Even as the Supreme Court has warned of a CBI inquiry into diversion of MGNREGS funds, the Centre has told the States that it will have the complaints investigated by the agency and funds will be withheld if its directives for corrective measures are ignored. The Rural Development Ministry, in its circular to the State governments, underlined its resolve to order a probe into complaints received from independent sources. It will...

Corruption in implementation of the Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS) in UP may be another point of tussle between the state and Central governments, already at loggerheads over various issues. After getting no exact response from the state government over repeated queries regarding the action taken against officials, responsible for financial irregularities committed in the implementation of the scheme, the Centre has warned of seeking help of the...

Just reclassified Rs 1.46 lakh crore of spending as capital investment. Finance Minister Pranab Mukherjee’s Budget for 2011-12 seems to have used a new accounting system to make a virtue of necessity. Committed to provide funds to run the Mahatma Gandhi National Rural Employment Guarantee Scheme or MGNREGS, Mukherjee has transferred the entire financial allocation for the scheme under a head that will now help him take credit for a reduced effective...

The Union ministry of rural development is thinking of referring the two recent MGNREGS-related murders in Jharkhand to the CBI after arriving at the conclusion that the job scheme has been taken over by a contractors’ mafia in the state. According to a highly placed source in the ministry, the Centre was now convinced that the Jharkhand government was not taking adequate measures to undo the wrongs in the scheme. “Since...

The visit of Union rural development secretary, B K Sinha, to inquire into the killing of MGNREGS worker Subal Mahto here at Bathua village on Sunday has not only exposed serious irregularities in the schemes but also negligence on part of officials in supervising the work. Sinha s visit seems to have been prompted after Bokaro DC Amitabh Kaushal took action against four persons including two officials in this regard. Kaushal...