Tamil Nadu: Rs 100 cr of MGNREGA money recovered, but no action taken against graft

CHENNAI: Though over Rs 100 crore in misappropriated funds from the Mahatma Gandhi National Rural Employment Guarantee Act (MGNREGA) scheme has been recovered since the fiscal year 2012-2013, the authorities’ failure to take decisive action against those involved in corrupt practices has undermined the 100-day employment guarantee for rural dwellers in the state.

Government sources stated that the authorities have failed to take strong action against corrupt officials, thus allowing "syndicates" at the panchayat and block levels to exploit the scheme.

Social Audit Unit (SAU) conducted between 2012 to 2013 and 2023 to 2024 flagged irregularities and fund misappropriations totalling Rs 291 crore. The high-level committee, headed by district collectors, reviewed the audit findings but dismissed several issues raised citing a lack of evidence or clarity, and finalised that the misappropriation amounted to Rs 105.35 crore over the period, according to an official citing the clarification made by the Minister for Rural Development, I Periyasamy, a few days ago.

Minister in the statement said that the government had collected Rs 98.23 crore – 93% of Rs 105.35 crore misappropriated funds, from the persons who misappropriated the funds and taking action against those involved in corrupt practices.

Notably, the minister’s clarification followed an article published by DT Next on February 25, titled “MGNREGS funds went to those who did not work: Audit”

According to the MGNREG Act, public hearings should be held at the ward/panchayat and block levels by social auditors to present the findings of audits related to fund misappropriation and deviations. However, in violation of the Act, officials are conducting these exercises behind closed doors at the district level, potentially to cover up irregularities. “It encourages the syndicates operating at village, panchayat, and block level to go scot-free and continue their activities to exploit the scheme, besides denying employment for eligible households,” said the source.

Data available in this newspaper highlights that 855 individuals were levied fines, 299 were warned, and 11 employees (including eight in 2017-2018) were terminated for malpractice and embezzling funds from the MGNREGA scheme over the past six years. Despite these actions, only four FIRs have been filed in connection to corruption during this time.

“This demonstrates a lack of urgency from officials to combat corrupt practices, thus undermining the value of a scheme that guarantees social security for the rural poor,” a source remarked.

Another stakeholder pointed out that while the minister had provided details about the misappropriated funds and the amount recovered, no information had been disclosed regarding the disciplinary actions taken against the employees involved in irregularities. “Without strict action against these employees, such malpractices will continue. The irregularities flagged by the SAU represent only a small fraction of the total issues, as social audits are conducted in the following financial year. A concurrent audit likely to uncover more irregularities,” the stakeholder added.