A bench headed by Justice T S Thakur also issued notice to the Comptroller General of India who, in a 2011 report, had found "serious irregularities" in implementation of the central scheme meant to provide homes to poor in the state.
The PIL, filed by advocate Md Shahid Anwar, has also sought a direction to ensure "proper implementation" of the scheme as there has been allegations by the CAG that there was gross misuse of public funds by the government officials.
The PIL alleged connivance of political and executive functionaries with the businessmen in the implementation of the scheme, 75 per cent of which is funded by the Centre and 25 per cent by the state government.
Referring to the CAG report, it said, "Indira Awas Yojna (IAY) funds of Rs 325.35 crores were not deposited in separate bank accounts of IAY but were deposited in general bank account of block offices in disregard to scheme guidelines."
"The permanent IAY wait lists of shelterless families were never prepared as required under the scheme guidelines as a result of which ineligible beneficiaries having pucca houses were provided assistance of Rs 10.36 lakh, IAY houses were sanctioned to the beneficiaries ignoring their ranking in the waitlist," it said, adding that the officials did not prepare the waitlist for shelterless people.
The assistance under the scheme was provided to more than one beneficiary against a single BPL (Below Poverty Line) number resulting in irregular benefit of Rs 17.80 lakh to 767 people, it said, adding that proper accounts have also not been maintained.
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