Audit of Scheme Rules 2026 related to VB G RAM G Act 2025

The Gazette of India

CG-DL-E-07082026-275274

EXTRAORDINARY

PART II—Section 3—Sub-section (ii)

PUBLISHED BY AUTHORITY

No. 4187] NEW DELHI, FRIDAY, AUGUST 7, 2026/SHRAVAN 16, 1948

MINISTRY OF RURAL DEVELOPMENT
(Department of Rural Development)
NOTIFICATION
New Delhi, the 7th August, 2026

S.O. 4363(E).— Draft of rules proposed to be made by the Central Government, in exercise of the powers
conferred by sub-section (1) of section 33 read with clauses (g) and (n) of sub-section (2) of section 33, sub-section
(2) of section 20 and clause (e) of section 24 and sub-section (1) of section 26 of the Viksit Bharat – Guarantee for
Rozgar and Ajeevika Mission (Gramin): VB – G RAM G (विकवित भारत – जी राम जी) Act, 2025 (36 of 2025), on or after the
date of coming into force of the Act, are hereby published for the information of all persons likely to be affected
thereby; and notice is hereby given that the said draft rules shall be taken into consideration after the expiry of a
period of 30 days from the date on which copies of this notification as published in Official Gazette, are made
available to the public;

Objections or suggestions, if any, may be addressed, within the stipulated period from the date of
publication of this notification, to Ms. Deeksha Supyaal Bisht, Assistant Commissioner, Department of Rural
Development, Ground Floor, Kartavya Bhawan–3, New Delhi – 110001, or may be sent through e-mail at
suggestion-vbgramg@gov.in
The objections or suggestions, which may be received from any person with respect to the said draft rules
before the expiry of the aforesaid period shall be considered by the Central Government.

DRAFT RULES
1. Short title and commencement. – (1) These rules may be called the Viksit Bharat – Guarantee for Rozgar and
Ajeevika Mission (Gramin): VB- G RAM G (विकवित भारत – जी राम जी) Audit of Schemes Rules, 2026.
(2) For the purposes of these rules, the audit of schemes shall include social audit.
(3) They shall come into force on the date of their publication in the Official Gazette.

2. Definitions. – In these rules, unless the context otherwise requires, –
(a) “Act of 2005” means the Mahatma Gandhi National Rural Employment Guarantee Act, 2005;
(b) “Act” means the Viksit Bharat – Guarantee for Rozgar and Ajeevika Mission (Gramin): VB-G RAM
G (विकवितभारत – जीरामजी) Act, 2025;
(c) “case” means any instance of irregularity, deviation, omission, violation, misappropriation, noncompliance, grievance, or deficiency identified through the social audit process, including those
requiring corrective, punitive, or recovery-related action;
(d) “designated digital portal” means the official web-based platform or integrated digital system
provided by the Central Government or the State Government, as the case may be, for the purposes of
hosting, disclosing, managing, tracking, and monitoring social audit findings, Action Taken Reports,
recoveries, escalations, public disclosures, and related records under these rules;
(e) “District Programme Coordinator” means an officer of the State Government designated as such
officer under sub-section (1) of section 17 of the Act for the implementation of the Scheme in a district;
(f) “intermediate level” means a level between the village and district levels as specified under clause
(c) of Article 243 to the Constitution of India;
(g) “Programme Officer” means an officer at the Block level appointed under sub-section (1) of section
18 of the Act;
(h) “State Council” means the State GraminRozgar Guarantee Council constituted under sub-section (1)
of section 13 of the Act;
(i) “Social Audit Gram Sabha” means a special meeting of the Gram Sabha convened for the purpose
of conducting social audit under these rules, including verification of records, public discussion of
findings, hearing of testimonies, and review of Action Taken Reports;
(j) “Social Audit Unit” means the independent institutional mechanism identified or established by the
State Government under the Act for facilitating, coordinating, and overseeing social audits, and includes
its Governing Body, Director, officers, staff, and resource persons at the State, district, block, and village
levels, namely State Resource Persons (SRPs), District Resource Persons (DRPs), Block Resource
Persons (BRPs), and Village Resource Persons (VRPs);
(k) “Action Taken Report” or “ATR” means a written, digital, and verifiable report submitted by the
Programme Officer or the District Programme Coordinator, as the case may be, detailing the corrective,
punitive, recovery-related, or administrative actions taken or proposed to be taken on the findings of a
social audit;
(l) “Observer” means the District Programme Coordinator or an officer of appropriate rank nominated
by him for the purpose of attending the Social Audit Gram Sabha to ensure the smooth, fair, and
transparent conduct of the proceedings.

3. Audit of accounts.- (1) The audit of the accounts of a scheme under the Act for each district, as well as all
expenditure under the Scheme, shall, for each year, be carried out by the Director, Local Fund Audit, or equivalent
authority or by Chartered Accountants, preferably empanelled with the Comptroller and Auditor General of India.
(2) The Director, Local Fund Audit, or equivalent authority, or the Chartered Accountant, as the case may be, shall
submit accounts of the scheme together with the audit report thereon to the State Government.
(3) The accounts of the schemes of every State Government, as certified together with the audit report
thereon shall be forwarded to the Comptroller and Auditor General of India and the Central Government by the State
Government. The Central Government shall cause the audit report to be laid, as soon as may be after they are
received, before each House of Parliament.
(4) The Comptroller and Auditor General of India, or any person appointed by him in this behalf, shall have
the right to conduct audit of the accounts of schemes at such intervals as he may deem fit.
The scope and extent of such audit, including supplementary audit of accounts, compliance audit, performance audit,
and information technology audit, shall be determined by the Comptroller and Auditor General of India.

4. Social audit to be part of audit of schemes.-(1) The State Government shall facilitate conduct of social audit of
the works taken up under the Act in every Gram Panchayat at least once in six months in the manner prescribed under
these rules.
(2) A summary of findings of such social audits conducted during a financial year shall be submitted by the
State Government to the Comptroller and Auditor General of India.

5. Social audit facilitation.-(1) The State Government shall identify or establish, under the Act, an independent
organisation (hereinafter referred to as the Social Audit Unit) to facilitate the conduct of social audit by Gram Sabhas.
Provided that any Social Audit Unit established under the Act of 2005 may be continued for the purposes of this Act.
Provided further that all such existing Social Audit Units shall, within such period as may be specified by the Central
Government, transition to and fully comply with the institutional, procedural, digital, and reporting requirements
prescribed under these rules, the Act, and any instructions issued by the Central Government thereunder.
(2) The Social Audit Unit shall be responsible for the following, namely: —

(a) build capacities of Gram Sabhas for conducting social audit; and towards this purpose, identify, train and
deploy suitable resource persons at village, block, district and State level, drawing from primary stakeholders and
other civil society organisations having knowledge and experience of working for the rights of the people. The
minimum staffing norms for the Social Audit Unit, including education and experience qualifications, mode of
selection, and tenure shall be within the overall ambit of Auditing Standards and Scheme guidelines.

(b) identification, training of local people as social auditors; and formation of trained social auditor teams for
each Gram Panchayat with people from outside the Gram Panchayat to conduct social audit, provided that at least
25% of village social auditors are from SC/ST households. For services rendered by such people, each of them shall
be paid an honorarium at a rate not less than the remuneration payable to the skilled labour under the provisions of the
Act.
(c) prepare social audit reporting formats, resource material, guidelines and manuals for the social audit
process;
(d) create awareness amongst the labourers about their rights and legal guarantees under the Act;
(e) facilitate verification of records with primary stakeholders and work sites;
(f) facilitate smooth conduct of social audit Gram Sabhas for reading out and finalising decisions after due
discussions;
(g) host the social audit reports, including action taken reports, in the public domain.
(3) Governing Body of the Social Audit Unit. — Every Social Audit Unit shall be headed by a Governing
Body, which shall be responsible for overseeing the functioning and performance of the Unit on a periodic basis and
for providing strategic guidance, advice and direction to the Unit, as and when required.
(4) Composition of the Governing Body. —The Governing Body shall, at a minimum, consist of the
following members, namely: —
(a) the Principal Accountant General (Audit) of the State shall be the Chairperson;
(b) the Principal Secretary, Department of Rural Development or Panchayati Raj;
(c) the Director, Social Audit Unit;
(d) five representatives from civil society organisations, academic or training institutions, having longstanding experience in issues relating to transparency, accountability, and people’s participation, of whom at least two
shall be women;
(e) such other special invitees from Departments undertaking social audits in their programmes, as may be
considered necessary.
(5) Director of the Social Audit Unit – The selection, appointment, tenure, and terms and conditions of
service of the Director of the Social Audit Unit shall be such as may be specified by the Central Government.
(6) Convener. —The Director, Social Audit Unit shall act as the Convener of the Governing Body.
(7) Safeguards for independence. — The Principal Secretary, Department of Rural Development or
Panchayati Raj shall not chair the Governing Body, in order to ensure the independence of the Social Audit Unit from
the implementing agencies.
6. Social audit pre-requisites.-(1) The Social Audit shall be a process independent of any process undertaken by the
implementing agency of the scheme.
(2) The implementing agency shall at no time interfere with the conduct of the social audit.
(3) Notwithstanding anything contained in sub-rule (2), the implementing agency of the Scheme shall
provide the requisite information to the Programme Officer for making it available to the Social Audit Unit at least
fifteen days prior to the date of commencement of the social audit.

(4) The resource persons deployed for facilitating social audit in a Panchayat shall not be residents of the
same Panchayat.

7. Process for Conducting Social Audit. – (1) The Social Audit Unit shall, at the beginning of the year, frame an
annual calendar to conduct at least one social audit in each Gram Panchayat every six months, and a copy of the
calendar shall be sent to all the District Programme Coordinators for making necessary arrangements.
(2) Verification for Social Audit: For facilitating the conduct of social audit by the Gram Sabha, the resource persons
deployed by the Social Audit Unit, along with primary stakeholders, shall undertake verification of—
(i) muster rolls, entries and payments made during the specified period, including verification with wage
seekers whose names appear on the muster rolls;
(ii) the work site and assess the quantity with reference to records and also quality of work done;
(iii) the cash book, bank statements and other financial records to verify the correctness and reliability of
financial reporting;
(iv) the invoices, bills, vouchers, or other related records used for procurement of materials to testify that
such procurement was as per the estimate, as per the procedure laid down and was economical;
(v) any other payments made by the implementing agency from funds of the Scheme.
(3) Public Participation and Gram Sabha- The labourers and the village community shall be informed about
the Gram Sabha conducting social audit by the resource persons as well as the Programme Officer, to ensure full
participation.
(4) To conduct the social audit process, a Gram Sabha shall be convened to discuss the findings of the
verification exercise and also to review the compliance with transparency and accountability, fulfilment of the
guarantees of labourers and proper utilization of funds.
(5) All elected members of Panchayats and staff involved in implementing the schemes under the Act shall
be present at the Gram Sabha and respond to queries.
(6) The Gram Sabha shall provide a platform to all villagers to seek and obtain further information and
responses from all involved in the implementation. It will also provide a platform to any person who has any
contribution to make and relevant information to present.
(7) The District Programme Coordinator shall attend the Gram Sabha meeting as an observer or nominate an
official of appropriate level to do so, for ensuring the smooth and transparent conduct of the Gram Sabha.
(8) The Social Audit Unit shall prepare the social audit reports in the local language and ensure that the same
are displayed on the notice board of the Gram Panchayat. The findings of the social audit and the corresponding
Action Taken Reports shall be digitally displayed and made available on the designated portal in a searchable,
machine-readable, and downloadable format.
(9) All Action Taken Reports (ATRs) submitted pursuant to social audit findings shall be placed before a
public hearing at the intermediate-level, to be convened at least once every month, for review of their adequacy,
completeness, and satisfactory nature.
(10) The Action Taken Report (ATR) relating to the findings of the previous social audit, along with the
remarks, if any, recorded during the intermediate-level public hearing, shall be read out and discussed at the beginning
of the meeting of each Social Audit Gram Sabha.

(11) The process of conducting Social Audit shall be facilitated through the designated digital portal.
8. Obligation of certain persons in relation to social audit.- (1) The Programme Officer shall ensure that all the
required information and records of all implementing agencies such as, GraminRozgar Guarantee Card register,
Employment register, work Register, Gram Sabha Resolution, Copies of the sanctions (Administrative or Technical or
Financial), Work Estimate, Work Commencement Order, Muster-roll issue and receipt register, muster Rolls, wage
Payment Acquittance& order, Materials – Bills and vouchers (for each work), Measurement Books (for each work),
Asset Register, Action Taken Report on previous social audits, grievance or complaints register, any other documents
that the Social Audit Unit requires to conduct the social audit process are properly collated in the requisite formats;
and provided, along with photocopies, to the Social Audit Unit for facilitating conduct of social audit at least fifteen
days in advance of the scheduled date of meeting of the Gram Sabha conducting social audit.
(2) The information referred to in sub-rule (1) shall be made publicly available at the same time, and
photocopies thereof shall be provided at a nominal cost. All such records shall also be placed in the public domain
through the designated portal in a searchable, machine-readable, and downloadable format to ensure transparency,
accessibility, and public scrutiny.

(3) Every District Programme Coordinator or any official on his behalf, shall, —
(a) ensure that all records for the conduct of social audit are furnished to the Social Audit Unit by
implementing agencies through the Programme Officer;
(b) ensure that corrective action is taken on the social audit report;
(c) take steps to recover the amount embezzled or improperly utilised and issue receipts or
acknowledgements for amounts so recovered;
(d) recover the amount and remit the Central Government’s share to the Central Government in accordance
with the extant General Financial Rules and the relevant instructions issued in this regard by the Central Government;
and
(e) recover the amount and remit the State Government’s share to the State Government in accordance with
the extant State Financial Rules and the applicable instructions issued in this regard.
(f) ensure that appropriate action (including initiating criminal and civil proceedings or termination of
services) is initiated against the individual or class of individuals or persons who misutilised or embezzled the amount
meant for the schemes under the Act.
(g) review the pendency of ATR regularly and take necessary action.
(4) The State Government shall be responsible to take follow-up action on the findings of the social audit.
(5) The State GraminRozgar Guarantee Council shall monitor the action taken by the State Government and
incorporate the Action Taken Report in the annual report to be laid before the State Legislature by the State
Government.

9. Time-bound Corrective Action and Disclosure.— (1) The Social Audit Unit shall ensure that the findings of the
social audit, along with the signed joint report and the minutes of the Gram Sabha discussions, are uploaded on the
designated digital portal within seven days from the date of the Social Audit Gram Sabha meeting, and are made
available through the portal to the Observer, elected members of the Panchayats, and staff involved in implementation
who were present at the meeting.
(2) The Observer, elected members of the Panchayats, and staff involved in the implementation of the
schemes who were present at the meeting shall have a period of seven days from the date of such upload to point out
any errors, omissions, or inaccuracies therein.
Provided that where no such observations are received within the said period, the uploaded report shall be
deemed to be final and shall be automatically forwarded to the Programme Officer through the designated digital
portal at the end of ten days from the date of upload.
(3) The finalised findings of the social audit shall be forwarded by the Social Audit Unit to the Programme
Officer within twenty-one days from the date of the Social Audit Gram Sabha meeting for further action and for
submission of the Action Taken Report.
(4) The Programme Officer shall take necessary corrective and punitive action, as applicable, and shall
submit the Action Taken Report to the Social Audit Unit within thirty days from the date of receipt of the findings.
Provided that where the Programme Officer fails to submit the ATR within the said period of thirty days, the
matter shall stand automatically escalated to the District Programme Coordinator on the designated digital portal, and
the District Programme Coordinator shall submit the ATR within a further period of thirty days.
(5) The Action Taken Reports so submitted to the Social Audit Unit shall be placed for discussion before the
next intermediate-level public hearing within thirty days from the date of receipt of the ATR, and the Social Audit
Unit shall take further necessary action.
(6) The Social Audit Unit may close a case upon being satisfied with the Action Taken Report (ATR)
submitted by the Programme Officer or the District Programme Coordinator, as the case may be, after due discussion
of the same in the intermediate-level public hearing, and shall record its decision within fifteen days from the date of
such public hearing.
(7) In all cases, the entire process of findings, follow-up action, submission of the Action Taken Report
(ATR), escalation, if any, public hearing review, and closure shall be completed within a period of seven months from
the date of the Social Audit Gram Sabha meeting.
(8) A fixed proportion of the social audit cases shall be mandatorily and randomly selected for inspection by
the Block, District, and State-level resource persons of the Social Audit Unit, in such manner and proportion as may
be specified by the Central Government or the State Government, as the case may be. The Social Audit Unit shall
regularly conduct test audits and special audits to verify the quality, accuracy, and integrity of social audits conducted
under the provisions of the Act.

(9) The status of the social audit findings and the action taken thereon shall be made available in the public
domain through the designated digital portal.

10. Recovery and Accountability. – (1) All amounts identified as misappropriated shall be recovered within a period
of five months from the date of the Social Audit Gram Sabha. The State Government shall be responsible for ensuring
completion of the recovery process and for maintaining digitally reconciled and verifiable records of such recoveries.
(2) Individuals or vendors found responsible for fraud, misappropriation, or serious financial irregularities
shall be subject to necessary corrective and punitive action in accordance with applicable laws and rules.

11. Public Disclosure and Transparency. — (1) A public-facing digital dashboard shall display, in a user-friendly,
searchable, and downloadable format, the following information, namely: —
(a) social audit findings and cases;
(b) minutes of the Social Audit Gram Sabha meetings;
(c) Action Taken Reports (ATRs) submitted by the Programme Officer or the District Programme
Coordinator, as the case may be;
(d) details of corrective and punitive action taken in respect of each case;
(e) recovery status of misappropriated amounts, if any;
(f) status of grievances, appeals, and their disposal; and
(g) any other information as may be determined by the Central Government.
(2) The State Government shall be responsible for ensuring that all information referred to in sub-rule (1) is
uploaded, updated, and maintained on the designated digital portal in a timely and accurate manner, and for taking
such administrative and technical measures as may be necessary to enable continuous public access thereto.
(3) The Social Audit Unit shall prepare the social audit report in the local language to ensure accessibility.
The translated versions thereof shall be published on the designated digital portal alongside the original reports and
shall be treated as authentic for the purposes of public disclosure, citizen engagement, and public scrutiny.
(4) All social audit findings and the corresponding Action Taken Reports (ATRs) shall be made available for
discussion in weekly public disclosure meetings at the Gram Panchayat, intermediate, and District level, for the
information of the community and to enable continuous public oversight.
(5) The Social Audit Unit shall ensure digital disclosure of all activities undertaken by it, including the status
of audits, pendency of Action Taken Reports (ATRs), and actions initiated. The Social Audit Unit shall also prepare
and publish consolidated quarterly and annual reports on the conduct of social audits, findings, follow-up actions, and
case closures on the designated digital portal.
(6) The State Gramin Rozgar Guarantee Council shall monitor the action taken by the State Government and
incorporate the Action Taken Report in the annual report to be laid before the State Legislature by the State
Government. The State Government shall, after the laying of such report before the State Legislature, publish the same
in the public domain on the designated digital portal for public access and scrutiny.

12. Funding of Social Audit Unit. – (1) The expenditure towards the establishment of the Social Audit Unit and the
conduct of social audits shall be borne by the Central Government, in accordance with the instructions issued from
time to time, under the head of Administrative Expenses as provided in Section 22 of the Act and as specified in the
Viksit Bharat – Guarantee for Rozgar and Ajeevika Mission (Gramin): VB-G RAM G (विकवित भारत – जी राम जी) –
Administrative Expenses Rules, 2026
(2) Expenditure on social audit activities, including capacity-building, training, field verification, public
hearings, reporting, and disclosure, shall be provided for as part of administrative and capacity-building costs, subject
to a ceiling not exceeding one per cent (1%) of the total expenditure:
Provided that the administrative expenditure, including the expenditure towards social audit, shall be within
the overall ceiling of nine per cent (9%) of the total expenditure.

[F. No. J-11060/15/2026- RE-III]
ROHINI R BHAJIBHAKARE, Jt. Secy.

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