"If probed properly, the loot in the department would be no less than that in the health department," Urban Development Minister Azam Khan said while presenting budget in the Assembly.
There had been useless expenditure by the cash-strapped nagar nigams and nagar palikas (municipal bodies) by employing large number of people on contract, despite availability of regular staff over there.
Citing irregularities in the Kanshi Ram Avas Yojna of the BSP government, Khan claimed the houses meant for poor were alloted to well-off people.
The SP government was probing the matter and has initiated action against those not eligible, he said.
Twenty-five officials, including those in senior ranks, were suspended by the present government following irregularities in the Jal Nigam.
Khan said the government is mulling 'Aasra' scheme with an investment of Rs 100 crore to provide shelter to those forced to live on streets, apart from giving battery operated rickshaws to registered and licence-holding pullers.
Promising all out efforts to redress the water problem in Bundelkhand region, Azam claimed it was due to the efforts of earlier SP government that the present drought-like situation in the region could be dealt with.
Later the House passed the Rs 3,433.55 crore budget by a voice-vote.