New Delhi, July 28 (KNN) Comptroller and Auditor General (CAG) in a report on compliance audit, tabled in Parliament, noted that funds of 481.75 crores were found lying idle in banks, which was supposed to be directed towards the Prime Minister’s Employment Guarantee program (PMEGP).

According to the CAG report, during the year 2015.16, of the designated amount, only 85.81 crores were released by the MSME Ministry by February 16, 2016. Following this, the Ministry received another 318.46 crores between March 22 and March 31, 2016.

The report observed that 481.75 crores was found parked in the bank accounts of the headquarters and field offices that are yet to be utilized.

The Ministry of Micro, Small and Medium Enterprises (MSME) last year clarified that the late receipt of approval from the Finance Ministry is the main reason for the delayed release of funds.

The report also observed that funds of 276 crore to 507 crore are also lying with the Khadi and Village Industries Corp (KVIC) headquarters in flexi term deposits since July 2016 to October 2016 that is yet to be utilized.

The CAG report further noted that the structural gaps and lack of coordination between operating units with regard to channelizing of funds needs to be addressed. (KNN/ DA)