Lok Sabha Question No. 27 (STARRED), answered on 2020-02-04
Subject: Diversion of PMAY Funds
Ministry: RURAL DEVELOPMENT
Asked by: Arvind Dharmapuri

## GOVERNMENT OF INDIA MINISTRY OF RURAL DEVELOPMENT DEPARTMENT OF RURAL DEVELOPMENT

## LOK SABHA STARRED QUESTION NO. 27

TO BE ANSWERED ON 04.02.2020

## DIVERSION OF PMAY FUNDS

## *27. SHRI ARVIND DHARMAPURI:

Will the Minister of RURAL DEVELOPMENT be pleased to state:

- (a) whether the Government is aware that funds released under Pradhan Mantri Awaas Yojana  (PMAY)  are  diverted  for  other  purposes  and  for  various  schemes  of  the State Governments and if so, the details thereof;
- (b) the details of the funds allocated to the State of Telangana during the last five years, year-wise along with the diversion of funds noticed, if any;
- (c) whether utilisation certificates have been received from the State Government for the funds released so far and if so, the details thereof; and
- (d) the measures being taken by the Government in directing the States to adhere to the norms and guidelines issued with regard to utilisation of the funds?

## ANSWER MINISTER OF RURAL DEVELOPMENT (SHRI NARENDRA SINGH TOMAR)

(a) to (d): A statement is laid on the Table of the House.

## STATEMENT IN REPLY TO PART (a) to (d) OF LOK SABHA STARRED QUESTION NO.*27  TO  BE  ANSWERED  ON  04.02.2020  REGARDING  DIVERSION  OF  PMAY FUNDS

(a) to (d):  Funds under Pradhan Mantri Awaas Yojana-Gramin (PMAY-G) are released as per 'Framework for Implementation (FFI)' of PMAY-G. As per para 10.1 of FFI, the States / UTs shall maintain single savings bank account in a Scheduled Commercial Bank at the State level which is called State Nodal Account (SNA). The Central allocation as well as the matching State share shall be deposited in the SNA by the States. The SNA shall also be registered in AwaasSoft and with PFMS. This SNA shall be operated upon only electronically through a Fund Transfer Order (FTO), which is captured on AwaasSoft, and no other mode of withdrawal is permissible. Therefore, there is no scope of diversion of funds electronically.

In  order  to  ensure  that  the  States  adhere  to  the  provisions  of  FFI,  the  states  are  to  submit Utilisation Certificates and Audit reports which are then scrutinized by the Central Government. Further, all the PMAY-G Accounts at all levels are also open to Audit by the C&AG as well as by the Internal Audit Wing of the Ministry of Rural Development.

An amount of Rs. 190.79 Crore was released to the State of Telangana as 1 st instalment of 201617  under  PMAY-G.  No  fund  has  been  released  to  the  State  thereafter.  Neither  the  physical progress has been shown on MIS AwaasSoft nor utilisation certificates have been received from the  State  so  far.  Accordingly,  State  has  been  requested  to  surrender  the  released  fund immediately.

Under  Pradhan  Mantri  Awaas  Yojana  (Urban),  no  State/UT  has  reported  diversion  of  fund released  under  the  Scheme  for  other  purposes/  schemes.  Under  PMAY(U),  the  State  of Telangana  has  got  approval  of  1,86,786  houses  involving  Central  Assistance  of  Rs.  2,801.79 crore of which Rs. 1,120.72 crore has been released to the State Government (Rs.261.76 crore in FY 2015-16, Rs. 136.90 crore in FY 2016-17, Rs.722.06 crore in FY 2017-18) as 1st instalment. Moreover,  28,876  beneficiaries  in  the  State  of  Telangana  have  acquired  houses  by  availing housing  loans  and  availed  interest  subsidy  of  Rs.643.11  crore  under  Credit  Linked  Subsidy Scheme  (CLSS)  of  PMAY(U).The  State  Government  of  Telangana  has  submitted  utilization certificate for the entire amount of Rs.1,120.72 crore of Central Assistance released to the State.

While releasing the fund under the Scheme, the concerned States/UTs are instructed that the fund shall  be  utilized  for  the  purpose  for  which  these  are  released  and  in  accordance  with  the provisions in the scheme guidelines.

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