The Comptroller and Auditor General (CAG) of India has found that seven cities in Karnataka — Bengaluru, Belagavi, Davanagere, Hubballi-Dharwad, Mangaluru, Shivamogga, and Tumakuru — selected under the Smart Cities Mission failed to mobilise financial resources and were largely dependent on mission grants. The CAG report, tabled in the Legislative Assembly on Thursday, said that although the seven cities proposed projects worth ₹2,907.38 crore under the Public-Private Partnership (PPP) model, projects worth only ₹1,091.05 crore were taken up, of which just 13 projects valued at ₹329.68 crore were completed. The Karnataka Urban Infrastructure Development Corporation (KUIDFC) is the nodal agency for implementing Smart City projects in the State. The report further noted that against an allocation of ₹817.72 crore under the pan-city component, projects worth ₹1,462.67 crore were taken up, indicating a diversion of funds from area-based development (ABD) to pan-city interventions. The Smart City Proposals had envisaged the development of smart roads in accordance with the TenderSure guidelines.