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CAG flags ₹1.07 crore coal compensation irregularity in Meghalaya

CAG flags Rs 1.07 crore SDRF irregularities in Meghalaya, citing compensation paid in illegal coal mining cases and wider lapses in disaster fund utilisation.

News Arena Network - Shillong - UPDATED: March 2, 2026, 03:18 PM - 2 min read

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SDRF personnel carry out a rescue operation at Mooknor in Jalyiah village, around 5 km from the East Jaintia Hills district headquarters.


The Comptroller and Auditor General (CAG) has flagged irregular utilisation of Rs 1.07 crore from Meghalaya’s State Disaster Response Fund (SDRF), including compensation paid to victims linked to illegal coal mining activities in violation of prescribed norms.

The findings were highlighted in the CAG’s 2023 audit report tabled in the Assembly on February 27, placing the Revenue and Disaster Management Department under scrutiny.

According to the report, Rs 1.07 crore was disbursed in July 2019 as compensation related to incidents arising from illegal coal mining. The audit observed
that such payments were inconsistent with SDRF guidelines.

Of the total amount, Rs 16.50 lakh was distributed among families of 14 deceased persons and five injured individuals from Mengkulgittim in Rongsa Awe village in South Garo Hills. In another case, Rs 90 lakh was paid to 18 families of miners who died at the Ksan coal mines in East Jaintia Hills, with each family receiving Rs 5 lakh.

The CAG noted that extending relief to 37 individuals associated with illegal mining activities was contrary to SDRF norms.

Coal mining in Meghalaya has remained banned since April 17, 2014, following an order by the National Green Tribunal (NGT).

Also read: Raid on illegal mine in Meghalaya: 9 held, 55 MT coal seized

In its response, the department maintained that the compensation was linked to flood damage caused by heavy rainfall and stated that it would seek ratification from the State Executive Committee (SEC). However, the CAG rejected the justification, observing that the SEC does not have the mandate to regularise expenditures connected to activities declared illegal by the NGT.

Sources indicated that the audit body may further examine compensation assurances reportedly made to families affected by an illegal mining incident at Mynsngat-Thangsko on February 5 this year.

Beyond mining-related payments, the audit flagged broader irregularities in disaster fund utilisation. It found that Rs 8.10 crore from the SDRF was spent on events such as heavy rain, strong winds, thunderstorms and hailstorms, which were not notified disasters under SDRF norms.

The report also pointed to administrative lapses, including delays of nine to twelve months in releasing compensation and 15 cases where sanctions were booked under incorrect heads of account.

While the department said it would rectify classification errors in consultation with deputy commissioners, the CAG criticised the lack of due diligence, stating that relief disbursements were approved without proper verification of compliance with established guidelines.

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