The union government has found huge irregularities in the utilization of funds allotted to Andhra Pradesh under Mahatma Gandhi National Rural Employment Guarantee Scheme this year. As a result, the centre stopped the release of second installment of funds for this financial year.
The official team from the union ministry of Rural development had recently visited Andhra Pradesh and studied the execution of works and utilisation of funds under the employment scheme. In the investigation, it was found that huge corruption was taken place in the scheme. It was came to light Andhra Pradehs government diverted the funds and misused them. The records maintained by the state government were also not in proper way.
The AP would have to get Rs 589 crore as installment this July. The union government released funds to all states except Andhra following misappropriation of the funds . The centre asked the AP government to submit a detailed report on the utilisation of funds. If failed , money will not be released.