Partap Bajwa writes to Union minister Shivraj Singh Chauhan, seeks CAG inquiry into ’embezzlement’ of rural development fund in Punjab

As per the recommendations of the 15th Finance Commission, Punjab was allotted Rs 4,534.34 crore to the Rural Development and Panchayat Department for distribution in the ratio of 7:2:1 among gram panchayats (Rs 3,174.02 crore), panchayat samitis (Rs 906.91 crore), and zila parishads (Rs 453.42 crore).

The funds are allocated to the Panchayati Raj institutions (PRIs) through a district-wise procedure, which involves the release of funds on the e-Gram Swaraj portal using the dongles of two registered authorities: zila parishad: additional deputy commissioner (development) and chairman; block samiti: block development and panchayat officer and chairman, panchayat samiti; gram panchayat: BDPO and sarpanch.

“I regret to inform you that a serious case of embezzlement amounting to Rs 1,80,87,591 has come to my notice. The funds were allegedly paid to M/s. Ranjit Tile Industries, owned by Mr. Kandhara Singh, and credited to their account with HDFC Bank in 11 installments from 16.07.2024 to 27.08.2024,” Bajwa said in the letter.

“According to the report submitted by the Inquiry Committee headed by the Divisional Deputy Director, Rural Development & Panchayats, Jalandhar, and the District Development & Panchayat Officer, Bathinda (copy attached), it was found that the amount in question was released using the Digital Signature Certificate (DSC) of the Sarpanch, Gram Panchayat, Basti Bhanewali (Smt. Jaswinder Kaur) and the Sarpanch, Gram Panchayat, Kamal Wala. Additionally, telephone numbers used for obtaining OTPs were found to be linked to this fraud,” Bajwa added.

He further stated that an FIR dated December 13, 2024, was registered. “However, it is surprising and concerning that the names of the persons involved in this fraud are missing. A copy of the FIR is also attached herewith. In this FIR, there is no mention of Kirandeep Kaur, Sarpanch, Gram Panchayat, Kamal Wala, who impersonated BDPO Kirandeep Kaur (who left the charge six months before the release of amounts), nor the proprietor of M/s. Ranjit Tile Industries, Mr. Kandhara Singh,” said Bajwa.

He added that the registration of the FIR was an attempt to obscure the truth deliberately. “Given the gravity of the situation and recognising this incident as just the tip of the iceberg, I urgently call for an independent inquiry into the utilisation of grants released to the Panchayati Raj Institutions (PRIs) in Punjab from 2022 to 2024. This investigation should be conducted by a team appointed by the Comptroller & Auditor General of India to ensure full transparency and accountability. It is crucial to scrutinise the use of these grants and implement corrective measures to prevent future occurrences,” he said.

Bajwa said this step will address the current misuse of funds and ameliorate the condition of farmers struggling with debts.