Telangana Issues Strict Guidelines And CAG Audits For Non-Lapsable Road Safety Funds

- Non-Lapsable Fund Structure: Revenue gathered through road safety cess under the Telangana Motor Vehicles Taxation (Amendment) Act, 2026, will be channeled into the dedicated Telangana Road Safety (Non-Lapsable) Fund, administered by the State Road Safety Council chaired by the Chief Minister.
- Mandatory CAG Auditing: District-level receipts and expenditures will be managed through an online accounting system subject to mandatory audits by the Comptroller and Auditor General of India (CAG), with transaction logs submitted directly to the Supreme Court Committee on Road Safety portal.
- District Committees & Enforcement: District Collectors have been instructed to activate District Road Safety Committees immediately, conduct mandatory monthly review meetings, appoint dedicated coordinators, and secure nodal officers from police, healthcare, education, and civic departments.
The Context & Background
The move integrates key infrastructure and emergency response bodies, including the National Highways Authority of India (NHAI), 108 EMRI services, and the Additional Director General of Police (Road Safety), into a unified oversight mechanism. Multiple state agencies must now submit quarterly action-taken reports to track safety interventions and black-spot remediation systematically.
The Big Picture:By enforcing mandatory CAG scrutiny and tying local allocations to the Supreme Court Committee on Road Safety, the framework ensures road cess collections cannot be quietly diverted into general state coffers. It holds District Collectors and enforcement departments directly accountable for accident-reduction milestones, potentially accelerating emergency trauma response times and hazardous road repairs across Telangana.
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