The Comptroller and Auditor General of India flagged deviations in implementation of Smart Cities Mission projects in Chennai after a performance audit covering April 2016 to March 2024. The audit, tabled in the Tamil Nadu Legislative Assembly on September eight, found that several projects were dropped, unplanned work was undertaken and funds were spent outside the designated Smart City area. The audit report examined project selection, execution and financial compliance across municipal and state implementing agencies.

Of the 48 projects planned for Chennai with an approved cost of Rs 13.66 billion (bn), eight projects worth Rs 2,790.3 million (mn) were not implemented. The audit also identified that 13 projects involving an expenditure of Rs 763.2 million (mn) were carried out beyond the approved Area Based Development zone. Shortcomings were observed in documentation of project scope and in adherence to procurement and monitoring protocols.

The CAG report noted instances where project deliverables were either modified without formal approval or where parallel works were executed outside the Smart City plan, leading to potential duplication and inefficiencies. It indicated lapses in periodic review and performance measurement that undermined planned outcomes and value for money. The audit assessed reasons for cancellations and deviations, attributing many to inadequate planning and weak coordination among implementing agencies.

The report recommended strengthening project appraisal and zoning controls, enhancing internal controls and instituting stricter monitoring and reporting mechanisms by municipal authorities and the state government. It urged timely reconciliation of accounts and recovery or reallocation of funds where projects were not completed as approved. The findings are expected to inform legislative oversight and corrective action by state authorities promptly.