CAG plugs irregularities worth Rs 60 crore in Dehradun Smart City Project

The Comptroller and Auditor General (CAG) of India, in its recent report, had alleged fraud of more than ₹60 crore in various accounts of Dehradun Smart City Project. The CAG report was tabled in the state assembly on Tuesday during the ongoing budget session at Bhararisain.
The CAG Report that covers the period of 2018-23 says, “Numerous ‘smart solutions’ outlined in the Detailed Project Report were dropped during execution or remained non-functional due to inadequate planning and implementation.”

It said a biometric and sensor-based Solid Waste Management (SWM) module developed in March 2022 under e-Governance Solutions of Doon Integrated Command and Control Centre project to monitor real-time waste collection process remained unutilised till February 2025 leading to unfruitful expenditure of ₹4.55 crore. The CAG report claimed that non-operation of e-rickshaws procured at the cost of 0.90 crore under the smart waste vehicles project for almost two years highlights the lack of consistent and proactive management by Dehradun Smart City Limited (DSCL).

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interactive boards, computer lab, projectors, e-content, CCTVs, Biometric attendance as Smart Solutions installed in three Government Schools of Dehradun costing ₹5.91 crore under the smart schools project remained non-functional due to inability of the schools to afford electricity bills for their operation.

The CAG report claimed that projects like Doon Integrated Command and Control Centre and the e-bus initiative also face sustainability concerns for the absence of viable revenue generation models like commercial advertisements, smart Wi-Fi, royalty from e-Governance applications and data monetisation.

“Instances of wasteful expenditure of 2.62 crore on environmental sensors and 3.24 crore on Multi Utility Ducts were also observed. The smart solution like uniform cross section of carriageway and dedicated pedestrian pathway under the Smart Road project were deficiently executed” said the report.

CAG also criticised the payment structure of Dehradun Smart City Limited (DSCL) for the Project Management Consultant (PMC). It said the want of a milestone-based payment module resulted in payments against incomplete works. PMC’s manpower deployment deviated from contract terms resulting in unverified payments and inadmissible payment, undermining financial integrity. It read ,”Irregularities of ₹5.19 crore in PMC payments for remuneration claims and implementation of city investments to innovate, integrate and sustain projects including procurement violations and reimbursement without documentation” were detected.

DSCL was also criticised for significant delay from 19 months to 38 months in completion of the eight projects as well as non-adjustment of advances. “DSCL did not take action for adjustment of advances and impose penalties amounting to 1.41 crore for project delays effectively. In cases where penalties were imposed, these were either insufficient or not fully enforced, resulting in undue benefit to the contractors. DSCL failed to recover an unutilised amount of 19.06 crore from the implementing agency” alleged the CAG report.

CAG report further indicted DSCL for cost escalation of ₹10.34 crore and execution of work costing 2.93 crore without inviting tenders.

Instances of financial mismanagement such as loss of interest of 6.20 crore and non-recovery of interest amounting to 0.81 crore on mobilisation advance were also found by the CAG.

Despite representatives from all the key line departments in state level high powered steering committee and constitution of inter-departmental coordination task force, the issue of lack of coordination among various line departments during implementation of projects could not be resolved. As a result, most of the projects were delayed due to lack of encumbrance free projects sites.

Going by the financial irregularities figures mentioned in the CAG report add up to the tune of more than ₹63 crore rupees. It has covered all 22 projects implemented under smart city projects between 2018 and 23. It’s based on the evaluation of the project records of DSCL implementing agencies PIU, PWD, Uttarakhand Peyjal Sansadhan Vikas evam Nirmaan Nigam and Irrigation Department were examined.