Fund transfer out of Andhra SDRF: SC asks CAG to examine govt reply

Hearing a plea challenging transfer of funds from the State Disaster Response Force, the Supreme Court had earlier issued notice to the Andhra Pradesh government, calling it a very serious issue.
Supreme Court of India: SC asks CAG to examine AP govt's reply on fund transfer from SDRF to personal accounts
Supreme Court of India: SC asks CAG to examine AP govt's reply on fund transfer from SDRF to personal accounts
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The Supreme Court has directed the Comptroller and Auditor General (CAG) to examine the reply filed by the Andhra Pradesh government on a plea challenging the alleged transfer of funds from the State Disaster Response Force (SDRF) to personal deposit accounts. A bench of justices MR Shah and BV Nagarathna asked the national auditor to submit a report in four weeks.

“Let the counter filed on behalf of the State of Andhra Pradesh be considered by the office of the Comptroller and Auditor General of India and submit a report before this court within a period of four weeks,” the bench said. The top court has now posted the matter for hearing on July 11. The top court had earlier granted the last opportunity to the Andhra government to file its reply to the plea.

Advocate Gaurav Bansal, appearing for petitioner Palla Srinivasa Rao, had alleged that Andhra Pradesh has diverted funds from SDRF to personal deposit accounts which is not permissible under the Disaster Management Act. He had submitted that the state government is illegally utilising the funds of the State Disaster Response Fund for purposes other than specified under Section 46 (2) of the Disaster Management Act, 2005.

''When the court is actively and continuously monitoring the implementation of its order dealing with the issue of disbursing of ex-gratia assistance of Rs 50,000 to next of kin of those died due to COVID-19 ... the act of Andhra Pradesh whereby the State is diverting the State Disaster Response Fund to personal deposit account is not only against the law of the land but is also contemptuous is nature," the plea had submitted.

Personal Deposit Accounts, or Personal Ledger Accounts, are established under statutory provisions of the government or created under any law by transferring funds from the Consolidated Fund of the state for discharging liabilities of the state government arising out of special enactments. Such accounts may also be opened in favour of specified government officers, by transferring funds from the Consolidated Fund of the state, for discharging the liabilities of the state government in respect of the execution of various projects, schemes etc.

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