Lok Sabha Question No. 2567 (UNSTARRED), answered on 2022-08-02
Subject: Corruption under MGNREGS
Ministry: RURAL DEVELOPMENT
Asked by: Mohammad Jawed, Anto  Antony, Adoor Prakash, K. Muraleedharan, A. Chellakumar, Behanan Benny

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

## LOK  SABHA

## UNSTARRED QUESTION NO. 2567 ANSWERED ON 02/08/2022

## CORRUPTION UNDER MGNREGS

## 2567.   DR. MOHAMMAD JAWED:

SHRI ANTO ANTONY:

ADV. ADOOR PRAKASH:

SHRI K. MURALEEDHARAN:

DR. A. CHELLAKUMAR:

SHRI BENNY BEHANAN:

Will the Minister of RURAL DEVELOPMENT be pleased to state:

- (a) whether misappropriation of Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS) funds has been revealed in social audits conducted in many States and if so, the details thereof, State-wise;
- (b) the details of action taken by the Government against such misappropriation of funds;
- (c) the estimation of the amount allegedly embezzled from the MGNREGS funds by bureaucrats in the country, State-wise;
- (d) the action taken by the Government to address the rising cases of corruption involving bureaucracy in the MGNREGS funds; and
- (e) the reasons behind reducing the budget for MGNREGS from Rs. 78,000 crore to Rs. 73,000 crore, despite an increase in issues like fake job cards, corruption, late uploading of muster rolls, and huge pending payments are on a rise?

## ANSWER

## MINISTER OF STATE IN THE MINISTRY OF RURAL DEVELOPMENT (SADHVI NIRANJAN JYOTI)

- (a) & (b):   State/UT-wise details of Social Audit findings on financial misappropriation and action taken by Government of States/UTs (as on 30.07.2022) is given at Annexure.

The  Ministry  has  taken  various  steps  to  strengthen  the  Social  Audit  system  under Mahatma  Gandhi  National Rural Employment  Guarantee  Scheme  (Mahatma  Gandhi NREGS) in States/UTs, some of which are given below:

- i. Auditing  Standards  for  Social  Audit  have  been  issued  and  States/UTs  have  been advised to establish independent Social Audit Units (SAU), conduct Social Audit as per  Audit  of  Scheme  Rules,  2011  and  training  of  village  resource  persons  for conducting Social Audit. States/UTs have been advised to recruit adequate manpower under SAU to ensure the rigour and quality of social audit.
- ii. For  bringing  significant  improvement  in  the  implementation  of  the  Scheme,  it  was decided to, set few pre-requisite for taking up Annual Action Plan and Labour Budget of States/UTs  for financial year 2022-23  i.e.  (i)  independent  SAU  under  an independent Director to be created (ii) all the Gram Panchayats which have not been socially audited in financial year 2019-20 to be audited and (iii) at least 50 % of the recoveries  due,  as  brought  under  Social  Audit  to  be  made.  Labour  budgets  of States/UTs have been approved keeping their performance on Social Audit.
- iii. The  States/UTs  have  also  been  asked  to  fully  comply  with  the  stipulation  of placement  of  annual  report  of  social  audit  as  vetted  by  the  State  Employment Guarantee Council before their Legislative Assembly  or such other fora, as appropriate  and  ensure  that  the  entire  staff  for  the  social  audit  is  in  place  and appropriate training has been provided. An indicative format has also been provided for placement of annual report before the State Legislative  Assembly. State Employment Guarantee Council has also been asked to review the Annual Report of Social Audit before its placement to Assembly.
- iv. Separate budget line for funds for Social Audit has been made. Fund is released to Social Audit Unit Society directly to ensure their independence.

(c)  &  (d):        The  Ministry,  under  Mahatma  Gandhi  NREGS  receives  complaints  of irregularities/corruption and embezzlement including large scale diversion of funds, under/non-payment of wages, lack of transparency etc. Since the responsibility of implementation of Mahatma Gandhi NREGS is vested with the State/UT Governments, all complaints received in the Ministry are forwarded to the concerned State/UT Governments for taking appropriate action including investigation, as per law.

Steps  have  been  taken  to  strengthen  transparency  and  accountability  which  include geo-tagging of assets, Direct Benefit Transfer (DBT), National electronic Fund Management System (NeFMS), Aadhar Based Payment System (ABPS), Software for Estimate Calculation using Rural rates for Employment (SECURE) and establishment of independent social  audit  units  and  appointment  of  Ombudspersons  in  the  States/UTs.  State  specific reviews are also undertaken from time to time. Officers of the Ministry and National Level Monitors also visit various districts to oversee the performance of Mahatma Gandhi NREGS.

(e):       In  the  current  financial  year  2022-23  the  budget  provision  at  Budget  Estimate  (BE) stage is Rs. 73,000 crore under Mahatma Gandhi NREGS.

Fund  release  to  States/UTs  is  a  continuous  process  and  Central  Government  is committed in making funds available to States/UTs for the implementation of the Scheme, keeping in view the demand for work on ground. The Ministry seeks additional funds under Mahatma Gandhi NREGS from Ministry of Finance as and when required for meeting the demand for work on the ground.

******

## Annexure referred in reply to parts (a) & (b) of Lok Sabha Unstarred Question No.2567 dated 02.08.2022

0

6

0

0

0

0

0

8

3

5

2

0

3

0

0

0

0

| State/UT-wise detail of financial misappropriation amount reported by Social Audits Units and Action Taken by Government of States/UTs (as on 30.07.2022)   | State/UT-wise detail of financial misappropriation amount reported by Social Audits Units and Action Taken by Government of States/UTs (as on 30.07.2022)   | State/UT-wise detail of financial misappropriation amount reported by Social Audits Units and Action Taken by Government of States/UTs (as on 30.07.2022)   | State/UT-wise detail of financial misappropriation amount reported by Social Audits Units and Action Taken by Government of States/UTs (as on 30.07.2022)   | State/UT-wise detail of financial misappropriation amount reported by Social Audits Units and Action Taken by Government of States/UTs (as on 30.07.2022)   | State/UT-wise detail of financial misappropriation amount reported by Social Audits Units and Action Taken by Government of States/UTs (as on 30.07.2022)   | State/UT-wise detail of financial misappropriation amount reported by Social Audits Units and Action Taken by Government of States/UTs (as on 30.07.2022)   | State/UT-wise detail of financial misappropriation amount reported by Social Audits Units and Action Taken by Government of States/UTs (as on 30.07.2022)   |
|-------------------------------------------------------------------------------------------------------------------------------------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------|
| SI. No.                                                                                                                                                     | State/UT                                                                                                                                                    | Total number of Cases Reported by SAU (in no.)                                                                                                              | Corresponding Financial Misappropriation Amount (Rs. in Lakhs)                                                                                              | Total number of decided Cases (ATR Uploaded) (in no.)                                                                                                       | No. of decided Cases for which Financial misappropriation amount needs to be recovered (in no.)                                                             | Final Recoverable Amount to be recovered (Rs. in Lakhs)                                                                                                     | Total amount recovered, so far (Rs. in Lakhs)                                                                                                               |
| 1                                                                                                                                                           | ANDHRA PRADESH                                                                                                                                              | 1,59,570                                                                                                                                                    | 33,743                                                                                                                                                      | 1,11,570                                                                                                                                                    | 10,218                                                                                                                                                      | 624                                                                                                                                                         | 624                                                                                                                                                         |
| 2                                                                                                                                                           | ARUNACHAL PRADESH                                                                                                                                           | 0                                                                                                                                                           | 0                                                                                                                                                           | 0                                                                                                                                                           | 0                                                                                                                                                           | 0                                                                                                                                                           | 0                                                                                                                                                           |
| 3                                                                                                                                                           | ASSAM                                                                                                                                                       | 206                                                                                                                                                         | 84                                                                                                                                                          | 136                                                                                                                                                         | 39                                                                                                                                                          | 6                                                                                                                                                           | 6                                                                                                                                                           |
| 4                                                                                                                                                           | BIHAR                                                                                                                                                       | 3,175                                                                                                                                                       | 1,599                                                                                                                                                       | 2,210                                                                                                                                                       | 169                                                                                                                                                         | 50                                                                                                                                                          | 50                                                                                                                                                          |
| 5                                                                                                                                                           | CHHATTISGARH                                                                                                                                                | 14,972                                                                                                                                                      | 6,887                                                                                                                                                       | 4,120                                                                                                                                                       | 590                                                                                                                                                         | 121                                                                                                                                                         | 118                                                                                                                                                         |
| 6                                                                                                                                                           | GOA                                                                                                                                                         | 0                                                                                                                                                           | 0                                                                                                                                                           | 0                                                                                                                                                           | 0                                                                                                                                                           | 0                                                                                                                                                           | 0                                                                                                                                                           |
| 7                                                                                                                                                           | GUJARAT                                                                                                                                                     | 10                                                                                                                                                          | 0                                                                                                                                                           | 10                                                                                                                                                          | 2                                                                                                                                                           | 0                                                                                                                                                           | 0                                                                                                                                                           |
| 8                                                                                                                                                           | HARYANA                                                                                                                                                     | 19                                                                                                                                                          | 7                                                                                                                                                           | 15                                                                                                                                                          | 0                                                                                                                                                           | 0                                                                                                                                                           | 0                                                                                                                                                           |
| 9                                                                                                                                                           | HIMACHAL PRADESH                                                                                                                                            | 10,289                                                                                                                                                      | 663                                                                                                                                                         | 8,824                                                                                                                                                       | 6,165                                                                                                                                                       | 96                                                                                                                                                          | 87                                                                                                                                                          |
| 10                                                                                                                                                          | JAMMU AND KASHMIR                                                                                                                                           | 338                                                                                                                                                         | 48                                                                                                                                                          | 198                                                                                                                                                         | 135                                                                                                                                                         | 12                                                                                                                                                          | 12                                                                                                                                                          |
| 11                                                                                                                                                          | JHARKHAND                                                                                                                                                   | 18,704                                                                                                                                                      | 5,170                                                                                                                                                       | 18,553                                                                                                                                                      | 6,337                                                                                                                                                       | 1,032                                                                                                                                                       | 1,012                                                                                                                                                       |
| 12                                                                                                                                                          | KARNATAKA                                                                                                                                                   | 59,290                                                                                                                                                      | 18,417                                                                                                                                                      | 38,809                                                                                                                                                      | 13,740                                                                                                                                                      | 1,827                                                                                                                                                       | 1,815                                                                                                                                                       |
| 13                                                                                                                                                          | KERALA                                                                                                                                                      | 0                                                                                                                                                           | 0                                                                                                                                                           | 0                                                                                                                                                           | 0                                                                                                                                                           | 0                                                                                                                                                           | 0                                                                                                                                                           |
| 14                                                                                                                                                          | LADAKH                                                                                                                                                      | 0                                                                                                                                                           | 0                                                                                                                                                           | 0                                                                                                                                                           | 0                                                                                                                                                           | 0                                                                                                                                                           | 0                                                                                                                                                           |
| 15                                                                                                                                                          | MADHYA PRADESH                                                                                                                                              | 2,366                                                                                                                                                       | 353                                                                                                                                                         | 1,641                                                                                                                                                       | 914                                                                                                                                                         | 116                                                                                                                                                         | 100                                                                                                                                                         |
| 16                                                                                                                                                          | MAHARASHTRA                                                                                                                                                 | 300                                                                                                                                                         | 200                                                                                                                                                         | 291                                                                                                                                                         | 55                                                                                                                                                          | 13                                                                                                                                                          | 11                                                                                                                                                          |
| 17                                                                                                                                                          | MANIPUR                                                                                                                                                     | 49                                                                                                                                                          | 9                                                                                                                                                           | 42                                                                                                                                                          | 32                                                                                                                                                          | 8                                                                                                                                                           | 8                                                                                                                                                           |
| 18                                                                                                                                                          | MEGHALAYA                                                                                                                                                   | 79                                                                                                                                                          | 9                                                                                                                                                           | 75                                                                                                                                                          | 3                                                                                                                                                           | 3                                                                                                                                                           | 3                                                                                                                                                           |
| 19                                                                                                                                                          | MIZORAM                                                                                                                                                     | 180                                                                                                                                                         | 115                                                                                                                                                         | 179                                                                                                                                                         | 45                                                                                                                                                          | 5                                                                                                                                                           | 5                                                                                                                                                           |
| 20                                                                                                                                                          | NAGALAND                                                                                                                                                    | 513                                                                                                                                                         | 165                                                                                                                                                         | 481                                                                                                                                                         | 8                                                                                                                                                           | 2                                                                                                                                                           | 2                                                                                                                                                           |
| 21                                                                                                                                                          | ODISHA                                                                                                                                                      | 1,645                                                                                                                                                       | 534                                                                                                                                                         | 1,378                                                                                                                                                       | 698                                                                                                                                                         | 115                                                                                                                                                         | 111                                                                                                                                                         |
| 22                                                                                                                                                          | PUNJAB                                                                                                                                                      | 3,592                                                                                                                                                       | 2,933                                                                                                                                                       | 2,944                                                                                                                                                       | 998                                                                                                                                                         | 112                                                                                                                                                         | 112                                                                                                                                                         |
| 23                                                                                                                                                          | RAJASTHAN                                                                                                                                                   | 8                                                                                                                                                           | 3                                                                                                                                                           | 0                                                                                                                                                           | 0                                                                                                                                                           | 0                                                                                                                                                           | 0                                                                                                                                                           |
| 24 25                                                                                                                                                       | SIKKIM                                                                                                                                                      | 537                                                                                                                                                         | 234                                                                                                                                                         | 521                                                                                                                                                         | 190                                                                                                                                                         | 47                                                                                                                                                          | 40                                                                                                                                                          |
|                                                                                                                                                             | TAMIL NADU                                                                                                                                                  | 1,59,027 40,562                                                                                                                                             | 24,622                                                                                                                                                      | 1,23,116 40,505                                                                                                                                             | 74,508                                                                                                                                                      | 6,640                                                                                                                                                       | 6,156                                                                                                                                                       |
| 26                                                                                                                                                          | TELANGANA                                                                                                                                                   |                                                                                                                                                             | 8,538                                                                                                                                                       |                                                                                                                                                             | 10,240                                                                                                                                                      | 155                                                                                                                                                         | 154                                                                                                                                                         |
| 27 TRIPURA                                                                                                                                                  | UTTAR                                                                                                                                                       | 1,250                                                                                                                                                       | 1,535                                                                                                                                                       | 1,015                                                                                                                                                       | 239                                                                                                                                                         | 129                                                                                                                                                         | 108                                                                                                                                                         |
|                                                                                                                                                             | 28 PRADESH                                                                                                                                                  | 10,888                                                                                                                                                      | 3,675                                                                                                                                                       | 5,507                                                                                                                                                       | 1,397                                                                                                                                                       | 234                                                                                                                                                         | 228                                                                                                                                                         |
| 29                                                                                                                                                          | UTTARAKHAND                                                                                                                                                 | 1,851                                                                                                                                                       | 501                                                                                                                                                         | 1,635                                                                                                                                                       | 155                                                                                                                                                         | 17                                                                                                                                                          | 17                                                                                                                                                          |
| 30                                                                                                                                                          | WEST BENGAL                                                                                                                                                 | 3,358                                                                                                                                                       | 249                                                                                                                                                         | 1,671                                                                                                                                                       | 39                                                                                                                                                          | 3                                                                                                                                                           | 3                                                                                                                                                           |
| 31                                                                                                                                                          | ANDAMAN AND NICOBAR                                                                                                                                         | 0                                                                                                                                                           | 0                                                                                                                                                           | 0                                                                                                                                                           | 0                                                                                                                                                           | 0                                                                                                                                                           | 0                                                                                                                                                           |
|                                                                                                                                                             | 32 DN HAVELI AND DD                                                                                                                                         | 0                                                                                                                                                           | 0                                                                                                                                                           | 0                                                                                                                                                           | 0                                                                                                                                                           | 0                                                                                                                                                           | 0                                                                                                                                                           |
| 33                                                                                                                                                          | LAKSHADWEEP                                                                                                                                                 | 0                                                                                                                                                           |                                                                                                                                                             | 0                                                                                                                                                           | 0                                                                                                                                                           | 0                                                                                                                                                           |                                                                                                                                                             |
|                                                                                                                                                             | 34 PUDUCHERRY Total                                                                                                                                         | 0                                                                                                                                                           | 0                                                                                                                                                           | 0 0                                                                                                                                                         | 0                                                                                                                                                           | 0                                                                                                                                                           | 0 0                                                                                                                                                         |
|                                                                                                                                                             |                                                                                                                                                             | 4,92,778                                                                                                                                                    | 1,10,296                                                                                                                                                    | 3,65,446                                                                                                                                                    | 1,26,916                                                                                                                                                    | 11,367                                                                                                                                                      | 10,780                                                                                                                                                      |

(as per NREGASoft)