Bhubaneswar: The Odisha government has initiated a detailed review of the LAccMI bus scheme, now operating as the Chief Minister Bus Service (MBS), and the Ama Bus Stand scheme following a series of audit objections raised by the Accountant General (Audit-II), Odisha.

The audit has questioned fund utilisation, submission of utilisation certificates (UCs), appointment of consultants, and implementation of free bus travel facilities under the schemes. The Commerce and Transport Department has begun examining the issues flagged by the audit authority.

According to audit observations, a total grant of around Rs 2,806 crore was released for the LAccMI/MBS scheme between 2023-24 and 2025-26. However, a significant portion of the allocated funds reportedly remained unutilised at the end of each financial year. Audit records indicate that Rs 153.56 crore remained unspent in 2023-24, Rs 369.18 crore in 2024-25, and Rs 478.36 crore in 2025-26.

The Accountant General has sought clarification on why the funds remained unutilised and how additional allocations were made despite substantial unspent balances from previous years.

The audit has also raised concerns over delays in submission of expenditure details and utilisation certificates by the Odisha State Road Transport Corporation (OSRTC). It noted that expenditure reports were reportedly not submitted after the third quarter of 2024-25 and sought year-wise details of fund releases and UCs.

Questions raised over DIMTS appointment

The appointment of the Delhi Integrated Multi-Modal Transit System (DIMTS) as consultant for the LAccMI scheme has also come under scrutiny. DIMTS was reportedly engaged in October 2023 for six months at a monthly fee of Rs 2.14 crore, with the contract later extended for another six months.

The audit has sought details on whether any Expression of Interest (EOI) or market survey was conducted before the appointment. It has also requested performance evaluation reports and qualification details of the consultants engaged for the project.

Audit seeks details on Free Student Bus Travel

The Accountant General has sought detailed information regarding the free bus travel facility provided to school students under the Chief Minister Bus Service. While students were earlier given a 50 per cent fare concession, the service was made completely free in December 2025.

The audit has asked the department to explain the verification mechanism used to identify eligible students, the revenue impact of the scheme, and the amount of compensation released. Monthly and quarterly reports have also been sought. Additionally, the audit has asked whether any study was conducted to assess the scheme's impact on reducing student dropout rates.

Ama Bus Stand and Water Transport projects under scanner

The audit has also sought details related to the Ama Bus Stand scheme, now renamed the Atal Bus Stand scheme. Information has been requested on funds sanctioned, expenditure incurred, operation and maintenance costs, and unspent balances. Authorities have also been asked to clarify whether scheme funds were diverted for other purposes.

Similarly, information has been sought regarding water transport initiatives under the LAccMI programme, including ferry services, jetty construction, engagement of private boats, and utilisation of funds earmarked for these projects.

Government assures action

Responding to the audit findings, Odisha Transport Minister Bibhuti Bhusan Jena said the government would carefully examine the AG's report and take appropriate action wherever necessary.

He said the present government has rerouted 1,422 buses under the Chief Minister Bus Service and is ensuring proper utilisation of public funds.

"The government is a continuous process. Issues relating to losses under the LAccMI scheme during the previous regime had come to light. We are using resources appropriately and there will be no financial irregularities under our government. We will study the AG report and take necessary steps," the minister said.

Crackdown on illegal sand transportation

Meanwhile, Mines Minister Bibhuti Bhusan Jena said enforcement against illegal sand transportation has been intensified across the state.

He said authorities recently seized around 90 vehicles allegedly involved in illegal sand transportation from Balasore to West Bengal. Joint raids are being conducted by the Revenue and Mines departments, and 51 people were arrested in connection with illegal sand mining activities during the last month.

The minister claimed that illegal sand transportation has been brought under greater control compared to previous years through stricter enforcement measures.