Performance and Compliance Audit (Civil) Report of the Comptroller and Auditor General of India for the period ended March 2022, Government of Andhra Pradesh

This report carries a performance audit of the welfare of building and other construction workers and compliance audits of the Mana Badi Nadu Nedu school infrastructure scheme, the Sampoorna Poshana nutrition scheme and the Andhra Pradesh Industrial Infrastructure Corporation, along with nine compliance paragraphs. The construction workers' audit and the school scheme audit are the ones used on this page.

State: Andhra Pradesh
Audit period: 1 Apr 2017 — 31 Mar 2022
Presented: 6 Mar 2026

Findings

The Board stopped implementing welfare schemes after March 2020 on the Government's instruction, and ₹2,405.14 crore of Board funds was given to the State Government as loans and advances for purposes unrelated to worker welfare — which the audit records as contrary to Supreme Court orders.
“The Board did not implement any welfare schemes after March 2020 as Government had instructed to keep the welfare schemes in abeyance to avoid duplication of benefits since the State Government was implementing similar schemes through other departments. Board funds ₹2,405.14 crore were provided as loans and advances to the State Government on its instructions for other purposes not relevant to the direct welfare of the registered workers in contravention to Supreme Court Orders.”Overview
The share of the Board's yearly income spent on welfare schemes fell from 25.12 per cent in 2017-18 to 0.53 per cent in 2021-22, while administrative expenditure — capped at five per cent — ran between 13 and 63 per cent from 2019-20 to 2021-22.
“Out of the yearly income earned, the amount spent on welfare schemes decreased from 25.12 to 0.53 per cent over the period 2017-18 to 2021-22... Further, the Board failed to limit the administrative expenditure to five per cent of the total expenditure during the years 2019-20 to 2021-22 which ranged from 13 to 63 per cent.”Overview
The share of workers' welfare claims left pending rose from 0.26 per cent to 100 per cent over 2017-22, denying benefits to the workers who needed them.
“The welfare scheme claims of BOC workers were not honoured completely and percentage of claims pending with the Department was on increasing trend from 0.26 per cent to 100 per cent during 2017-22 which resulted in denial of benefit under welfare schemes of the Board to the needy workers.”Overview
The Commissioner and Director of Municipal Administration retained ₹196.79 crore of labour cess instead of transferring it to the Board, and ₹5.11 crore was short-collected in the work bills test-checked; no inspection, online or physical, was carried out on any establishment during 2017-22.
“There was short collection of Labour Cess of ₹5.11 crore in work bills of the test checked Engineering divisions. Further, Commissioner and Director of Municipal Administration (CDMA) had retained Labour Cess collected amounting to ₹196.79 crore instead of transferring the same to the Board... The Department had not conducted any online or physical inspections during the period 2017-22 on establishments.”Overview
Under Mana Badi Nadu Nedu Phase I, 71 of 157 fans tested fell below the agreed air-delivery specification, drinking water systems bought for ₹76.80 lakh were not working in 33 of 108 schools visited, and 1,973 students were sitting on the floor in 32 of those schools despite ₹383.51 crore spent on dual desks.
“71 out of 157 (45.22 per cent) of the fans tested were having CMM (Cubic Meter per Minute) less than the agreed specification of 210... audit observed idling of Green Chalk Boards, non-working of Drinking water system procured after incurring an expenditure of ₹76.80 lakh in 33 (31 per cent) out of 108 test checked schools. Further, despite provision of component furniture for students and staff and incurring an expenditure of ₹383.51 crore for procurement of dual desks, in 32 (30 per cent) out of 108 test checked schools, 1,973 students were sitting on the floor.”Overview

Findings

The Board stopped implementing welfare schemes after March 2020 on the Government's instruction, and ₹2,405.14 crore of Board funds was given to the State Government as loans and advances for purposes unrelated to worker welfare — which the audit records as contrary to Supreme Court orders.

“The Board did not implement any welfare schemes after March 2020 as Government had instructed to keep the welfare schemes in abeyance to avoid duplication of benefits since the State Government was implementing similar schemes through other departments. Board funds ₹2,405.14 crore were provided as loans and advances to the State Government on its instructions for other purposes not relevant to the direct welfare of the registered workers in contravention to Supreme Court Orders.”Overview

The share of the Board's yearly income spent on welfare schemes fell from 25.12 per cent in 2017-18 to 0.53 per cent in 2021-22, while administrative expenditure — capped at five per cent — ran between 13 and 63 per cent from 2019-20 to 2021-22.

“Out of the yearly income earned, the amount spent on welfare schemes decreased from 25.12 to 0.53 per cent over the period 2017-18 to 2021-22... Further, the Board failed to limit the administrative expenditure to five per cent of the total expenditure during the years 2019-20 to 2021-22 which ranged from 13 to 63 per cent.”Overview

The share of workers' welfare claims left pending rose from 0.26 per cent to 100 per cent over 2017-22, denying benefits to the workers who needed them.

“The welfare scheme claims of BOC workers were not honoured completely and percentage of claims pending with the Department was on increasing trend from 0.26 per cent to 100 per cent during 2017-22 which resulted in denial of benefit under welfare schemes of the Board to the needy workers.”Overview

The Commissioner and Director of Municipal Administration retained ₹196.79 crore of labour cess instead of transferring it to the Board, and ₹5.11 crore was short-collected in the work bills test-checked; no inspection, online or physical, was carried out on any establishment during 2017-22.

“There was short collection of Labour Cess of ₹5.11 crore in work bills of the test checked Engineering divisions. Further, Commissioner and Director of Municipal Administration (CDMA) had retained Labour Cess collected amounting to ₹196.79 crore instead of transferring the same to the Board... The Department had not conducted any online or physical inspections during the period 2017-22 on establishments.”Overview

Under Mana Badi Nadu Nedu Phase I, 71 of 157 fans tested fell below the agreed air-delivery specification, drinking water systems bought for ₹76.80 lakh were not working in 33 of 108 schools visited, and 1,973 students were sitting on the floor in 32 of those schools despite ₹383.51 crore spent on dual desks.

“71 out of 157 (45.22 per cent) of the fans tested were having CMM (Cubic Meter per Minute) less than the agreed specification of 210... audit observed idling of Green Chalk Boards, non-working of Drinking water system procured after incurring an expenditure of ₹76.80 lakh in 33 (31 per cent) out of 108 test checked schools. Further, despite provision of component furniture for students and staff and incurring an expenditure of ₹383.51 crore for procurement of dual desks, in 32 (30 per cent) out of 108 test checked schools, 1,973 students were sitting on the floor.”Overview