An audit inquiry has reportedly uncovered irregularities of up to ₹600 crore in funds meant for women-focused programmes in Tamil Nadu. The findings have triggered concern in government circles, even as allegations surface that efforts are under way to blunt the investigation by arranging a separate audit team before the current review is completed.
The programmes are implemented through the Tamil Nadu Corporation for Development of Women, covering initiatives under the State Rural Livelihood Mission, the Urban Livelihood Mission and the Rural Transformation Project. The government is said to allocate roughly ₹1,000 crore to ₹1,800 crore annually for various self-help group (SHG) activities, in addition to bank-linked borrowing.
According to audit officials quoted in the report, central funds were not spent as intended and irregularities were found across district project offices, block offices and panchayat offices. They also alleged that most staff in the programme are on contract, limiting vigilance scrutiny, and that large bank transfers linked to some individuals were not flagged by the Income Tax department.
The report says complaints had reached the women’s development agency, and the then managing director, IAS officer Shajeevathana, identified signs of corruption while reviewing petitions. Subsequently, an audit team led by IAS officer Venkatesan was formed to examine fund utilisation across 388 blocks and 12,560 panchayats, with the order issued on March 5 and work commencing on March 9.
The team reportedly collected ledgers, receipts and supporting documents to the Chennai head office, conducted field visits, and checked bank transactions to confirm misappropriation. The alleged methods include loans meant for the poor being issued in relatives’ names, payments claimed for trainings that were not conducted, fake bills for machinery and drones that were never purchased, inflated printing and photocopying expenses, and manipulated attendance records. The report also mentions that misappropriation of ₹10.5 crore was detected in Mayiladuthurai district, and that letters have been sent to district collectors with action said to have begun.
