CAG Report No. 11 of 2025 — Implementation of Smart City Mission, Government of Karnataka

i
Table of Contents
Particulars Paragraph
number
Page
number
Preface iii
Executive Summary v
Chapter-I
Introduction
About the Scheme 1.1 01
Organisation structure and their roles 1.2 03
Audit Objectives 1.3 05
Audit Criteria 1.4 05
Audit Scope & Methodology 1.5 05
Acknowledgement 1.6 06
Structure of the Report 1.7 06
Chapter-II
Planning
Selection of smart cities 2.1 07
Preparation of Smart City Proposal 2.2 08
Inclusion of projects outside Area Based
Development areas:
2.3 11
Transport and Mobility 2.4 11
Implementation of Sister Cities Concept 2.5 14
Chapter-III
Financial Management
Financial Management of SPVs 3.1 15
Non-mobilisation of financial resources for
Mission funding
3.2 16
Non-remittance of interest of ₹2.69 crore earned
on Central Sponsored Scheme (CSS) grant
3.3 18
Inappropriate use of SCM Funds beyond intended
objective
3.4 19
Other deficiencies in Financial Management 3.5 19
Chapter-IV
Implementation of Projects and Monitoring
Non-contribution of minimum paid up Capital 4.1 24
Non-appointment of Chief Executive Officer 4.2 25
Lack of Operational Independence 4.3 26
Delay in awarding of projects 4.4 26
Delay in tender evaluation process 4.5 27
Pan City Development 4.6 28
Implementation of smart solutions by SPVs 4.7 34
Design of footpaths 4.8 42
Impact assessment of Smart City Projects 4.9 42
Absence of coordination between SPVs and user
Department
4.10 43