The report pointed out that the expenditure could have been avoided as the scheme had a provision of transferring unemployment allowances directly to the bank accounts of the beneficiaries.
It stated that the state government launched the scheme in May 2012, saying quarterly payment was to be made in the saving accounts of beneficiaries either in a nationalised bank or in Kshetriya Gramin Bank.
Records of the director, training and employment, UP, revealed that the department distributed Rs 20.58 crore to 1,26,521 unemployed people as allowance by organising functions in 69 districts during the year 2012-13.
The report stated that a sum of Rs 6.99 crore was spent on travel of beneficiaries to places where functions were organised, while Rs 8.07 crore was spent on seating arrangement, refreshments, etc.
The state government, in its reply in September 2016, said the expenditure on distribution of cheques to the beneficiaries was done as per instructions issued by the government.
The CAG stated that the reply was not tenable as provision of transportation of such large number of beneficiaries was not envisaged in the scheme guidelines.
The functions have led to spending of Rs 15.06 crore which cannot be justified and show lack of financial propriety and concern for saving public money, the CAG report added.