CAG flags Rs 250 crore irregularities in Jhelum Tawi Flood Recovery Project

Srinagar, May 2: The World Bank-aided Jhelum Tawi Flood Recovery Project (JTFRP) in Jammu & Kashmir has come under scrutiny, with the Comptroller and Auditor General (CAG) flagging “unfruitful expenditure,” idle infrastructure worth crores, and violations of contractual provisions in its report for the period ending March 2023.
The audit noted that several key assets—including flood rescue boats, oxygen generator plants and search and rescue kits—have remained unused for years, raising concerns over preparedness in a disaster-prone Union Territory still vulnerable to floods like the 2014 deluge.
It further pointed to procurement irregularities, stating that the Project Management Unit (PMU) in August 2017 procured 30 emergency fibre and rubber boats from M/s Gee Pee Reinforced Products Pvt Ltd at inflated rates, despite a clause mandating refund of excess amount if subsequent tenders were finalised at lower rates.
However, the audit noted that when tenders for 28 additional boats were opened in 2018—with the same firm emerging as L1—the Project CEO in August 2025 termed the earlier contract as “expired.” The auditors rejected the claim, observing that the agreement carried no expiry clause and the firm remained liable to refund the excess amount.
It also flagged that over 500 high-value Search and Rescue kits, procured at a cost of Rs 2.35 crore, have been lying unused for more than two years in government stores in Kathua and Anantnag, defeating the objective of strengthening Panchayati Raj Institutions (PRIs) for disaster response.
The report further revealed that out of 530 kits supplied between October 2021 and June 2022, as many as 505 were not distributed, citing a lack of SDRF training. It added that key safety components, such as Karabiners in 230 kits, were found defective and remained unreplaced as of January 2024, while no provision existed in the contract for replenishment of perishable items.
A joint physical inspection of 16 Oxygen Generator Plants (OGPs) pointed to systemic lapses, with the audit noting that no manpower was provided by the Health Department for their operation. At CHC Akhnoor, the plant was handed over only after the withdrawal of contractor staff, leaving it non-functional.
At CHC Hiranagar, defects such as burnt circuit breakers and leaking valves remained unattended for months, while a plant at PHC Zakura was found inaccessible due to the occupation of the premises by security forces. In the absence of any maintenance provision, the audit termed the COVID-era assets a “dead loss.”
The report also flagged the state-owned JKPCC, stating that out of 13 sub-projects worth ₹266 crore, 10 remain incomplete and seven have been abandoned since 2020-21, resulting in unfruitful expenditure of Rs 50.52 crore.
It further noted that bridges at Wagoora, Trenz Sheikhpora and Rohmoo are delayed by over four years. In violation of contract terms, JKPCC sub-contracted two major bridge projects worth ₹55.75 crore up to 61 per cent, exceeding the permissible limit of 25 per cent, while work was also halted over the use of sub-standard E-250 grade steel.
The audit also pulled up the Jammu and Kashmir Medical Supplies Corporation (JKMSCL) for procuring 500 modular monitors at inflated rates, leading to an avoidable expenditure of Rs 31.6 lakh. It added that medical equipment worth Rs 5.39 crore remains idle in hospitals across Poonch, Samba and Baramulla due to a lack of supporting infrastructure.
Besides, the Srinagar Municipal Corporation (SMC) was flagged for spending Rs 102.89 crore on the upgradation of dewatering stations handling mixed discharge. The audit noted that despite World Bank directions, the corporation pumped large quantities of household wastewater into the Jhelum and Dhoodh Ganga, attracting a penalty of Rs 35 crore from the National Green Tribunal. (KNO)