The CAG has implicated her for making payment of ₹5.93 crore without inviting tender for the execution of works under the MPLAD scheme. In addition, the CAG report also found fraudulent payment of ₹84.53 lakh to a cooperative society of BJP members for works in a village of Anand district of Gujarat adopted by her.

Smriti Irani was elected as member of Rajya Sabha from Gujarat and selected Anand district as her nodal district for implementation of works under the MPLAD Scheme.

Initially, the MPLAD projects were being executed by Gujarat State Rural Development Co-operation (GSRDCL). Following the termination of the arrangement with the rural development co-operation was closed, the works were awarded to Sharda Majdoor Kamdar Sahkari Mandli, Kheda under instructions from the textiles minister’s secretariat. This was in violation of the MPLAD guidelines which required the district authority to select an appropriate implementing agency.

MPLAD guidelines prohibit members of parliament from selecting the implementing agencies, this being the root cause of corruption.

Sharda Majdoor Mandli was selected without following the prescribed procedure purely on instructions of the minister’s personal assistant.

CAG detected major instances of bungling in execution of works from MPLAD funds by this society. In 2016 the Sharda Majoor Kamdar Mandli claimed ₹45.20 Lakh for the renovation of the same Panchayat building for which amount was granted and released in the preceding year.