Andhra Pradesh: Pawan vows to probe diversion of central panchayat funds

Vijjayawada: Deputy Chief Minister Pawan Kalyan has assured to take up an inquiry into diversion of 14th and 15th Finance Commission grants worth ₹9,000 crore released for gram panchayats. Responding to queries raised by MLCs P. Anuradha, B. Tirumala Naidu, D. Rama Rao, Lakshmana Rao and Ram Gopal Reddy during the Question Hour in the AP Legislative Council during its 45th session here on Tuesday, the Deputy CM said the government needs some time to discuss whether an inquiry commission must be constituted or not to find more details regarding the diversion of panchayat raj funds.

He said panchayat raj institutions are yet to receive ₹998 crore released by the Centre as Finance Commission grants, which should have reached the gram panchayats by March.

Pawan Kalyan said that as per norms, the Centre releases funds to the state, which channels the same to gram panchayats. In the last three years, ₹7,518 crore had been released in eight tranches by the Centre. The state released the amounts to gram panchayats five times at a delayed schedule. Because of this, AP government had to pay a penalty of ₹11 crore to the Centre. As per norms, the state government must transfer funds to panchayats within 10 days of receipt from the Centre.

The Deputy CM disclosed that Central officials have noticed diversion of ₹2,165 crore gram panchayat funds to Discoms without the permission from the gram panchayats, which the officials have called a grave violation.

He said Central officials visited five gram panchayats in AP and shared their observations with the state government. These include:

Diversion of Central Finance Commission funds by the AP finance department to pay electricity charges of PR institutions in violation of norms, gram panchayats lacking proper electric meters, flawed calculation of electricity charges in demand notices, improper book-keeping and record management in gram panchayats, gram panchayats not getting funds under the State Finance Commission, which must be constituted as a necessary condition for release of 15th Finance Commission grants to local bodies from 2024-25, and states which fail to constitute their State Finance Commission would not get grants from the Centre.