Polity · 16 Jul 2026

District Mineral Foundation Trust CAG audit

Consider the following statements regarding the CAG's performance audit of Chhattisgarh's District Mineral Foundation Trust (DMFT):

  1. The District Mineral Foundation was established under Section 9B of the MMDR Amendment Act, 2015, requiring mining companies to pay a share of royalty into a foundation for the district in which they operate.
  2. The audit found that despite 81 percent fund utilisation in sampled districts, 44 percent of directly affected villages received no coverage at all.
  3. The audit attributed the fund's diversion primarily to outright embezzlement and falsification of expenditure records by district officials.
  4. A widened definition of "Affected People" allowed funds to be spent on a broader population instead of only those directly affected by mining.

How many of the above statements are correct?

AOnly one
BOnly two
COnly three
DAll four

Tests the ability to distinguish legal definitional dilution ("mission drift") from outright corruption or embezzlement - a nuanced governance-accountability distinction requiring careful reading rather than surface-level recall.

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About this question

Why in news

A CAG audit found that Chhattisgarh's Rs 13,101-crore District Mineral Foundation Trust fund, meant to compensate mining-affected communities, was diverted toward welcome gates, collectorate gardens and official vehicles.

Why for UPSC

This tests the nuanced distinction the article draws between "mission drift" through legal definitional dilution versus outright corruption - a distinction UPSC values in questions probing whether aspirants can separate legality from propriety in governance audits.

Prelims summary

Chhattisgarh's DMFT fund, established under Section 9B of the MMDR Amendment Act 2015, saw mission drift (not outright embezzlement) after eligibility criteria were widened, leaving 44% of directly affected villages uncovered despite high fund utilisation.

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