The Comptroller and Auditor General's Audit Report 2006-2007 for Madhya Pradesh exposes serious violation of the Forest (Conservation) Act, 1980 by pointing out that mandatory compensatory afforestation (CA) was not carried out in 70 per cent of the projects where forest land was diverted for non-forest purposes during last ten year period (1997-2007) in the State. As per the provisions of the Act, prior permission of the Government of India was essential for diversion of forest lands for non-forest purposes. While approving a proposal under the Act, the Central Government stipulates mandatory compensatory conservation measures such as compensatory afforestation and catchment area treatment -- the cost of which is borne by the user agencies. Performance Audit of the implementation of the Forest (Conservation) Act in Madhya Pradesh revealed significant cases of violation of the Act and absence of execution of compensatory conservation measures in most of the cases where forest land had been diverted for non-forest purposes. As a result, objectives of the Act largely remain unachieved in the State, the CAG Report points out. Performance audit by the CAG shows that in 43 cases, 1515.997 hectare forest land was "illegally' diverted without prior permission of the Government of India during last 10 years. Compensatory afforestation was not carried out in 70 per cent of the projects where forest land was diverted for non-forest purposes between 1997 and 2007. Only 6 per cent of the funds received from user agencies on account of cost of CA were utilised during this period. Fifty-three out of the 56 compensatory afforestation plantations raised on Jhabua land bank during the period 1997-2000 failed due to non-allotment of funds by the Government for maintenance and protection of plants, resulting in wasteful expenditure of Rs.2.04 crore. On scrutiny of the records of eight forest divisions -- Betul (North), Chhindwara (West), Damoh, Indore, Jhabua, Satna, Sheopur, and Umaria