SC closes PIL on fund misuse in Indira Awas Yojna in Bihar

The Supreme Court today brought the curtains down on a plea seeking CBI probe into allegations brought out in a 2011 CAG report regarding gross misuse of public funds in the implementation of Indira Awas Yojna in Bihar.
A bench comprising Chief Justice J S Khehar and Justice D Y Chandrachud took note of the stand of the Centre that the report of the Comptroller General of India has been considered by the Public Accounts Committee of Parliament.
The committee did not find anything wrong and the matter rests there, Additional Solicitor General P S Narasimha, appearing for the Centre, said adding that the government has no role in the process.

Initially, the bench observed the matter should be taken to the logical end and enquired from the law officer about the procedures being adopted after the CAG submits the report.
Then bench agreed with the Centre's stand and disposed of the PIL saying "now nothing survives in it".
Earlier in 2013, the apex court had issued notice to the the Centre and the Bihar government on the PIL filed by advocate Md Shahid Anwar.

It was alleged that there was misuse of public funds in the implementation of the scheme meant to provide houses to the poor. The PIL had 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 had 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 had 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 PIL had also referred to various issues raised by the CAG in its report on the issue.
It had said that presently, CAG does not have power to seek records from pubic bodies which accounts are being audited and the law should be changed to give more powers to the top auditing body.