LUCKNOW, Aug. 14 -- An audit by the Comptroller and Auditor General (CAG) has flagged serious financial irregularities in the collection of user charges under the solid waste management system of the Lucknow Municipal Corporation (LMC), exposing a loss of over Rs.16 crore between 2017 and 2021.

According to the CAG report, LMC had signed a concessionaire agreement in March 2017 with Eco Green Private Limited for door-to-door collection, transportation and processing of solid waste. As per the contract, the concessionaire was also responsible for collecting user charges from residents and establishments on behalf of the municipal body, with minimum recovery targets of 50%, 60% and 75% set for the first three years, respectively.

However,...