Minerals are finite and non-renewable, and their exploitation is guided by long term national goals, perspectives, and global economic scenario. The lucrative demand for minerals has led to illegal mining in the recent past, especially in quarrying of minor minerals. Considering the effects of mining activities on local people, Government of India made a provision for establishment of District Mineral Foundation Trusts (DMFTs), and accordingly the Government of Chhattisgarh established (December 2015) DMFTs in all 27 districts of Chhattisgarh with the objective of safeguarding the interest and benefits of persons and areas affected by mining related operations. The performance audit was conducted to ascertain whether the State Government has developed a robust mechanism to prevent, detect and curb illegal mining activities and extending due benefits to areas and persons affected by mining or mining related operations as anticipated from establishment of DMFTs. [2]