State funds are not to be looted: HC to Centre on RSBY scheme

The Delhi High Court today directed the Centre to prevent "leakage" of crores of rupees of the government due to misuse of its Rashtriya Swasthya Bima Yojna (RSBY) in Uttar Pradesh, saying "state funds are not to be looted".
Justice Manmohan also warned the Centre that contempt proceedings will be initiated against the Health Secretary if the leakage is not stopped by the next date of hearing on November 11.
"Your (central government) scheme is being misused. You can't shut your eyes. Don't allow the funds to be squandered. If you can't manage it (scheme), then withdraw it.
"Crores are getting leaked. Union of India and Insurance companies are to take action to stop the leakage pointed out by the State of Uttar Pradesh," the court said.

"Convey this to the Health Secretary. I will call him to appear before the court personally and will initiate contempt proceedings against him if leakage is not stopped by next date of hearing. State funds are not to be looted like this," Justice Manmohan said.
The order came after the UP government submitted that pursuant to the court's earlier directions it appointed a panel to conduct an inquiry/inspection into the scam and the committee found "irregularities" in the working of the scheme.

The state government also said an FIR has been lodged on March 22 against the persons responsible for issuing duplicate cards. It made the submissions in an affidavit filed before the court.

It also said that a letter highlighting issues faced by it with respect to working of the scheme has been sent to the central government.
The Centre, on its part, contended that its hands are tied and that it cannot prosecute the persons responsible as the same has to be done by the state government.
Responding to the Centre's contention, the court said "if Union of India's hands are tied, then whose hands are free? This is your scheme. Close it down if your hands are tied.