Politics & Governance

CAG Audit Flags Severe Irregularities in Cyclone Amphan Relief Funds

31 July 2026UPSCSSC

In Brief

Identifies major anomalies and record fudging in West Bengal's post-Cyclone Amphan compensation disbursement to ineligible beneficiaries.

A compliance report by the Comptroller and Auditor General of India (CAG) presented in the state assembly revealed widespread irregularities, altered documentation, and systemic flaws in the disbursement of financial relief following Very Severe Cyclonic Storm Amphan, which devastated Eastern India in May 2020.

Cyclone Amphan was a super cyclonic storm that caused widespread destruction across West Bengal and Odisha. Following the disaster, central and state relief allocations were sanctioned under the National Disaster Response Fund (NDRF) and State Disaster Response Fund (SDRF) to compensate affected citizens for damaged housing, lost livestock, and ruined agricultural fields.

The audit discovered multiple instances where financial grants were awarded to individuals with undamaged homes or ineligible claims, while thousands of genuine disaster victims were omitted. The report also pointed out that rejected applications were subsequently approved without administrative verification, indicating significant financial leakages and monitoring lapses.

The findings highlight the essential role of independent auditing in maintaining financial accountability during emergency disaster recovery programs. For exams, Prelims covers the constitutional mandate of the CAG under Articles 148–151 and the functioning of NDRF/SDRF under the Disaster Management Act, 2005, while Mains examines disaster management ethics and public expenditure governance.

UPSC Study NotesHIGHGS2 — Constitutional Bodies & Governance | GS3 — Disaster Management

GS2 — Constitutional Bodies & Governance | GS3 — Disaster Management

📌 Exam Angle

Prelims can frame MCQs testing CAG's constitutional mandate (Articles 148–151) and statutory funding mechanisms under the Disaster Management Act, 2005. Mains answers can utilize this case study to illustrate leakages in emergency public spending, disaster relief ethics, and accountability gaps.

⚠️ Key Concerns

Widespread inclusion and exclusion errors compromise target efficiency in post-disaster financial relief operations. Systemic record-fudging and administrative oversight lapses expose critical vulnerabilities in state-level emergency expenditure monitoring and social auditing mechanisms.

💡 Why It Matters

This issue highlights the indispensable role of ex-post auditing by the CAG in enforcing fiscal propriety during climate emergencies. It emphasizes the urgent necessity of transitioning emergency relief disbursements to transparent, geo-tagged Direct Benefit Transfer (DBT) systems.

🔑 Must Remember

• CAG derives audit powers over public accounts from Article 149 of the Indian Constitution. • SDRF is constituted under Section 48 of the Disaster Management Act, 2005, sharing a 75:25 central-state ratio. • NDRF operates under Section 46 of the Disaster Management Act, supplementing SDRF during severe calamities.

📝 Key Terms

Comptroller and Auditor GeneralArticle 148-151Disaster Management Act 2005NDRFSDRFDirect Benefit TransferFinancial ProprietyInclusion-Exclusion Errors

CAG Audit Flags Severe Irregularities in Cyclone Amphan Relief Funds

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