Nagaland Rural Development department clarifies fund misuse allegation

The RD director clarified that since the housing materials were provided to the beneficiaries through the vendors to construct PMAY-G houses, the RD department had in its reply to the RTI filed by NTPRADAO stated that no cash amount was given to the beneficiaries

DIMAPUR — The state Rural Development department has come out with a detailed clarification to counter the ‘financial scam’ allegation leveled against it by the recently floated Nagaland Transparency, Public Rights Advocacy and Direct Action Organisation (NTPRADAO).

The NTPRADAO recently alleged misappropriation of INR 74 core fund meant for “Housing for all 2022” under Rural Development department.

Read: NSVDBA rubbishes allegation of ‘financial scam’ in RD dept.

Director, RD department, Azenuo Pienyü in a press release said that out of the total INR 74,73,07,700 meant for the housing scheme, INR 57,33,11,700 was received against the target of FY 2016-17 and the amount was utilised as per the system of implementation stated above.

The RD director clarified that since the housing materials were provided to the beneficiaries through the vendors to construct PMAY-G houses, the RD department had in its reply to the RTI filed by NTPRADAO stated that no cash amount was given to the beneficiaries.

Considering the lack of adequate banking coverage in the state, the department engaged vendors to supply housing materials to the beneficiaries and this method of implementation was approved by the Ministry of Rural Development, the release stated.

“Accordingly, vendors were engaged to supply housing materials to the beneficiaries under PMAY-G where payments were electronically transferred to the vendors’ accounts through PFMS and not through cheque,” Pienyü said. 

But the statement was taken out of context to allege that the RD department had misused the amount, the release stated.

The balance amount of INR 17,39,96,000 was received as part of first tranche of first instalment against the target of FY 2019-20, which the Department is currently implementing, it stated.

The department also attested that out of INR 17,39,96,000 balance, an amount of INR 12,54,50,000 was utilised to assist the SECC beneficiaries by transferring the second instalment amounting to INR 88,000 into the accounts of the vendors through PFMS and that the first and third instalments amount of INR 22,000 and INR 20,000 respectively, were being transferred electronically into the accounts of the beneficiaries.

Maintaining that all necessary documents including all bank statements pertaining to the utilisation are available with the department, it stated that the question of mis-utilisation of the amount by depriving the beneficiaries of their due shares does not arise.

Moreover, as per the directive of the Union Ministry of Finance, the state has now fully adopted the DBT mode of implementation.

Bank statements of the PMAY-G State Nodal Account are available for scrutiny, it added.

It went on to state that the Rural Housing Scheme PMAY-G is implemented based on the online module of transferring fund through the Public Fund Management System (PFMS) by generating Fund Transfer Orders (FTOs).

The Public Financial Management System (PFMS) is a web-based online software application developed and implemented by the Controller General of Accounts (CGA), Department of Expenditure, Ministry of Finance, Government of India with the objective of tracking funds released under all Plan schemes of Government of India, and real time reporting of expenditure at all levels of programme implementation, the RD department informed.

This system is an online cashless transfer system where the Ministry of Finance, Government of India controls the release of funds from the SNA (State Nodal Account) direct to the beneficiary account, it added.

It further stated that based on certain deprivation parameters of the National Socio-Economic Caste Census (SECC) data of 2011, the Ministry of Rural Development (MoRD) selects the beneficiaries under PMAY-G up to the village level and not by the state department of Rural Development.

“There is no provision for the state to add more beneficiaries under SECC, apart from the auto-generated list received from the Government of India,” the department clarified.

Despite the lack of proper banking coverage in the state, the department stated that it is making all efforts for the beneficiaries to open bank accounts and avail Aadhaar cards.

Currently, the implementation of PMAY-G in the State is 100% Direct Benefit Transfer (DBT), whereby fund is directly transferred to the accounts of the beneficiaries through PFMS in three instalments, electronically from the State Nodal Account.

“While reiterating that all the necessary documents and all bank statements are available, and with the Department constantly trying to improve the implementation of schemes, such poorly researched allegations on the Department by defaming its Officers of ‘financial scam’ is unbecoming of any respected individual or organization,” the department sated.