Rs 1.07 Crore Paid In Illegal Coal Mining Cases In Meghalaya

A fresh audit by the Comptroller and Auditor General of India (CAG) has raised serious questions over the utilisation of disaster relief funds in Meghalaya, revealing that more than Rs 1 crore from the State Disaster Response Fund (SDRF) was disbursed as compensation in cases linked to illegal coal mining.

The audit report points to payments totalling Rs 1.07 crore made by the State Revenue and Disaster Management Department in circumstances that allegedly fall outside the scope of SDRF norms.

 Compensation in Illegal Mining Incidents

According to the findings, financial assistance was sanctioned in July 2019 to families of 14 individuals who lost their lives and five others who sustained injuries during illegal coal extraction activities at Mengkulgittim in Rongsa Awe village, South Garo Hills. The total payout in that instance amounted to Rs 16.50 lakh.

In a separate case, compensation of Rs 5 lakh each was reportedly granted to the next of kin of 18 persons who died in incidents at the Ksan coal mines, bringing the total disbursal in that case to Rs 90 lakh.

The CAG observed that extending relief to individuals engaged in unlawful mining operations directly contradicts the operational framework of the SDRF.

 Department’s Justification Rejected

State authorities defended the payments by attributing the incidents to flooding triggered by intense rainfall. However, the audit body rejected this explanation, stating that accidents connected to coal mining do not qualify as notified natural disasters under SDRF guidelines.

The report further clarified that the State Executive Committee does not have the authority to legitimise expenditure that effectively supports activities deemed illegal, particularly those prohibited by the National Green Tribunal.

 Additional Irregularities in Fund Usage

Beyond the mining-related payments, the audit identified another Rs 8.10 crore drawn from the SDRF to provide relief following heavy rain, strong winds, squalls and hailstorm events that were not officially classified as eligible disasters under the prescribed norms.

Under the SDRF framework, funds are meant exclusively for immediate assistance in clearly specified calamities such as cyclones, droughts, earthquakes, fires, floods, tsunamis, hailstorms, landslides, avalanches, cloudbursts, pest attacks and cold waves.

The report also noted procedural lapses, including delays ranging from nine months to over a year between the occurrence of certain incidents and the approval of expenditure. In several instances, the categorisation of expenses did not align with the descriptions mentioned in sanction orders.

Limited Flexibility Under ‘Local Disaster’ Clause

While states are permitted to allocate up to 10 per cent of SDRF funds for events officially declared as “local disasters,” the audit pointed out that such flexibility is conditional. Meghalaya had earlier notified lightning strikes as a local disaster in 2015, but the cases under scrutiny did not appear to fall within that defined category.

In at least 15 instances, auditors found discrepancies in how expenditures were recorded, suggesting weak compliance with classification norms. Responding to audit observations, the Department reportedly stated that it would coordinate with deputy commissioners to correct the nomenclature of certain calamities in line with guidelines.

However, the CAG concluded that the irregularities reflect a lack of rigorous scrutiny before approving the release of funds. A thorough review process, it said, would have identified inconsistencies between the sanctioned relief measures and the official disaster categories recognised under SDRF rules.

Also Read: Gauhati HC Holds Crucial Hearing on Illegal Coal Mining in Assam