SC to Andhra Pradesh Govt: Last Chance to File Response in Disaster Fund Diversion

Subsidy to Farmers Law Insider

Paridhi Arya

Published on April 29, 2022 at 15:50 IST

The Bench of Justice MR Shah and Justice BV Nagarathna gave last chance to Chief Secretary of State to file an Affidavit in the Response of a question of whether the State had diverted the amount of 1,100 crore, meant for Ex-gratia payment from State Disaster response fund for payment of subsidy to farmers.

Advocate Mahfooz A Nazki representing state argued that Finance Secretary is on leave due medical emergency so he cannot file Affidavit.

Supreme Court amazed by this submission questioned “Has he taken office with him to the hospital. Is there no person to assist in his office?” and asked Chief Secretary to file a response. Next hearing will be on May 13.

In the matter of pending COVID-19 Ex-gratia payment, former Member of the Legislative Assembly of Andhra Pradesh Palla Srinivasa Rao filed an application as a letter was written by Union Minister of State for finance to MP Kinjarapu Ram Mohan Naidu alleged that Comptroller and Auditor General has pointed out the diversion of funds in their report in year 2020 and asking to take step to correct it.

There is amount of 1,100 crore rupees diverted to pay gratuitous payment. Nazki submitted that this amount is used for drought relief and it was submitted to the Comptroller and Auditor General of India. also but could not be found. The Bench told “This document should be readily available with you.”

Rao in his application stated that this diversion is against the provision of Appropriation Act and Disaster Management Act of 2015 and it has affected 50,000 people who were not paid the amount promised as they lost their family in pandemic.

The application said, “The Respondents (States) are Duty Bound to utilize the said fund for emergency Response, relief and rehabilitation and that too in accordance with the guidelines laid down by Central Government in consultation with the National Authority…. by way of the letter dated March 12 issued by Minister of State for Finance, Government of India, it is crystal clear that state of Andhra Pradesh has acted not only in violation of Disaster Management Act, 2005 but also acted against the Provisions of Appropriation Act (sic).”

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