditure needs," the report said.

Describing the practice as a serious financial irregularity, the CAG said the drawal and parking of funds in VPDAs without immediate requirement was "contrary to principles of budgetary discipline and financial propriety" and undermined legislative control over public finances.

Budget planning questioned

The audit further observed that the scheme's implementation was marked by "significant deficiencies in budget estimation, expenditure control, and financial management".

It also noted that expenditure on women's welfare increased sharply from Rs 261.78 crore in the previous year to more than Rs 33,500 crore, reflecting "a significant shift toward welfare-oriented transfers rather than capital asset formation".

The Mukhyamantri Majhi Ladki Bahin Yojana, approved on June 28, 2024, aims to ensure women’s economic independence. Under the scheme, eligible women aged between 21 and 65 years receive Rs 1,500 per month through Direct Benefit Transfer.

The CAG recommended that for large DBT schemes such as the Ladki Bahin Yojana, the department should ensure a realistic assessment of beneficiary coverage and fund requirements during budget formulation to avoid unnecessary supplementary demands or unauthorised excess expenditure.

It also advised the government against parking funds in VPDAs or similar accounts, saying fund withdrawals should be strictly linked to actual and immediate expenditure needs.

Grounded chopper costs crores

Meanwhile, the CAG has also slammed the Maharashtra government for the delay in appointing a maintenance agency for a Rs 82.78 crore helicopter bought for anti Naxalite operations, leaving it grounded for 17 months and causing an avoidable expense of Rs 2.07 crore.

In its Compliance Audit Report for the year 2024, tabled in the state legislative assembly on July 10, the CAG said the Directorate of Aviation, Government of Maharashtra, took nearly 10 months to appoint a Maintenance, Repair and Overhaul (MRO) agency after the helicopter was delivered.

"The delay of about ten months in finalising the MRO agency resulted in the helicopter not receiving the mandatory daily checks and engine ground runs required to maintain its airworthiness," the report said.

Six ‘ghost hostels’ exposed

The CAG has also unmasked six “ghost hostels” in Maharashtra that quietly received Rs 1.62 crore in government funds over four years without housing a single student.

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The CAG's compliance audit report 2024 highlighted serious deficiencies in infrastructure, safety, hygiene and financial management in government-run and aided hostels meant for students from backward and economically weaker sections.

“The Department of Social Justice and Special Assistance disbursed Rs 1.62 crore to non-functional entities over four years,” the CAG report stated, describing the six institutions as “ghost hostels” and pointing to a blatant misappropriation of public funds.

As per the report, the CAG team found dusty beds with no occupants at a hostel, built for 24 students in Jafrabad (Jalna), and had uncovered similar “ghost” hostels at four in Jalna, and one each in Buldhana and Latur.

(With agency inputs)