Compliance Audit — Karnataka: Sports Authority, ESIS & Autonomous Bodies (2019–24)

CAG Compliance Audit of Karnataka for the period ending March 2024 (R1/2026, 155 pages) covers the Department of Youth Empowerment and Sports (DYES) and nine Autonomous Bodies under the State Legislature. A SSCA on the Karnataka Sports Policy 2018 found the Sports Authority of Karnataka (SAK) released ₹7.94 crore beyond its annual financial ceiling of ₹25 lakh. SAK and GETHNAA failed to submit Utilisation Certificates for ₹94.40 crore of grants-in-aid received during 2019–24. Cash award distribution records worth ₹8.46 crore were not produced to audit. District Stadium Management Committees (DSMCs) held ₹30.79 crore in bank accounts unutilised. Ineligible sportsperson incentives of ₹4.54 crore were paid under various policy heads.

State: Karnataka
Audit period: 1 Apr 2019 — 31 Mar 2024
Presented: 26 Mar 2026

Findings

The Karnataka Sports Authority operated beyond its delegated financial powers: ₹7.94 crore released by the Chairman exceeded the ₹25 lakh annual GIA ceiling — including a single ₹1 crore grant to a film cricket association — without Cabinet approval, in violation of SAK's GIA Code and Sports Policy 2018.
“the expenditure of ₹7.94 crore released by the Chairman was beyond the annual financial ceiling of ₹25 lakh”SSCA Karnataka Sports Policy · p. 41
Grants totalling ₹94.40 crore disbursed to SAK and GETHNAA over five years without any Utilisation Certificates — a systemic accountability failure enabling unverified expenditure across the Karnataka sports ecosystem.
“SAK and GETHNAA had received grant-in-aid amounting to ₹83.57 crore and ₹15.85 crore respectively during 2019-20 to 2023-24 for the activities of the SAK / GETHNAA”Non-submission of Utilisation Certificates · p. 43
Four District Stadium Management Committees held ₹30.79 crore in bank accounts without deploying the funds for stadium maintenance — earning interest (₹6.49 crore noted) while physical infrastructure deteriorated.
“Four out of eight sampled DSMCs earned revenue by collection of user fees etc. and were lying unutilised in the bank accounts maintained by DSMC. No maintenance activity of the stadium was undertaken during this period despite earning huge revenue”DSMC revenue utilisation · p. 42
SAK released ₹5.21 crore in grants to Karnataka Olympic Association (KOA) and ₹1 crore for Mini Olympics events that were not conforming to the GIA Code or Sports Policy 2018 criteria.
“SAK released during 2019-20 to 2023-24, ₹5.21 crore as grants to KOA”SSCA Karnataka Sports Policy · p. 41
₹7.94 croreGrants released by SAK Chairman beyond annual ceiling
Annual ceiling per GIA Code was ₹25 lakh; releases totalling ₹7.94 crore (including ₹1 crore to Kannada Film Cricket Association) violated limits
“the Chairman was beyond the annual financial ceiling of ₹25 lakh from the SAK Discretionary... totalling ₹7.94 crore (Appendix 2.3), which included release of funds to the extent of rupees one crore to Kannada Film Cricket Association exceeding both”SSCA Karnataka Sports Policy · p. 41
₹94.40 croreUtilisation Certificates not submitted (SAK + GETHNAA)
SAK: ₹83.57 crore; GETHNAA: ₹10.83 crore — neither entity submitted audited expenditure statements for 2019–24
“SAK and GETHNAA had received grant-in-aid amounting to ₹83.57 crore and ₹15.85 crore respectively during 2019-20 to 2023-24... no UCs along with Audited expenditure statement were submitted by SAK and GETHNAA for the amounts ₹83.57 crore and ₹10.83 crore respectively”SSCA Karnataka Sports Policy · p. 43
₹8.46 croreCash awards/scholarships — records not produced
₹10.98 crore (DYES) + ₹0.49 crore (GETHNAA) distributed; beneficiary records for ₹8.46 crore not furnished to audit
“DYES and GETHNAA had distributed cash awards and scholarships to school students and sportspersons for the years 2019-20 to 2023-24 amounting to ₹10.98 crore and ₹0.49 crore respectively. However, the records of the details... of ₹8.46 crore”SSCA Karnataka Sports Policy · p. 44
₹30.79 croreDSMC stadium revenues lying unutilised in bank accounts
The Ballari, Bengaluru Urban, Dharwad and Vijayapura DSMCs earned user fees but undertook no maintenance despite revenue accumulation
“Four out of eight sampled DSMCs earned revenue by collection of user fees etc. and were lying unutilised in the bank accounts maintained by DSMC. No maintenance activity of the stadium was undertaken during this period despite earning huge revenue”SSCA Karnataka Sports Policy · p. 42
₹4.54 croreIneligible cash incentives paid to sportspersons
Incentives paid under various heads not conforming to Karnataka Sports Policy 2018 criteria
“incentives to sports people to the extent of ₹4.54 crore under various”SSCA Karnataka Sports Policy · p. 45

Recommendations

Mandate electronic Utilisation Certificate submission with audit-trail timestamps before any subsequent grant release to SAK, GETHNAA or other autonomous sports bodies.
Enforce GIA Code financial delegation strictly: release exceeding the annual ceiling should require prior Cabinet/Government sanction with public disclosure.
Require DSMCs to maintain stadium infrastructure through a dedicated maintenance reserve funded by user fees, not left idle in bank accounts.
Conduct a forensic reconciliation of the ₹8.46 crore in undocumented cash award payments to verify beneficiary eligibility under Karnataka Sports Policy 2018.

Compliance Audit — Karnataka: Sports Authority, ESIS & Autonomous Bodies (2019–24)

Findings

The Karnataka Sports Authority operated beyond its delegated financial powers: ₹7.94 crore released by the Chairman exceeded the ₹25 lakh annual GIA ceiling — including a single ₹1 crore grant to a film cricket association — without Cabinet approval, in violation of SAK's GIA Code and Sports Policy 2018.

“the expenditure of ₹7.94 crore released by the Chairman was beyond the annual financial ceiling of ₹25 lakh”SSCA Karnataka Sports Policy · p. 41

Grants totalling ₹94.40 crore disbursed to SAK and GETHNAA over five years without any Utilisation Certificates — a systemic accountability failure enabling unverified expenditure across the Karnataka sports ecosystem.

“SAK and GETHNAA had received grant-in-aid amounting to ₹83.57 crore and ₹15.85 crore respectively during 2019-20 to 2023-24 for the activities of the SAK / GETHNAA”Non-submission of Utilisation Certificates · p. 43

Four District Stadium Management Committees held ₹30.79 crore in bank accounts without deploying the funds for stadium maintenance — earning interest (₹6.49 crore noted) while physical infrastructure deteriorated.

“Four out of eight sampled DSMCs earned revenue by collection of user fees etc. and were lying unutilised in the bank accounts maintained by DSMC. No maintenance activity of the stadium was undertaken during this period despite earning huge revenue”DSMC revenue utilisation · p. 42

SAK released ₹5.21 crore in grants to Karnataka Olympic Association (KOA) and ₹1 crore for Mini Olympics events that were not conforming to the GIA Code or Sports Policy 2018 criteria.

“SAK released during 2019-20 to 2023-24, ₹5.21 crore as grants to KOA”SSCA Karnataka Sports Policy · p. 41

₹7.94 croreGrants released by SAK Chairman beyond annual ceiling

Annual ceiling per GIA Code was ₹25 lakh; releases totalling ₹7.94 crore (including ₹1 crore to Kannada Film Cricket Association) violated limits

“the Chairman was beyond the annual financial ceiling of ₹25 lakh from the SAK Discretionary... totalling ₹7.94 crore (Appendix 2.3), which included release of funds to the extent of rupees one crore to Kannada Film Cricket Association exceeding both”SSCA Karnataka Sports Policy · p. 41

₹94.40 croreUtilisation Certificates not submitted (SAK + GETHNAA)

SAK: ₹83.57 crore; GETHNAA: ₹10.83 crore — neither entity submitted audited expenditure statements for 2019–24

“SAK and GETHNAA had received grant-in-aid amounting to ₹83.57 crore and ₹15.85 crore respectively during 2019-20 to 2023-24... no UCs along with Audited expenditure statement were submitted by SAK and GETHNAA for the amounts ₹83.57 crore and ₹10.83 crore respectively”SSCA Karnataka Sports Policy · p. 43

₹8.46 croreCash awards/scholarships — records not produced

₹10.98 crore (DYES) + ₹0.49 crore (GETHNAA) distributed; beneficiary records for ₹8.46 crore not furnished to audit

“DYES and GETHNAA had distributed cash awards and scholarships to school students and sportspersons for the years 2019-20 to 2023-24 amounting to ₹10.98 crore and ₹0.49 crore respectively. However, the records of the details... of ₹8.46 crore”SSCA Karnataka Sports Policy · p. 44

₹30.79 croreDSMC stadium revenues lying unutilised in bank accounts

The Ballari, Bengaluru Urban, Dharwad and Vijayapura DSMCs earned user fees but undertook no maintenance despite revenue accumulation

“Four out of eight sampled DSMCs earned revenue by collection of user fees etc. and were lying unutilised in the bank accounts maintained by DSMC. No maintenance activity of the stadium was undertaken during this period despite earning huge revenue”SSCA Karnataka Sports Policy · p. 42

₹4.54 croreIneligible cash incentives paid to sportspersons

Incentives paid under various heads not conforming to Karnataka Sports Policy 2018 criteria

“incentives to sports people to the extent of ₹4.54 crore under various”SSCA Karnataka Sports Policy · p. 45

Recommendations

Mandate electronic Utilisation Certificate submission with audit-trail timestamps before any subsequent grant release to SAK, GETHNAA or other autonomous sports bodies.

Enforce GIA Code financial delegation strictly: release exceeding the annual ceiling should require prior Cabinet/Government sanction with public disclosure.

Require DSMCs to maintain stadium infrastructure through a dedicated maintenance reserve funded by user fees, not left idle in bank accounts.

Conduct a forensic reconciliation of the ₹8.46 crore in undocumented cash award payments to verify beneficiary eligibility under Karnataka Sports Policy 2018.