The CAG report found that Rs. 5,754 crore of NRHM funds in Uttar Pradesh were unaccounted for between 2005-2011. Officials, contractors, and politicians allegedly colluded to divert funds meant to improve healthcare for the poor. Primary health centers built with NRHM funds were instead used as storage for potatoes and grain. Four deaths are linked to the scam including two chief medical officers who were murdered. A project manager committed suicide while being investigated for his role in NRHM construction irregularities.

1. Submitted to:- Submitted By:-
Seema chuhan Ajay Budhera
Asst.Prof. 7th sem
IMS KUK Roll. No -10

2. What is CAG
The CAG is a typical file-based government auditing
agency. It stresses on reporting deviations from set
procedures and policies and fails to recognise that the
deviations have resulted in speeding up economic growth.
The Comptroller and Auditor General (CAG) (Hindi:
- ) of India is an authority,
established by the Constitution of India.
Under Chapter V article 149to 151 of the Indian
Constitution, CAG audits all receipts and expenditure of
the Government of India and the state governments,
including those of bodies and authorities substantially
financed by the government. The CAG is also the external
auditor of government-owned companies.

3.  Comptroller and Auditor General of India
 V. Narahari Rao 1948-1954
 A. K. Chanda 1954-1960
 A. K. Roy 1960-1966
 S. Ranganathan 1966-1972
 A. Bakshi 1972-1978
 Gian Prakash 1978-1984
 T. N. Chaturvedi 1984-1990
 C. G. Somiah 1990-1996
 V. K. Shunglu 1996-2002
 V. N. Kaul 2002-2008
 Vinod Rai 2008 present

4.  CAG's Role
 The Comptroller & Auditor General of India plays a key role in
the functioning of the financial committees of Parliament and
the State Legislatures.
 Local Bodies Audit
 UNION AUDIT REPORTS
 The Union Audit Reports of the Comptroller and Auditor
General of India, contain the findings of transaction audit and
performance audit in the areas of:
 Civil Audit
 Audit of Autonomous Bodies
 Defense Services
 Railways
 Receipts of the Government
 Central Commercial

5. What IS 2G ?
 It is a term used in telecommunication sector. It is
a spectrum which support 2G technology. High
bandwidth is required for this purpose. 2G means
second-generation wireless telephone
technology. Second generation 2G cellular
telecom networks were commercially launched on
the GSM standard in Finland in 1991.
 2G introduced data services for mobile, starting
with SMS text messages.

6. What IS 2G Spectrum Scam ?
Acc. To comptroller and auditor general(CAG) –
o 2G licenses issued to private telecom players at
throwaway prices in 2008
o 2G spectrum allocation had caused revenue loss of Rs
1.76 lakh crore
o Rules and procedures flouted while issuing licenses

8. Who is A. Raja?
 Andimuthu Raja has come a long way from being a
lawyer in rural Tamil Nadu.
 The former Communication minister who make the
2G spectrum scam
 Alloted the licence which are given in 2008 at 2001
prices of Rs. 1,658 crore.

9. WHAT ARE THE CHARGES ON
FORMER TELECOM MINISTER A
RAJA?
 CHEAP TELECOM LICENSES-
 Entry fee for spectrum licenses in 2008 pegged at 2001
prices.
 Mobile subscriber base had shot up to 350 million in
2008 from 4 million in 2001.
 NO PROCEDURES FOLLOWED-
 Rules changed after the game had begun
 Cut-off date for applications advanced by a week

10. Contd….
 Licenses issued on a first-come-first-served basis
 No proper auction process followed, no bids invited
 Raja ignored advice of TRAI, Law Ministry, Finance Ministry
 TRAI had recommended auctioning of spectrum at market
rates
 FAVOURITISM, CORPORATES ENCASH PREMIUM-
 Unitech, Swan Telecom got licenses without any prior telecom
experience.
 Swan Telecom given license even though it did not meet
eligibility criteria

11. Contd….
 Swan got license for Rs. 1537 crore, sold 45% stake to
Etisalat for Rs. 4200 crore.
 Unitech Wireless got license for Rs. 1661 crore, sold
67.25% stake for Rs. 6200 crore.
 All nine companies paid DoT only Rs. 10,772 crore for 2G
licences

12. COMMON WEALTH GAMES
SCAM

13.  HOST CITY : New Delhi, India
 NATIONS PARTICIPATING :85 Teams
 EVENTS : 17 disciples
 OPENING CEREMONY :3rd october’2010
 CLOSING CEREMONY :14th oct’2010
 MOTTO : Come Out n Play
 MAIN STADIUM :Jawaharlal Nehru
Stadium.

14. Another feature in the cap of Indian scandal list is COMMON-
WEALTH GAMES LOOT. Yes literally a loot!! It is established
that out of Rs 70,000 crores spent on the games ,only half the
said amount was spent on the sportspersons.
The central vigilance commission , involved in
probing the alleged corruption in various CWG-related projects,
has found discrepancies in tenders – like payment to non-
existence parties and bungling in purchasing of equipments
through tendering and misappropriation of funds .

15. S.KALMADI says a sum of Rs 25,200 crores has been
allocated to hire a time machine for CWG organisers
to have a look to how much toilet papers was bought
during the development of 1896 ATHENS
OLYMPICS.
When asked by Kalmadi about where the
machine was , he pointed to raleigh cycle parked at
Jawahar Lal Nehru Stadium .
*** There were mainly 2 big issues under CWG-
SCAM….listed ahead….

16. Real estate developer EMAAR-MGF may have
to forfeit Rs 183 crores it deposit with the
government of india as a bank guarantee for
CWG village that was built.
EMAAR is being penalised for
structural defects and inadequate amenties
including insufficient power and waste supply
for the apartments that housed the delegates
from 71 countries that participated in the
games .

17. Another controversy dogging the CWG since the
start is the issue of tickets sales . While the general
public was unable to buy the tickets , with all
outlets reporting that all the venues have been
sold out, one witness nearly half the venues empty
for every event.
The fact was the greedy people who were
trying their level best to get maximum profit quick
in every way they can because CWG was a one
time opportunity for them.

18. On 25th April 2009, Suresh Kalmadi was arrested
by CBI under sections 120 B and 420 of the
Indian Penal Code in the Common Wealth
Games for awarding illegal contracts to a Swiss
firm for Timing-Scoring-Result system causing a
loss of Rs. 95 crore to the exchequer. Kalmadi’s
membership of the Indian National Congress
was suspended after being arrested and charged
with corruption.

19. NHRM
SCAM
IN
UP

20. The health scheme scam:
The UPA government launched its flagship National
Rural Health Mission in 2005.
In its recent report, CAG says at least Rs 5,754 crore
of the NRHM funds are not accounted for in Uttar Pradesh from April 1, 2005 to
March 31, 2011. A total of Rs 8,657.35 crore were sent by the Centre to UP
during the period. UP was the highest recipient under the scheme as its health
indicators were poor.
Government officials, contractors, middlemen and politicians are alleged to have
colluded to divert the money sent by the Centre to provide affordable health
services to the poor.
CAG report says apart from the unaccounted funds, Rs 1364.89 crore were not
utilised by the end of March 2010.
The CAG report says selection and award of NRHM works to construction
agencies on nomination basis were in violation of the judgement of the Supreme
Court, Central Vigilance Commission guidelines and NRHM framework.
The CAG says primary health centres were used to store potatoes and eye care
centres were used as grain godowns. For delivering vaccines, the official car of
the Shahjahanpur district magistrate was shown as a delivery vehicle. Nearly 550
health centres that were sanctioned for over Rs 51 crore were never built.

21. The Mayawati government
has been on the back foot ever since the
scam involving siphoning off of huge funds provided
by the Centre to UP came to light. The case was later transferred
to the CBI after the courts intervened.
The NRHM scam has claimed four lives so far. The first death
was that of chief medical officer (CMO) V. Arya, who was
gunned down on October 27, 2010. Another CMO V.P. Singh
was killed on April 2, 2011.

22.  Sunil Verma
 Who: The 55-year-old Verma was from rural Nigohaan area of Lucknow. His
father was a farmer. A class II gazetted officer, he was project manager with
construction and design services, UP Jal Nigam.
 Death: Shot himself at his Lucknow home on Monday, January 23, 2012.
 Case and Role: Was overseeing all the construction related work under NRHM.
Was responsible for upgrade of 134 hospitals under NRHM for Rs 13.4 crore.
The FIR says the work was given to a Ghaziabad-based company on the basis of
forged documents and construction was of inferior quality, causing a loss of Rs
5.46 crore to the exchequer.
 Yogendra Singh Sachan
 Deputy chief medical officer (CMO) of Lucknow Y.S. Sachan was found
hanging from a toilet ceiling inside Lucknow jail on June 22, 2011. He had been
arrested in connection with the murders of his seniors, Vinod Arya and B.P.
Singh, and the for alleged irregularities in National Rural Health Mission. While
UP government claimed he committed suicide, a judicial probe in July 2011
confirmed that he was murdered.

23.  Vinod Arya In October 2010, Vinod Arya, the chief medical officer of the UP
family welfare department in Lucknow, was killed, allegedly by hitmen hired
by Y.S. Sachan.
 B.P. Singh
 On April 2, 2011, B.P. Singh, who had replaced Vinod Arya as CMO, was
murdered. His deputy Y.S. Sachan allegedly had a fallout with him over
NRHM booty and hired assassins who gunned down Singh.
 Ashutosh Asthana
 Who: Administrative officer in Ghaziabad district court treasury.
 Death: Was found dead in October 17, 2009 in Dasna jail where he was
lodged for his role in PF scam of over Rs 23 crore.
 Case and Role: He facilitated fraudulent withdrawal of money from Class
III, IV officials' PF accounts and had named a number of district, high court
judges and a Supreme Court judge in his deposition before a magistrate.