The State Government had not brought out any guidelines for construction of hostels. The non-construction of hostel at Byadgi and the incomplete work at Betagera indicated lack of proper planning/prioritisation in constructing the hostels. The number of students accommodated in the hostels in the State exceeded the envisaged capacity. This was because the State Government directed (July 2013) the Social Welfare department to accommodate all SC students who have sought admission for the hostels, irrespective of the sanctioned strength of the hostels. Out of 190 test-checked hostels in 16 taluks, 74 hostels (39 per cent) were accommodating more students than the capacity. In 10 hostels, the crowding was to the extent of more than 100 per cent. On the other hand, 85 hostels (45 per cent) of the hostels were under-utilised. In 18 hostels, the extent of underutilisation was less than 10 per cent and in 30 hostels, it ranged between 12 to 25 per cent. While the extent of under-utilisation in 26 hostels ranged between 26 to 50 per cent, it was 53 to 83 per cent in the balance 11 hostels. It was also seen that crowding was more in girls’ hostels as compared with the boys’ hostels. The exemption provided under clause 4(g) of the KTPP Act, 1999, violated the guidelines of Central Vigilance Commission and was against the judgement of the Hon’ble Supreme Court. This led to indiscriminate entrustment of works on nomination basis to the agencies. There were delays in commencement and completion of works by the constructing agencies. In violation of the codal provisions, the department entrusted 12 works estimated to cost INR 45.63 crore to these agencies without ensuring the availability of sites. The department had not furnished the details of repair/ renovation works taken up during the period 2013-14 to 2015-16. Further, 376 (50 per cent out of 755 works taken up during 2016-17 and 2017-18 with a stipulated period of six months’ completion were yet to be completed. There were instances of nonexecution of repair/ renovation works which were incorrectly reported as being completed. There were deficiencies in providing facilities such as cots, beds, mattresses, toilets and bathrooms to the inmates of the test-checked hostels. The tendering process was not compliant with the provisions of the KTPP Act, 1999. The evaluation of tenders was not consistent with the criteria spelt out in the tender documents. Awarding several works in excess of the capacity of the contractors led to chronic delay in execution of works. Funds were released in lump sum to the construction agencies without effecting statutory deductions and Further Security Deposit (FSD) resulting in nonrecovery of INR 14.86 crore towards income tax and INR 37.16 crore towards FSD. The constructing agencies retained the savings realised on construction of works without remitting it to the department. The construction agencies/department officers did not comply with the various instructions stipulated in the sanction orders leading to absence of effective monitoring.