Media reports suggest that the comptroller and auditor general of India (CAG) criticised theShimla municipal corporation (SMC) for delaying water-supply rejuvenation project.
 
 The union government cleared the project in 2009 under JNNURM and was to be completed in March, 2010. The CAG mentioned that Rs 15.92 crore was lying unspent.
 
 The corporation also drew flak for its failure to start construction of a slaughter house in Boileagunj in Shimla. This lead to a blockage of Rs 6.51 crore. The ministry of food processing industries had approved the project in 2008, however owing to local opposition and the corporation's failure to select a new site, the project got delayed.
 
 Meanwhile, as per a CAG audit, a number of municipal councils in Himachal Pradesh extended undue favours and executed work without getting the estimates approved.
 
 The audit shows that large chunks of funds sanctioned under Rajiv Gandhi Urban Renewal facility scheme for managing urban solid waste and development of public amenities and parks remained unspent. The pace of utilization of funds from 2006 to 2010 was quite low as out of sanctioned Rs 14.83 crore only Rs 7.04 crore of the funds was spent and the rest remained unspent as of February 2011, the audit shows.