CAG Reports slams Samajwadi Party for spending Rs 15 Crores on unemployment functions

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According to the CAG report on General and Social Sector, Akhilesh Yadav led Samajwadi Party spent more than Rs 15 cr. on public programme that was organized to distribute unemployment allowances over Rs 20 crores in their tenure. The reports were released on Thursday, May 18th, 2017. At this event, the former CM of Uttar Pradesh distributed cheques worth Rs 20.58 to the ‘unemployed’ beneficiaries.

It was also reported that these functions were held between 2012 and 2013 and Mr. Akhilesh was present in attendance. Various expenditures of the party were calculated as:

  • Rs. 8.07 cr. for sitting arrangement, refreshment and other various arrangements.
  • Rs 6.99 crore on transportation.
  • An amount of Rs 15.06 cr. was invested in organizing similar functions for handing over cheques to beneficiaries under the ‘Berozgari Bhatta Yogna’ in 69 districts. Though the legal way to provide unemployment allowance was by crediting the money in beneficiary bank accounts.

According to the rule 8.4(i) of the scheme, the payment was expected to deposit these allowances on a quarterly basis in the saving bank accounts of various beneficiaries. The accounts were meant to be opened in either nationalized banks or in the Kshetriya Gramin (local rural) banks by these beneficiaries. The beneficiaries were expected to provide the amount details on their application forms for availing the benefits of this scheme.
The scheme didn’t lay down any provisions for providing transportation, sitting arrangements and refreshments to the beneficiaries, as mentioned in the IE report.

After the power shifted from SP to BJP in UP, on April 11th, the Yogi government granted permission to Comptroller and Auditor General (CAG) and other central agencies to conduct an audit on all development authorities in the state, including the Ghaziabad development Authority (GDA).

According to PTI report, there are 29 development authorities in the state and the decision taken at a meeting of the state cabinet holds significance, especially in case of GDA audits performed by the CAG.

The decision for audit was taken during a cabinet meeting chaired by current UP CM Adityanath. Earlier on 8th Feb, 2017, Prime Minister Narendra Modi, while addressing an election rally held in Ghaziabad, targeted GDA for alleged land scams. Back then, he said that he would launch a CAG audit for all development authorities including GDA, as soon as BJP comes to power in UP. Following this, there was a tug-of-war between Centre and the former SP government, which claimed GDA generates its own resources and is completely a non-profit body.

Now that CAG reports have revealed former SP government’s shortcomings, it looks like trouble is brewing for Yadav and his company now.