Union Minister of State for Home Affairs Bandi Sanjay Kumar has alleged misuse of grants recommended by the 15th Finance Commission in Telangana. He has asked the Union Minister for Panchayati Raj, Rajiv Ranjan Singh, to order a special inquiry into the use of funds meant for village development.
The allegation is important because Finance Commission grants to local bodies are intended to support decentralised development and strengthen Panchayati Raj Institutions. If earmarked funds are shifted to administrative spending, the purpose of fiscal devolution to gram panchayats is weakened.
What Bandi Sanjay Kumar alleged
In a letter to media, Bandi Sanjay Kumar said that funds meant for village development were being used for staff salaries, electricity bills, routine maintenance, and other administrative expenses rather than development works. He also said that gram panchayat sarpanches had raised concern about pressure to use the funds for non-permissible purposes.
He sought a strict monitoring mechanism by the Centre so that the grants are used only for intended developmental works. He also urged disciplinary and legal action against officials responsible and asked the Congress government in Telangana to explain the alleged diversion.
Background: why Finance Commission grants matter
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