Mining, Liquor Contractors Deceive Madhya Pradesh Government Of ₹1000 Crore

Mining, Liquor Contractors Deceive Madhya Pradesh Government Of ₹1000 Crore

Illegal mining continued for 3 yrs without permission

Staff ReporterUpdated: Friday, August 01, 2025, 11:28 AM IST
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Bhopal (Madhya Pradesh): The state government has incurred a loss of ₹1,000 crore because of the mining and liquor contractors. The CAG report for 2021-22 brought this fact to light on Thursday.

According to the CAG report, 45 contractors, who acquired leases for mining, dug out more grit, red sand, marble, sand and dolomite than prescribed by the government.

The mining department could neither recover royalty nor imposed a penalty on the defaulters. As a result, the government incurred a loss of ₹630 crore.

Irregularity of ₹93 crore in PWD

CAG pointed out rip-off of ₹93 crore in PWD. According to the report, the officers paid more than the contract amount without permission. The office of the chief engineer spent ₹30 crore without any reason.

The contractors were paid an additional sum of ₹3.68 crore. Extra payments were made for recovery of observation fee, non-payment of amount to the parent department and changing design.

Forest department suffers loss of ₹87 crore

CAG reports also referred to a loss of ₹87 crore for not harvesting of pro-duce on time, encroachment, less production of bamboo, and non-recovery of lease rent and dividend.

Ten leaseholders were digging those mines for which there was no permission.

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