The CAG audit also found that 13 projects involving an expenditure of ₹76.32 crore were implemented outside the approved Area Based Development zone.
| Photo Credit: S.R. RAGHUNATHAN
Several projects under the Smart Cities Mission in Chennai were dropped, unplanned work was undertaken, and funds were spent outside the designated Smart City area, according to a performance audit by the Comptroller and Auditor General of India (CAG).
The report contains the results of the Performance Audit on Implementation of Smart City Mission in Tamil Nadu covering the period from April 2016 to March 2024, and was tabled in the Tamil Nadu Legislative Assembly on September 8.
Of the 48 projects worth ₹1,366.25 crore originally planned for Chennai, eight projects worth ₹279.03 crore were not implemented, according to the report.
These included the proposed Street Light Monitoring System worth ₹248.47 crore and the Intelligent Traffic Management System worth ₹100 crore under the Pan-city initiative. The audit noted that there was no specific justification on record for dropping the projects.
At the same time, Chennai took up 20 unplanned projects involving ₹189.66 crore. These included restoration of waterbodies, a biogas plant, modernisation of the Kannammapettai Crematorium, smart classrooms, traffic parks, and a green building at the Greater Chennai Corporation campus. The CAG said such projects were taken up without citizen consultation.
The audit also found that 13 projects involving expenditure of ₹76.32 crore were implemented outside the approved Area Based Development (ABD) area.
Further, ₹16.23 crore was diverted from funds meant for administrative and office expenses in Chennai Smart City Limited (SCL), the Special Purpose Vehicle set up to implement the Smart Cities Mission projects in Chennai, including ₹66.58 lakh towards Tamil Nadu government advertisements, ₹18.44 lakh to consultants for non-Smart City projects, ₹5.14 lakh towards workshop and printing expenses, and ₹15.33 crore towards shifting/resettlement of families.
The CAG also said Chennai SCL had only ₹10 lakh in paid-up capital against the prescribed ₹200 crore, though Chennai was the only sampled city with a full-time CEO.
On statutory approvals, the CAG specifically cited Chennai’s biogas plant, modernisation of the Kannammapettai Crematorium, and restoration of Villivakkam Tank/Suspension Bridge, for which required approvals had not been obtained.
Published – September 09, 2026 05:00 am IST
