Jolt to Jagan; SC asks AP to return Rs 1,100 cr diverted funds

AMARAVATI: In an indictment of the YS Jaganmohan Reddy regime in Andhra Pradesh, the Supreme Court on Monday asked the state government to return Rs 1,100 crores of Covid-19 relief money that was allegedly diverted for funding its welfare schemes. The money belonged to the State Disaster Response Fund (SDRF).

The directions were given by a division bench of the apex court comprising Justices MR Shah and BV Nagarathna. The bench faulted the Jagan government saying it diverted the funds allocated for ex gratia distribution among the families of COVID-19 victims into the personal deposit (PD) accounts of beneficiaries of welfare schemes, especially Rhythu Bharosa.

Terming this as a serious matter, the SC bench directed the state government to return the Rs 1,100 crores to the SDRF within the next two weeks. It also set a deadline of four weeks from the date of application for settling all the claims of COVID-19 relief seekers.

The Supreme Court verdict follows a prolonged hearing on the petition filed by former TDP MLA Palla Srinivasa Rao. In an interim direction in April this year, it restrained the Jagan government from spending the money if it was already diverted from SDRF.

On March 12, 2022, Union minister of state for finance Pankaj Chaudhary gave a written reply to TDP MP Kinjarapu Rammohan Naidu which contained details of the alleged diversion of funds. The Comptroller and Auditor General (CAG), in its report, raised objection to the said diversion. The finance ministry's missive mentioned that the Andhra Pradesh government received Rs 324.15 crores towards Centre's share of SDRF besides another Rs 570.91 crore as part of the Centre-sponsored National Disaster Response Fund (NDRF).

The finance ministry letter stated that a total of Rs 1,100 crore funds were transferred by the state government to personal deposit account of the commissioner, directorate of agriculture. The letter said that this was meant for payment of input subsidy to farmers for kharif as a "gratuitous relief".

Petitioner Srinivasa Rao quoted this letter as the grounds for his plea against the state government's diversion of funds.