According to the audit inspection by the Assistant Controller of the Local Audit Circle for the period between 1994 and 2010, of the 185 gram panchayats there was misappropriation of grants of Rs 169.50 crore in 21 gram panchayats.

The audit has also revealed the misuse of funds collected as taxes without issuing receipts. The auditors have also objected to the spending of money without supporting bills or vouchers.

The audit report states that last year 13 gram panchayats misused Rs 2.42 lakh which were collected as taxes duly issuing receipts, but the same were not deposited in the Treasury. The irregularity has been found in five GPs of Chitradurga taluk, Molakalmuru (3), Challakere (1) and Hosadurga (4) .

In another case last year, Rs 26.23 lakh was withdrawn by using a self cheque. There was no supporting documents for the withdrawal of this money. Drawing money using self cheque is a criminal offence. Withdrawal of money using self check was reported in three gram panchayats of Chitradurga taluk and one grama panchayat of Molakalmuru taluk.

Without bill
The audit report states that the gram panchayat presidents, secretaries and panchayat development officers are responsible for the misappropriation. Similarly, a payment of Rs 24.99 lakh has been made without supporting bill or voucher.

The offence has been reported from five gram panchayats of Chitradurga taluk, Challakere (12), Hiriyur (14) and Holalkere (3). Similar discrepancies have been reported from various other gram panchayats with the total misappropriation amounting to Rs 169.50 crore.

The audit report has been submitted to taluk panchayat and zilla panchayat. No action has been taken so far. There is provision for taking criminal action against the guilty and the authority vests with chief executive officers of taluk or zilla panchayat. Zilla panchayat President C Mahalingappa said action will be taken against the guilty after studying the audit report.