The Comptroller and Auditor General of India has highlighted irregularities in the relief work carried out by the Gujarat government in the areas affected by the earthquake in 2001.

"Failure to upgrade the damaged houses in [a] uniform way and payment of housing assistance to ineligible beneficiaries led to increase in expenditure," CAG said its report for the year ending March 31 2002.

As against the 100,000 houses planned for families below poverty line, only 10,675 were constructed in a year, it noted.

It said cases of non-construction of houses without seismic proof were noticed.

A subsidy of Rs9.83 crore was sanctioned to 121 industrial units in "violation of norms", the report said.

"A test check of 228 cases out of the 763 cases of subsidy payment revealed that six district industry centres and two financial institutions -- Gujarat State Finance Corporation and Gujarat Industrial Investment Corporation -- sanctioned Rs9.83 crore to 121 cases, in violation of norms."