CAG finds major flaws in Assam's PM-KISAN scheme, highlights fund mismanagement

The Comptroller and Auditor General (CAG) of India has found major flaws in the implementation of the Pradhan Mantri Kisan Samman Nidhi (PM-KISAN) scheme in Assam. 

A performance audit by the CAG revealed that 35 per cent of applicants in the state were ineligible, and only 0.24 per cent of the funds given to these ineligible beneficiaries have been recovered. 

This raises serious concerns about the scheme’s management in Assam, where it aims to provide financial support to small and marginal farmers. 

The audit, covering December 2018 to March 2021, found that out of 41,87,023 applications, 10,66,593 (25 per cent) were rejected by the PM-KISAN portal and Public Financial Management System. 

An inquiry by the state government from May-July 2020 declared 11,72,685 (37 per cent) out of 31,20,430 beneficiaries as ineligible. Only 0.24 per cent of the funds given to these ineligible beneficiaries were recovered by October 2021. 

The CAG report, tabled in the state assembly, also found 15,59,286 ineligible names during a verification from May to July 2020. These included non-farmer beneficiaries, government employees, pensioners, and multiple entries. The report noted that 11,31,152 (72.54 per cent) of over 15 lakh ineligible beneficiaries were untraceable. 

Also Read: Himanta Biswa Sarma warns public against fraudulent stock market schemes, police crackdown intensifies

The state government said the figures were dynamic due to ongoing verification. The audit, conducted in 10 districts, found lack of monitoring and adherence to guidelines. Barpeta was also selected due to the high number of ineligible beneficiaries. 

The audit covered 990 records from 22 blocks in 11 districts. It revealed that the state did not maintain a database of landholding farmer families and focused on uploading data quickly rather than ensuring eligibility. Lack of monitoring by supervisory officers affected the scheme’s implementation. 

The audit also found fake registration numbers created by adding zeros to bank account numbers, leading to multiple benefits being credited to the same account. In 16 out of 33 districts, 3,577 such registrations received Rs 3.01 crore. 

Multiple registrations using the same bank account were found for 3,104 beneficiaries in 10 districts, though no benefits were released to them. Funds were also released to beneficiaries with jumbled names or special characters. 

Out of Rs 2.18 crore received for administrative expenses, only Rs 77 lakh utilisation certificate was submitted to the Government of India by October 2021. 

Physical verification of beneficiaries by supervisory officers was not prioritised, violating guidelines and indicating ineffective monitoring. 

The state government accepted the audit observations and stated in February 2022 that 100 per cent re-verification has been conducted since June 2021 under the supervision of revenue officials, deputy commissioners, and the Principal Secretary of the Sixth Schedule areas.