SC orders CBI probe into NREGA ‘scam’ in Orissa

13 May 2011

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The Supreme Court on Thursday directed the Central Bureau of Investigation to look into the alleged misappropriation of funds from the Mahatma Gandhi National Rural Employment Guarantee Scheme in 100 villages spread over six districts in Orissa during 2006-07.

Going further, the three-member bench headed by Chief Justice S H Kapadia also directed all states and the union government to file reports showing compliance to the MNREGA operational guidelines.

The court asked the centre to tell it within eight weeks the plan it proposes for states to prevent recurrence of irregularities in the scheme.

"It will be useful for concerned authorities in the central government to ponder over the entire matter and propose such directions or measures which the state government should take in order to prevent recurrence of the events that have taken place in number of states and particularly in the state of Orissa," said the bench in its order on Thursday.

In Orissa, irregularities have been detected in the districts of Kalahandi, Mayurbhanj, Rayagada, Bhawanipatna, Koraput and Malakangiri.

The bench said the central government on receipt of complaints is vested with the power to stop release of the funds to NREGA scheme and institute appropriate remedial measures for its proper implementation.

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