Madhya Pradesh: Audit Detects ₹250 Crore Financial Irregularities In Panchayats

Bhopal (Madhya Pradesh): The local fund audit of the finance department has revealed financial irregularities in Panchayats. The audit uncovered a rip-off worth Rs 250 crore in 11 district Panchayats, 48 Janpad Panchayats, and 4,690 village Panchayats.

The local fund audit reviewed the accounts of the Vidisha, Khargone, Barwani, Seoni, Ujjain, Sidhi, Sagar, Damoh, Tikamgarh, Gwalior, and Morena district Panchayats.

They also sifted through the accounts of several Janpad Panchayats and Gram Panchayats. The audit brought to light an irregular payment of ₹125 crore and spending of over ₹70 crore.

It also came to light that there were no bills to justify the payment of ₹34 crore.

There were irregularities in the payment of ₹16 crore, and an amount of ₹10 crore was paid against the work for which no permission was sought. An appropriation of ₹12 lakh and a double payment of ₹16 lakh were also detected.

The Panchayats did not even recover the outstanding amount. Only three district Panchayats – Vidisha, Sagar, and Damoh – and three Janpad Panchayats, Chhindwara, Saikheda, and Khaniyadhana, obtained permission for a budget from the authorised officers.

The rest of the district Panchayats and Janpad Panchayats did not take permission for the budget. The money deposited in the bank of Panchayats was not tallied with the cash books.

The Panchayats make their earnings through taxes, by leasing ponds, renting out shops, fish farming, and from fairs.

Most of the Panchayats did not recover the outstanding amount. There were irregularities in the purchase made by Panchayats. Various items worth crores of rupees were purchased without a quotation, and payments were made.

Key findings :

₹125 crore in irregular payments detected

₹70+ crore in unjustified spending

₹34 crore paid without supporting bills

₹16 crore involved in irregular transactions

₹10 crore paid for work done sans permission

₹12 lakh misappropriated

₹16 lakh paid twice (double payment)