Centre warns of CBI probe into MGNREGS funds diversion

Even as the Supreme Court has warned of a CBI inquiry into diversion of MGNREGS funds, the Centre has told the States that it will have the complaints investigated by the agency and funds will be withheld if its directives for corrective measures are ignored.

The Rural Development Ministry, in its circular to the State governments, underlined its resolve to order a probe into complaints received from independent sources. It will wait for couple of weeks for the States to respond to the reports.

In case the action of a State government is not satisfactory to the Ministry, the case will be handed over to the CBI where a criminal intent is

prima facie established; in case of system failure or non-criminal lapse, a team of officers of the Ministry will go into the issue. The circular has asked the State governments to transfer the officials concerned pending CBI inquiry. Funds under the Mahatma Gandhi National Rural Employment Guarantee Scheme would be stopped if the States fail to comply with this order.

Funds will be stopped

In case of an enquiry by a team of officers, funds will be stopped on receipt of its report and the State government concerned will be given time to take corrective measures to the satisfaction of the Centre. Only thereafter will the funds be released.