The central government has given about Rs 54.54 crore for modernisation of state police force during 2011-12. About Rs 27.68 crore was spent whereas remaining nearly Rs 26.85 crore was deposited via challan in the account of Accountant General, Gwalior.
The amount was later 'hastily withdrawn' without taking necessary approval. It is against financial rules, the audit report said.
Of this unused sum, about Rs 4 crore was meant for strengthening police infrastructure in Naxal-affected districts of the state and Rs 60 lakh were for anti-human trafficking cell, it said.
The report, which was accessed by activist Ajay Dubey exercising his Right to Information, found that authorities have violated norms of Industrial Promotion Policy 2004, which mandates that about 30 per cent of purchase has to be done from businessman or industrialists of Scheduled Castes and Scheduled Tribes category.
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About Rs 6 crore has to be used for this purpose, it said.
The report prepared by AG, which act as distant arm of Comptroller and Auditor General (CAG), pointed out that authorities failed to realise Rs 18.44 crore from government and private bodies for police guards provided to them for security purposes.
A water-cooled generator, purchased by the department for Rs 27.40 lakh, was lying unused, the report said.
The audit found that utilisation certificates of construction related work under police modernisation programme carried out by the department at the cost of Rs 322 crore and Rs 15 lakh meant for scholarship under police welfare schemes were not submitted.
It found that an extra amount of Rs 2.34 lakh was spent on footing telephone bills of police officials.