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CAG flags ₹1,662 cr DMF spend outside norms, mining-affected areas
GENERAL
29 Sept 2026

CAG flags ₹1,662 cr DMF spend outside norms, mining-affected areas

A CAG audit found that over ₹1,662 crore of District Mineral Foundation money, meant for mining-hit communities, went to areas not affected by mining. So if you run or fund mining-linked projects, spending norms now face sharper scrutiny. Of that, ₹983.32 crore was spent in villages untouched by mining and ₹679.14 crore was approved outside the permitted PMKKKY framework. Keep your project records ready.

Key Statutory Highlights

  • A CAG audit flagged over ₹1,662 crore of District Mineral Foundation spending that went to areas not affected by mining.
  • ₹983.32 crore of that money was spent in villages that were not affected by mining.
  • ₹679.14 crore was sanctioned for projects outside the permissible PMKKKY framework.
Actionable Advice for Taxpayers / Founders:If you handle District Mineral Foundation or mining-linked project funds, review your sanctioned and spent amounts against the approved PMKKKY framework, and get a CA to check the paperwork so you can explain each project's location and purpose if asked.
Statutory Disclaimer: TaxQue Shorts are AI-assisted editorial briefs for compliance awareness. This brief has not passed every source check; confirm the original notification before acting. This does not constitute formal legal or CA counsel.
TaxQue News Desk
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