Supreme Court bench directs AP to pay Rs 1,100 cr to Covid-hit

By Our Special Correspondent

State Disaster Response Fund on Covid Compensation Rs. 1,100 crore within two weeks, the Supreme Court bench directed the Andhra Pradesh government.

The Comptroller and Auditor General (CAG) has pointed out serious irregularities committed by Andhra Pradesh in diverting Rs 1,100 crore from the state calamity fund and keeping it unused for two years.

The information led to the Supreme Court ruling on Monday that states cannot divert funds meant for disaster relief to other accounts. To this extent, Telugu Desam Party member and former state legislator Palla Srinivasa Rao filed a petition in the court.

He was accused of irregularities on the basis of a letter written by the Union Minister to TDP MP K Rammohan Naidu some time ago that the state received a total of Rs.570.91 crore and Rs.324.15 crore from the Center under the National Disaster Response Fund (NDRF). State Disaster Response Fund (SDRF), which has been diverted to a different account.

MR Shah and BV Nagaratna division bench of the Supreme Court comprising Justices faulted the Jagan government for diverting money meant for distribution of ex-gratia to families of Covid-19 victims into Personal Deposit (PD) accounts for welfare funds. Schemes, especially Rythu Bharosa.

Relatives of Covid-19 victims Rs. 50,000 ex-gratia and diversion of funds by the AP government while the Supreme Court actively and continuously monitors the implementation of the October 2021 order, the petition said. SDRF to Personal Deposit Account is not only against the law of the land but defiant in nature.

Advocate Gaurav Bansal, appearing for Srinivasa Rao, argued that diversion of funds from SDRF to Personal Deposit Account is not permissible under the Disaster Management Act.

Additional Solicitor General Aishwarya Bhati, on behalf of the Centre, also said that the finance ministry had asked questions from the state on the issue. The SC bench on April 13 restrained the government from proceeding with the distribution.

Hearing the case today, the bench described diversion of funds meant for disaster relief for other purposes as a serious issue and asked the government to refund Rs 1,100 crore to the SDRF within the next two weeks.

It also asked the government to settle all the claims of the beneficiaries of the Covid-19 relief within four weeks of receiving their application. In April this year, the bench had barred the state government from using the money if the amount had already been transferred.

The petitioner cited Union Minister of State for Finance Pankaj Chaudhary's letter to TDP MP Kinjarapu Ram Mohan Naidu dated March 12, 2022 detailing the alleged diversion flagged by the Comptroller and Auditor General (CAG) in its report. On the financial position of the State for the year ending March 2020.

Government of Andhra Pradesh as central share of SDRF Rs. 324.15 crores and under National Disaster Response Fund (NDRF) Rs. 570.91 crore has been received from the Centre, a letter issued by the finance ministry said.

From these funds, Rs 1,100 crore has been transferred to the personal deposit account of the Commissioner, Directorate of Agriculture to pay input subsidy to farmers for the kharif crop as "voluntary relief", the letter said.

"In violation of the Appropriation Act, the state government has shown the expenditure for disaster relief and rehabilitation by disbursing to the personal deposit account Rs. 1,100 crore has been included in the CAG report," Rao said in the application.

"The state government has transferred funds from SDRF to personal deposit account without spending for immediate relief," the CAG flagged.

Additional Solicitor General (ASG) Aishwarya Bhati appeared on behalf of the Center and supported the application. She assured the court that she would get any information from the state regarding this issue.