The warning ignored: How a CAG audit exposed flaws in Haryana construction workers welfare scheme 2 years ago

At the core of the audit was the misuse of “work slips”, the primary document used to certify that a worker has completed the mandatory 90 days of construction work required for registration. The CAG found that the system for verifying these work slips was deeply flawed and inconsistently applied.

“With over Rs 1,000 crore disbursed under welfare schemes, the findings highlighted an urgent need for stricter verification mechanisms, digital authentication safeguards, and accountability at all administrative levels to prevent further misuse, but apparently it was not pursued with the seriousness that it deserved then,” a senior official said.

The scandal not only exposed financial leakages but also undermined the very purpose of welfare schemes intended to support genuine construction workers in the state.”

The Labour Board of Haryana had then acknowledged the findings, stating that recovery notices would be issued and action taken against officials and beneficiaries involved. However, as of December 2024, “final action was yet awaited”.

The CAG report underscored systemic lapses in verification, oversight, and data integrity within Haryana’s labour welfare framework. The large-scale misuse of public funds through forged work slips and fake documentation had raised serious concerns about governance and accountability.

In a telling observation, even cases where work slips were submitted and accepted were later flagged with objections such as: “upload valid workslips (ws)”. This contradiction, the audit noted, “indicates lack of due diligence by the Department in scrutinising the applications”.

According to the CAG report, a review of welfare schemes implemented by the state’s Labour Department revealed that between 2017–18 and 2022–23, as many as “6,56,497 benefits worth Rs 1,007.56 crore were disbursed to 2,18,901 beneficiaries across 4,053 registered establishments”. However, deeper scrutiny exposed alarming discrepancies in the system.

Mismatch between registered establishments and benefits

The audit highlighted a glaring lack of correlation between the number of registered establishments and benefits disbursed. For instance, in Gurgaon, with “2,786 registered establishments,” 3,408 beneficiaries availed “8,814 benefits amounting to Rs 9.94 crore”.

In stark contrast, Hisar reported only “42 registered establishments,” yet “1,68,004 benefits worth Rs 243.52 crore were disbursed to 49,148 beneficiaries”.

The report noted that “no attempt was made by the Board to analyse the reasons for such glaring differences”. While officials attributed the disparity to migrant worker mobility, the CAG rejected this explanation, stating that “no such study/data was available with the Board which could be used to sustain this fact”.

Nearly half the benefits went to ineligible recipients

In six test-checked districts (Faridabad, Gurgaon, Hisar, Jind, Karnal and Panipat), the audit examined 1,267 benefits worth Rs 5.34 crore and found that “577 benefits (45.54 per cent) amounting to Rs 2.20 crore (41.22 per cent) were disbursed to ineligible beneficiaries”. Reasons included missing work slips, unsigned or improperly signed documents, fake certificates, and other discrepancies.

Key irregularities that were identified in the audit included Missing Work Slips: In “136 cases,” no work slips were uploaded, yet Rs 75.48 lakh” was disbursed; Unauthorised Signatories: In “43 cases,” work slips were signed by non-competent authorities such as Sarpanchs, councillors, and clerks, leading to “Rs 11.74 lakh” in wrongful payouts; Forgery and Fake Certifications: Of 136 officials contacted for verification of 306 work slips, only nine responded. Alarmingly, six authorities denied signing “25 work slips,” exposing clear forgery;

In one case from Narnaund (Hisar), “Rs 6.04 lakh” was disbursed based on 16 work slips signed by a person who was “never a Secretary in that office; and in Barwala (Hisar), forged signatures on six work slips resulted in “RS 8.03 lakh” being disbursed.

Bogus death certificate used to claim benefits

The audit also uncovered a shocking case in Gurugram where a beneficiary claimed Rs 2.15 lakh using a fraudulent death certificate. Upon scanning the QR code, auditors were redirected to a fake website. The issuing authority later confirmed that “the death certificate was not issued by their office”.

Further irregularities were noted in which beneficiaries falsely claimed employment outside government schemes. In “29 cases”, applicants submitted work slips showing private employment while simultaneously working under MGNREGA during the same period. These false claims led to “Rs 11.66 lakh” in wrongful benefits.