Odisha procured modified Thar SUVs for 17 cr from disaster response fund

Audit flags diversion of SDRF funds for vehicle purchase, illegal royalty deposits and massive pension overpayments, pointing to serious financial control lapses in Odisha

A special audit by the comptroller and auditor general (CAG) has found Odisha’s forest and environment department has sidestepped guidelines of the Centre in expenditure from the State Disaster Response Fund (SDRF), and procured Mahindra Thar jeeps from the fund, customising the vehicles for forest protection.

 

According to the audit findings, reviewed by Business Standard, the procurement and modification of the jeeps cost ₹17 crore in 2024-25.

 

The vehicles were procured for monitoring and regular patrolling in non-motorable roads within forests.

 

The audit found that the special relief commissioner (SRC) had sanctioned ₹28.45 crore in July 2024 for the principal chief conservator of forests (PCCF) (wildlife), ostensibly under the “preparedness and capacity building” component of the 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) by a team of the principal accountant general (accounts and entitlements), Odisha, which comes under the CAG, with special emphasis on vehicle procurement and customisation following allegations.

 

While scrutinising the transactions related to SDRF utilisation, the audit observed the funds available under the “preparedness and capacity building” component should not be used for establishment-related expenditure such as salaries, office expenses, or other routine administrative costs.

 

“The purchase of vehicles for departmental use does not fall within the permissible ambit of expenditure under this window. Of the sanctioned ₹28.45 crore, total procurement plus modification of the Jeeps cost ₹17 crore. What happened to the remaining amount is not known,” stated the letter from the principal accountant general to Chief Secretary Anu Garg.

 

The audit said the SRC was not the competent authority to approve such expenditure. For any expenditure under the “preparedness and capacity building” component, for items permissible, the recommendation of the State Disaster Management Authority (SDMA) is required along with approval from the State Executive Committee (SEC), headed by the chief secretary.

 

The audit also said the sanction order issued by the forest and environment department in September 2024 described the expenditure as “Central Government Contribution to Reserve Fund”, which is 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 ₹338 crore, which could have been re-appropriated, in accordance with applicable financial rules, for the purchase of vehicles, instead of diverting SDRF funds.

 

Royalty of ₹256.81 crore deposited in tehsildars’ accounts

 

Panchayati raj institutions (PRIs) and urban local bodies (ULBs) have been depositing royalty deductions from contractors’ bills in the bank accounts of tehsildars instead of remitting them to the government account via the cyber treasury system, according to the audit. 

The audit found that ₹256.81 crore was deposited in the accounts of 315 tehsildars in the state between 2023 and December 2025. 

 

₹3.25 crore pension paid against ₹25 lakh eligibility 

The audit also uncovered a case of 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 ₹3.25 crore as provisional pension between November 2022 and November 2025, against the eligibility of only ₹25.48 lakh. 

Red flags 

₹28.45 cr sanctioned; ₹17 cr spent on vehicles, ‘what happened to the rest is not known’ 

*  No approval from SDMA/SEC; sanctioning authority exceeded mandate

*  Funds routed via savings account, misclassified in treasury records