The audit, which was conducted by the Madhya Pradesh Local Fund Audit office for 2007-08, found a difference of about Rs 4 crore in revenue earned from sales of application forms by the MPPEB or 'Vyapam'.
The MPPEB conducts entrance and recruitment tests for admission in medical and engineering courses, and selection in certain government services, among others.
The Board was to collect about Rs 9 crore from sales of application forms for Pre-Master of Computer Application (Pre-MCA) from candidates of General and Other Backward Classes categories. It was also to collect about Rs 90 lakh from sales of application forms for PET (Pre Engineering Test), said the report. However, about Rs 4 crore was shown in the Board's ledger, said the audit report, which was accessed through the Right to Information (RTI) Act by activist Ajay Dubey.
The report cited unauthorised disposal of application forms allegedly on the directions of the then chairman of the Board.
The Board earns revenue from sale of application forms. As per rules, any documents or receipts which have money values should not be destroyed.
The MPPEB has mentioned in its records that application forms, other than those were sold to the candidates for different exams, were destroyed and sold as scrap on the direction of its former chief. However, such directive was not found during the audit, the report claimed.
The MPPEB was recently in the news for alleged corruption in conducting examinations for recruitment to various state government jobs.