A detailed report on the irregularities in Jawaharlal Nehru National Urban Renewal Mission (JNNURM) would be submitted to the government by the probe panel once the inquiry gets over, he said.
"The probe panel is investigating into the alleged irregularities, mismanagement of funds including improper utilisation after a number of complaints received from across the places," Nath told reporters.
He was speaking on the sidelines of the inauguration of skill training centre of Confederation of Indian Industry (CII).
He added that the government had received complaints into the alleged irregularities not only from Maharashtra (Nagpur), but also from Gujarat and Uttar Pradesh.
He said the government had withheld disbursement of JNNURM funds to the tune of Rs 5,000 crore to the respective agencies in the state.
The minister said that the government would soon finalise the second phase of JNNURM, which would be worth Rs 1.60 lakh crore, as against the first phase, which was worth Rs 70,000 crore.
CII president and Godrej group chairman Adi Godrej, advisor to Prime Minister on Skill Development S Ramadorai, Director General CII Chandrajit Banerjee, Chairman of Western Region CII Pradeep Bhargava and local MLA Deepak Saxsena were present on the occasion.