Karnataka civic bodies flout software norms, face financial lapses in Nagarothana scheme

According to the committee, the corporations were required to undertake development works in accordance with the scheme’s guidelines.
Chairman C Puttarangashetty.
Chairman C Puttarangashetty.Photo | Wikipedia
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BENGALURU: Several municipal corporations in Karnataka have failed to properly use the software to implement the Chief Minister’s Urban Development Scheme (CM’s Nagarothana Yojana) Phase III, resulting in financial and procedural lapses, the Karnataka Legislature’s Local Bodies Committee has said. The committee’s report (2025–26) was tabled in the Legislative Assembly on Monday by its chairman C Puttarangashetty.

After examining earlier reports of the Comptroller and Auditor General (CAG), the committee directed the municipal corporations to rectify the shortcomings and ensure the scheme is implemented within the stipulated timeframe.

According to the committee, the corporations were required to undertake development works in accordance with the scheme’s guidelines. The respective deputy commissioners were responsible for the release of funds and processing of payments, while the monitoring was to be done through the district urban development cells (DUDCs).

However, the CAG had pointed out several deficiencies, including the failure to maintain proper records of the works. In some municipal corporations, even the basic documentation required for accounting and monitoring was not maintained.

The committee said it had completed the examination of the officials concerned. Even as funds had already been sanctioned under the scheme, the Urban Development Department should introduce appropriate software within the next five to seven months and ensure that the scheme is implemented strictly according to the rules, it recommended.

The committee also stressed the need for greater computerisation of financial transactions. “Karnataka is a state that provides software solutions to the world. It is therefore unacceptable that government schemes should suffer lapses because of the absence of suitable software or failure to integrate available technology,” the report observed.

Drawing a comparison with private businesses, the committee said departments should maintain accounting software similar to the systems used by commercial establishments. Details of funds received, expenditure incurred and payments made should be systematically entered and computerised, it recommended.

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