Belagavi: A special audit of the Belagavi City Corporation (BCC) for the financial years 2018–19 to 2020–21 has uncovered major financial irregularities, raising serious concerns about governance and accountability within the civic body.
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The audit report has flagged 24 objections involving expenditures of ₹75.1 crore. Of this, ₹7 crore across 10 cases has been identified as immediately recoverable. When arrears from previous years are included, the total pending recovery amount rises sharply to ₹80.4 crore.
According to the findings by the state audit and accounts department’s Belagavi regional office, the irregularities point to systemic lapses rather than isolated incidents. Key issues highlighted include lack of proper documentation, violations of tender procedures, discrepancies in work estimates, and failure to collect statutory fees such as taxes, cess, and royalty.
The audit has identified irregularities across several departments, including road works, street lighting, drainage systems, underground drainage (UGD), trade licences, taxation, and building permits. It also noted inconsistencies in measurement records, billing, and payments, indicating weak internal controls.
In multiple cases, payments were made without supporting documents, and works were executed bypassing due procedures. Auditors also found mismatches between the quantity of work completed and payments released, along with instances of undue benefits extended to ineligible contractors.
Some expenditures have been classified as “unproductive,” indicating lack of proper approvals or measurable outcomes. High-value objections were recorded in sewerage and sewage treatment plant (STP) works in Hanuman Nagar, as well as in deposit works and infrastructure projects like street lighting and asphalt repairs.

The report further flags issues such as single-tender approvals, eligibility disputes, and discrepancies between work certificates and payments, pointing to inadequate monitoring mechanisms.
Overall, cumulative audit objections, including those from previous years, stand at a staggering ₹696.3 crore, reflecting a long-standing pattern of financial mismanagement.
Responding to the findings, BCC Commissioner Karthik K stated that the corporation will submit clarifications to the audit department. “We will respond to the objections raised, and we expect the number of objections to reduce after our clarification,” he said.
The audit has intensified concerns over transparency and the use of public funds, prompting calls for stricter oversight and accountability within the corporation.
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