``There has been mismanagement of the state contingency fund during the period,'' the CAG said in its 1996-97 report submitted to the state government recently.

It said ``a huge amount of Rs 3.38 crore'' was withdrawn from the ``state contingency funds'' during 1995-96 to meet various expenses made on items and on upkeep of Raj Bhawans at Lucknow and Nainital.

The funds were specifically drawn for `billiards room', `blue room', `boat house', `swimming pool' and other construction works from the state contingency funds in gross violation of the rules in such cases, the report said.

An amount of Rs 2.50 lakh was sanctioned for sending Kumudesh Bhandari, wife of Romesh Bhandari, for medical treatment abroad, though there was no suchprovision under the rules, it said.

Rules were relaxed to allow Bhandari to travel abroad for treatment of ``thyroid gland'' though the ailment did not figure in the schedule of diseases meant for sending a patient abroad, the CAG said.

The expenses on air travel, which alone accounted for Rs 80,000 were not permissible under the rules, it said.

Similarly Rs 17.13 lakh was withdrawn for purchasing a car, a gypsy and a bullet proof vehicle for the Governor, the report said adding it was a gross irregularity.

A sum of Rs 1.23 crore was drawn during 1995-96 against Rs 21.28 lakh annually meant for furnishing and tour purposes. Expenditures were also made on setting up fountains, providing fire detection and alarm system, the report pointed out.