Prime Minister Narendra Modi has stopped the release of new funds under the Jal Jeevan Mission after field teams found that many households marked as having tap water connections are still not receiving regular and safe drinking water. The decision comes at a time when several states have been claiming high or even full coverage, but on-ground checks have painted a different picture.
The Jal Jeevan Mission, which began in 2019, was meant to bring clean drinking water to every rural household. Over the years, the project has already crossed spending of ₹4.33 lakh crore, which is higher than its original estimate of ₹3.6 lakh crore. Officials say the mission has built infrastructure for more than 19 crore rural homes, but field inspections between 2022 and 2024 found that about 14–16% of these reported connections are not actually supplying water on a regular basis.
Because of these findings, the Centre has imposed penalties of ₹129.27 crore on seven states for poor implementation, weak quality checks and procedural lapses. So far, ₹12.95 crore has already been recovered. Gujarat faces the highest recovery demand at over ₹120 crore, while other states such as Maharashtra, Rajasthan, Karnataka, Tripura, Assam and Tamil Nadu have also been asked to account for gaps in their systems. 
Assam is one of the 20 states and Union Territories where major discrepancies were confirmed through physical checks by senior Central Nodal Officers. After the inspections, the state submitted its action-taken report to the Centre. Officials say the data shared earlier by several states does not match the actual water supply situation on the ground.
According to a senior official, the Prime Minister has made it clear that no new funds will be released until every existing tap connection is fully functional and all pending complaints from households are addressed. The Centre’s message to the states is that installation of taps is not enough—what matters is whether water is reaching people every day.
Along with freezing funds, the government has also taken action against officials, contractors and third-party agencies involved in irregularities. Disciplinary or legal steps have been initiated in 607 cases, covering 62 public officials, 969 contractors and 153 inspection agencies. Nine FIRs have been filed so far, leading to the arrest of a former minister, ten government officials and eight contractors.
Officials involved in the review say the main problem is weak operation and maintenance at the local level. Many gram panchayats do not have the technical skills or resources to manage the water systems once they are installed. States with stronger local governance, such as Kerala, have shown higher rates of functional household tap connections.
Although Finance Minister Nirmala Sitharaman announced the extension of the Jal Jeevan Mission until 2028 in the Union Budget, sources say this extension will not translate into immediate fund release. States will have to show sustained performance, regular water flow and transparent reporting before any further money is approved.
All 32 states and Union Territories have now sent their updated compliance reports. Going forward, the Centre will link all future allocations to real-time performance on the ground, with a stronger focus on functionality rather than installation numbers.
