---
title: "CAG Report Sparks Political War in Odisha: BJP Targets BJD Over Alleged ₹2,880 Crore DMF Fund Misuse"
url: https://mediathepower.com/cag-report-sparks-political-war-in-odisha-bjp-targets-bjd-over-alleged-%e2%82%b92880-crore-dmf-fund-misuse/
date: 2026-10-06
modified: 2026-10-11
lang: en
author: "Rajiv Singh"
description: "BHUBANESWAR — The ruling Bharatiya Janata Party (BJP) has launched a fierce political counter-offensive against the opposition Biju Janata Dal (BJD), citing a newly tabled performance audit by the Comptroller..."
categories:
  - "News"
image: https://mediathepower.com/wp-content/uploads/2026/10/bjp.jpg
word_count: 258
---

# CAG Report Sparks Political War in Odisha: BJP Targets BJD Over Alleged ₹2,880 Crore DMF Fund Misuse

**BHUBANESWAR** — The ruling [Bharatiya Janata Party (BJP)](https://www.thestatesman.com/bhubaneswar/bjp-cites-cag-findings-to-target-bjd-over-wasteful-spending-of-dmf-funds-1503645244.html) has launched a fierce political counter-offensive against the opposition [Biju Janata Dal (BJD)](https://www.newindianexpress.com/states/odisha/2026/Oct/01/cornered-over-mmdr-odisha-bjp-finds-cag-dmf-ammo-to-hit-hard-at-bjd), citing a newly tabled performance audit by the **Comptroller and Auditor General (CAG)**. The report has exposed **large-scale irregular spending and severe lapses** in the utilisation of District Mineral Foundation (DMF) funds between 2015-16 and 2023-24 under the previous Naveen Patnaik-led government.

According to the CAG report recently tabled in the Odisha state Assembly, widespread irregularities involving nearly **₹2,880 crore in DMF funds** were detected across mineral-rich districts, including Keonjhar, Sundargarh, and Jajpur. Key highlights from the audit include **Diversion of Funds:** Approximately **₹983 crore** was spent on infrastructure and development projects in villages completely unaffected by mining operations, while **584 directly affected villages were entirely excluded** from benefits and **Wasteful Expenditures:** Public money intended for tribal and mining-affected communities was diverted toward **renovating reading rooms at district collectors' residences**, refurbishing municipality offices, buying police patrolling vehicles, and constructing a hockey stadium.

Armed with the audit findings, BJP spokespersons Dr. Tapan Chand and Anil Biswal escalated their attack, accusing the BJD regime of "looting" funds meant for marginalized communities. "The BJD must clarify who pocketed the DMF funds meant for the tribal and poor populations," Biswal stated during a press conference. The ruling party has formally challenged the BJD to an open debate regarding the CAG findings.

The counter-offensive comes at a crucial time when the BJP itself was facing heat from the BJD over recent amendments to the Mines and Minerals (Development and Regulation) (MMDR) Act.