PAC finds loopholes in implementation of key housing scheme

A parliamentary panel has found several loopholes in the implementation of a key housing scheme, 'Indira Awaas Yojana' (IAY), in selection of beneficiaries, quality of work while also expressing its displeasure over "diversion" and "misappropriation" of funds.
In its report submitted to the Lok Sabha today, the Public Accounts Committee, in its report on the Ministry of Rural Development, spelt out the need for focus on efficient and effective utilization of budgetary grants, moving away from the existing tilt towards timely-utilization of grants.
There have been "serious shorcomings" in areas such as identification and selection of beneficiaries of the scheme, construction and quality of work, financial management, and monitoring and evaluation among others.

"The committee note several cases of operation of multiple bank accounts, diversion of IAY funds towards other scheme/programmes, expenditure on inadmissible items, misappropriation and suspected cases of misappropriation, unauthorised deduction of funds on account of administrative charges," the reports states.
IAY, launched in 1985, is a flagship scheme of the Ministry of Rural Development designed to provide assistance to BPL families who are either houseless or have inadequate housing facilities.
The report noted as a "serious lapse" the fact that assessment has not been made about the actual housing shortage in 14 states even after the scheme had been ruuning for almost 30 years. It shows absence of planning and coordination with the states by the Ministry, the report said.

"What is even more disturbing for the Committee to note is that several ineligible beneficiaries were selected to reap the benefit," it said.