In its report on the ICDS for 2012-13, tabled in the Parliament today, the CAG criticised the ministry of Women and Child Development (WCD) for "inadequacy" in monitoring systems under the scheme to combat child malnutrition.
The report said that in Haryana, Rs 38.6 crore received for supplementary nutrition was diverted during 2006-11 to Ladli scheme, payment of honorarium to anganwadi workers and for purchase of furniture for new anganwadi centres.
The audit also pointed out another instance where Rs 6.08 crore received for IEC activities were diverted for purchase of computers.
There was similar diversion of funds by Odisha, Karnataka and Rajasthan, the report said and recommended that funds should be utilised as per guidelines and that there should be no diversion of funds meant for a particular scheme.
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Pointing out more irregularities, the CAG audit said in five sample states, Rs 70.11 crore of the scheme funds were retained in civil deposits, personal ledger accounts, bank accounts and treasury accounts.
The audit report pulled up the WCD ministry saying registers for grants-in-aid for the period 2006-11 for releasing funds were not properly maintained.