CAG audit exposes 83 crore property tax evasion scam in Kolkata Municipal Corporation

A Comptroller and Auditor General (CAG) audit has revealed a massive 83 crore tax evasion scheme operating within the Kolkata Municipal Corporation (KMC). The audit uncovered significant financial irregularities, including bypassed revenue collection mechanisms and deliberate loopholes. According to media reports, municipal funds appear to have been mishandled, which raises serious questions about internal controls and possible collusion. 

The CAG investigation highlighted major gaps in the KMC’s revenue collection processes, pointing to both systemic weaknesses and instances of evasion. Auditors flagged the evasion of around Rs 83 crore as a critical loss that needs urgent recovery. Following the findings, the CAG has formally sought a detailed report from KMC authorities along with concrete corrective actions. This includes strengthening monitoring mechanisms and plugging loopholes to prevent future financial mismanagement. This brings the total amount of dues to 1,296.21 crores. Raj Bhavan alone owes over र29.25 crore since 1974

As expected, the scandal has sparked calls for strict administrative accountability and swift recovery of the evaded amount. The KMC is now under pressure to act decisively on the CAG recommendations to restore public trust.