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This is an archive article published on October 7, 2013

Akhilesh rolls back curbs on use of Vidhayak Nidhi

The lifting of ban will make it possible for legislators to give money to institutions where they hold a post

Less than a year after it banned disbursement of constituency development fund — known as Vidhayak Nidhi — for works in institutions where either a legislator or his family members held a post,the Akhilesh Yadav government has removed the restriction,making it possible for legislators to now give money to institutions where they hold a post.

The Cabinet last week cleared proposals for changes in the guidelines of the Vidhayak Nidhi scheme — the state’s equivalent of MPLAD scheme.

One of the changes was that the works of no such institution where either a legislator or his/her family members hold a post in the institution or trust,which is being run for “private benefit”,will be recommended by the legislator for any works. But if the institution is working for “public welfare”,it can be recommended for works under the guidelines of the scheme,the new rule stated.

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An officer in the Rural Development Department,which is the nodal department for implementation of works from the scheme,said new changes will make most schools,colleges,NGOs run by MLAs eligible for the fund.

In November last year,the government changed the guidelines for recommending works under the scheme. According to those changes,works in no such institution (public or private), where either a legislator or his/her family members are holding a post,were to be recommended by the legislator under the scheme.

The move was apparently aimed at curbing fund misuse.

The changes also provided that if any institution run by a trust or society is working in the sectors of medical,health or education and the legislator or his family members are non-salaried post holders in the trust or society,then the Vidhan Sabha Speaker or a committee constituted by him could waive the restriction in particular cases.

Last year’s changes in the guidelines also specified that the family members of a legislator will include his parents,siblings,children,grand-children,spouse and in-laws.

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The government had also ordered that works of more than Rs 25 lakh will not be recommended for any institution from the Vidhayak Nidhi scheme under normal circumstances.

However,last week,the Cabinet also changed the rule for the cap of Rs 25 lakh.

According to the new rule,a legislator can recommend proposals for separately identifiable works in a financial year,but the estimated cost of every work should not be more than Rs 25 lakh.

The officer said as per the new rule,an MLA can recommend the total of his one year’s Vidhayak Nidhi of Rs 1.50 crore for six different works of one institution,with each work having an estimated cost not exceeding Rs 25 lakh.

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The officer said last year’s changes were made keeping in mind the recommendations made by the Lokayukta at various times for curbing the misuse of Vidhayak Nidhi scheme’s fund and the guidelines of the MPLAD.

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