2014 (1) TMI 1958 - HC - Indian Laws

Misappropriation of fund allocated to different districts of the State of U.P. by the Central Government under the Mahatma Gandhi National Rural Employment Guarantee Act 2005 - mal-practices under the Scheme - HELD THAT - It appears that while launching the Scheme under MGNREGA effective measures have not been provided to check proliferation abuse and misappropriation of fund under the Scheme making the entire society corrupt to some extent. Needless to say that in absence of an effective supervisory method with punitive action in the event of misappropriation and abuse of fund under the Scheme the temptation to involve in corrupt practices at the lowest rug of elected representative and the bureaucracy or the government officials seems to become a routine feature - Keeping in view prima facie pervasive corruption it shall be appropriate that the Central Bureau of Investigation should be provided necessary infrastructure and constitute a wing for regular monitor of Government fund under the MGNREGA Scheme or other alike Schemes without awaiting any permission from the Central and State Governments at par with FBI of the United States of America. The spade under which the corruption is flourishing in this country requires not only immediate attention but effective tools and for that the independent agency like CBI must be given all forms of assistance with required infrastructure. The Government of India as well as the State Government must ensure to provide necessary assistance to CBI for effective and quick investigation of criminal cases assigned to it. It shall be appropriate that not only the Government of India but the State of U.P should strengthen its machinery and constitute multi-member State Quality Monitor at State and District level to monitor the utilisation of fund under MGNREGA regularly. The members of State Quality Monitor must not be persons who have been assigned duty to allocate fund under MGNREGA or ensure its utility in a particular manner. The making of State Quality Monitor an independent body may to some extent check the proliferation of fund under MGNREGA. In the meantime it shall be appropriate for the Government of India to formulate appropriate rules and regulations or issue appropriate order in pursuance to statutory mandate to check the abuse of fund under the Scheme. A writ in the nature of mandamus is issued directing the Central Bureau of Investigation to investigate the abuse and misappropriation of fund as well as the abuse of power under Mahatma Gandhi National Rural Guarantee Scheme with regard to seven districts of State of U.P namely Balrampur Gonda Mahoba Sonbhadra Sant Kabir Nagar Mirzapur and Kushinagar in the years 2007 to 2010 with appropriate action and prosecution in accordance with law - A further writ in the nature of mandamus is issued directing the Central Bureau of Investigation to hold a preliminary enquiry under Chapter IX of CBI Manual with regard to other districts of the State of U.P for the aforesaid three years relating to abuse misuse or misappropriation of fund provided by the Government of India under Mahatma Gandhi National Rural Guarantee Scheme with follow-up regular enquiry if required. Petition allowed.

Summary

Issues Involved:

1. Misappropriation of funds under the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) in seven districts of Uttar Pradesh.
2. Request for Central Bureau of Investigation (CBI) probe into the alleged misappropriation.
3. Role of State and Central Government in addressing corruption under MGNREGA.
4. Statutory provisions of MGNREGA and their implementation.
5. The effectiveness of the Economic Offences Wing in investigating the alleged corruption.
6. Measures to prevent corruption and ensure proper utilization of MGNREGA funds.

Issue-wise Detailed Analysis:

1. Misappropriation of Funds:
The judgment addresses the misappropriation of funds allocated under MGNREGA in seven districts of Uttar Pradesh, namely Balrampur, Gonda, Mahoba, Sonbhadra, Sant Kabir Nagar, Mirzapur, and Kushinagar, during the years 2007 to 2010. The material on record reveals startling facts about the collusive misappropriation of funds by elected representatives and higher bureaucracy. The report by the State Quality Monitor (SQM) and letters from the Minister of Rural Development highlight the extent of corruption, including fictitious payments and misuse of funds.

2. Request for CBI Probe:
The petitioner, a media personnel, sought a mandamus for a CBI investigation into the alleged corruption. The judgment notes that the State Government did not effectively rebut the need for a CBI inquiry. The Minister of Rural Development had requested a CBI probe due to the blatant abuse of power and misappropriation of funds, but the State Government did not act on this request.

3. Role of State and Central Government:
The judgment criticizes both the State and Central Governments for their inaction. The State Government failed to comply with the Central Government's request for a CBI investigation and did not stop the release of funds despite evidence of corruption. The Central Government, despite having the power under Section 27(2) of the MGNREGA Act, did not initiate a CBI probe, keeping the matter pending under the guise of needing State concurrence.

4. Statutory Provisions and Implementation:
The judgment discusses the statutory framework of MGNREGA, highlighting the responsibilities of the Central and State Governments, Panchayats, and local communities in implementing the Scheme. Sections 3, 4, 10, 12, 13, 14, 16, 17, 18, 19, 27, and 28 of the Act are examined, emphasizing the need for a grievance redressal mechanism and the power of the Central Government to direct investigations and stop funds if misappropriation is detected.

5. Effectiveness of Economic Offences Wing:
The investigation by the Economic Offences Wing (EOW) is deemed unsatisfactory, as it was still at an initial stage in several districts, and many involved in the corruption had not been arrested. The judgment suggests possible collusion between investigating agencies and those involved in the misappropriation.

6. Measures to Prevent Corruption:
The judgment calls for the establishment of a multi-member State Quality Monitor at the State and District levels to oversee fund utilization under MGNREGA. It suggests that the Central Government should provide effective measures to supervise the Scheme's implementation, including empowering the CBI with necessary infrastructure to monitor government funds regularly.

Conclusion:
The court allows the writ petition, directing the CBI to investigate the misappropriation of funds in the seven districts and conduct a preliminary enquiry in other districts. The State Government is instructed to assist the CBI, and a multi-member State Quality Monitor is recommended to supervise fund utilization. The judgment emphasizes the need for prompt and effective action to curb corruption and ensure the proper implementation of MGNREGA.