The special IAY was allotted in 2014-15 to people whose houses had been damaged in cyclone Phailin which hit the district on October 12, 2013.
The work orders to construct houses at Rohigaon village were cancelled as the district administration found in an inquiry that 13 of 37 beneficiaries in the panchayat were ineligible to get the benefits.
"We have ordered cancellation of the work orders of all ineligible beneficiaries," Ganjam district Collector Prem Chandra Chaudhary said.
"We will carry out the administration's order and issue a notice on cancellation of the work orders. The beneficiaries will be asked to return the amount paid to them," BDO Sashank Das said.
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