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

Implementation of Projects and Monitoring
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➢ Market Infrastructure Utilization: The infrastructure created for
Markets (Fish and Janata Bazaar) has remained unused for over a year.
Furthermore, due to delays in allotment, unauthorized persons have
occupied shops in the Janata Bazaar (Exhibit 4.8 and 4.9).
Exhibit 4.8: Non-utilisation of
infrastructure created for Fish Market
Exhibit 4.9: Shops occupied by
unauthorized person in Janata Bazaar
➢ Vacant 1BHK Units constructed for Urban Poor: The infrastructure
created to provide 1BHK units (80 units in total) for poor urban people
under the Vani Vilas Development initiative has faced challenges in
occupancy due to non-allotment by the concerned authority. Despite
being ready for occupation, these housing units remain unoccupied,
raising concerns about asset preservation and utilization. The prolonged
vacancy poses risks of damage and depreciation, potentially
compromising the intended benefits of the initiative aimed at providing
housing for vulnerable urban populations (Exhibit 4.10).
Exhibit 4.10: 1BHK units constructed remain unoccupied (21 June 2024).
The State Government replied (April 2025) that the upgraded hospital block
has been handed over to the Hubballi-Dharwad Municipal Corporation and
is operating at full capacity. The reply is not acceptable because the upgrade
involved enhancing the existing block and constructing a new one. However,
the provided pictures in reply pertains to the upgraded existing block, not the