Hyderabad: The Union urban development ministry has taken a serious note of the state government diverting funds released under the Jawaharlal Nehru National Urban Renewal Mission (Jnnurm). The diversion was pointed out by the Public Accounts Committee of Parliament. The PAC in its report said funds are released to urban local bodies through state governments which have to ensure that the money is not diverted by the implementing agencies. The PAC found that a satisfactory explanation and details of diversion of JNNURM funds had not been furnished.
The committee was of the view that requesting the state governments to adhere to financial principles would not be effective without a system of fixing responsibility and imposing penalties for non-compliance. It felt that the project being a Centrally-approved and sponsored initiative with the Union urban development ministry as the nodal agency, it should have overall control and regulatory authority over financial matters.
The committee has recommended the setting up of a committee for overall review and audit of successor schemes. It said factual report by the review committee should made a requirement for further release of funds. Mr Shiv Pal Singh, director of AMRUT (Atal Mission for Rejuvenation and Urban Transformation), has asked the state government for its comments on the the PAC resolution.
Asked about the issue, an official in the TS municipal administration department denied that either the state government or implementing agencies were diverting the JNUURM funds. The PAC has also recommended that the Union urban development ministry should consider withholding funds to states where elections to the urban local bodies have not been held.
