CAG report: TMC govt inflated Amphan losses to claim higher central relief funds
Synopsis
Key Takeaways
The Comptroller and Auditor General of India (CAG) has found that the previous Mamata Banerjee-led All India Trinamool Congress (TMC) government in West Bengal projected inflated and unrealistic losses from Super Cyclone Amphan (2020) to secure higher central relief assistance. The finding is part of one of 28 CAG reports tabled on the floor of the West Bengal Legislative Assembly on Saturday, 26 July, by state Finance Minister Swapan Dasgupta.
What the CAG Found
According to the report, the projected post-Amphan losses were not only inflated but also lacked substantiating evidence. The CAG auditors noted that the state government failed to provide adequate documentation to justify the figures submitted for central relief, making it impossible to independently estimate the actual scale of damage caused by the super-cyclone.
The report identified a significant internal inconsistency in the compensation structure. Until June 2020, the state government had projected a uniform payout of ₹20,000 to families whose homes were damaged — whether completely or partially. After June 2020, however, the compensation for partially damaged houses was revised upward to ₹25,000, while the amount for completely damaged homes remained at ₹20,000. The CAG auditors received no satisfactory explanation from the state government for this anomaly despite repeated queries.
Duplicate Payments and Beneficiary Fraud
The report flagged a pattern of multiple compensation payments being made to the same individual — a lapse the CAG described as indicative of serious failures in the beneficiary selection process. The highest concentration of such cases was found in South 24 Parganas, the district most severely hit by Cyclone Amphan, along with Nadia, East Midnapore, and West Midnapore.
Investigators also found mismatches between bank account numbers listed in the beneficiary records and those reflected in actual bank transaction data. This discrepancy was identified across 1,44,175 transactions, with a combined value of ₹125.07 crore. The CAG said these inconsistencies pointed to the absence of adequate controls in the Direct Benefit Transfer (DBT) mechanism before disbursements were made.
The Scale of Cyclone Amphan
Super Cyclone Amphan made landfall on 20 May 2020, battering 16 districts of West Bengal. The storm was among the most destructive to hit the eastern coast in recent decades, with official figures recording 99 deaths. The cyclone caused widespread damage to housing, agriculture, fisheries, forests, power infrastructure, irrigation systems, health facilities, and industries — particularly in coastal districts.
Significance and What Comes Next
The CAG findings carry political weight in West Bengal, where the Bharatiya Janata Party (BJP)-led central government and the TMC have been in prolonged conflict over relief fund utilisation and governance standards. The tabling of all 28 CAG reports in a single session is itself notable, as audit reports had accumulated over several years. Critics argue the findings validate long-standing allegations of irregularities in Amphan relief distribution. The state government is expected to respond formally to the CAG observations, and the matter may be taken up by the Public Accounts Committee for further scrutiny.