Comprehensive CAG audit for all district mineral foundations

The Comptroller and Auditor General of India (CAG) will conduct a comprehensive audit of district mineral foundations (DMFs) across the country. This follows allegations of discrepancies in utilisation of their funds, which are meant to be spent on development and welfare programmes in mining-affected areas, officials privy to the development said.

DMFs are statutory authorities, operating like a trust, which a state government sets up in districts affected by mining. They are funded through the contribution from miners.

Multiple Members of Parliament have flagged concerns about DMF funds being used for non-developmental activities, an official told ET. The concerns were flagged during the parliamentary consultative committee meeting for the ministries of mines and coal in November 2022.

Parliamentarians have also sought changing the composition of DMF committees that oversee the utilisation of these funds.

"The request for an audit of the DMF has been forwarded to the CAG," a senior mines ministry official told ET.

According to the Ministry of Mines, DMFs have been set up in 626 districts across 23 states.