This is an unstarred question (number 1566) answered on 09.12.2025, addressed to the Minister of Panchayati Raj by DR. Gumma Thanuja Rani, regarding the diversion of Panchayati Raj funds in Andhra Pradesh. The questions asked whether the government is aware that Rs. 500 crore in Panchayati Raj funds and Rs. 1,120 crore from the 15th Finance Commission have not been deposited into local body accounts in Andhra Pradesh; whether the Ministry proposes to investigate this diversion and ensure restoration of funds; whether the Government has noted the reported withdrawal of cheque signing powers from Sarpanches without due process and security from Zilla Parishad Chairpersons; and if so, the steps being taken to uphold constitutional protections under the 73rd Amendment?
The Minister of Panchayati Raj (Shri Rajiv Ranjan Singh Alias Lalan Singh) stated that no such report has been received by the Ministry of Panchayati Raj. However, as per the Grant Transfer Certificate (GTC) submitted by the State Government of Andhra Pradesh, Rs. 1121.20 Crores released to State for the 2nd Installment of 15th FC grants for FY 2024-25 (both Tied and Untied) were deposited into the respective Bank Accounts of Rural Local Bodies along with the penal interest of a total of Rs. 55.31 Crores for the delayed period of transfer.
Additionally, Panchayat, being a "Local Government", is a State subject and part of the State List of the Seventh Schedule of the Constitution of India. Panchayats are set up and operate through the respective State Panchayati Raj Acts, which may vary from State to State, subject to the provisions of the Constitution. Further, no such communication regarding the withdrawal of cheque signing powers from Sarpanches has been received by this Ministry from the State.
Key Entities Referenced
Ministry of Panchayati Raj: The central ministry responsible for Panchayati Raj institutions and related matters.
Andhra Pradesh: The state where the alleged diversion of Panchayati Raj funds occurred.
15th Finance Commission: The Finance Commission whose funds are alleged to have been diverted.
73rd Amendment: Constitutional amendment related to Panchayati Raj Institutions and local governance.
GOVERNMENT OF INDIA
MINISTRYOF PANCHAYATIRAJ
LOK SABHA
UNSTARREDQUESTION NO. 1566
ANSWEREDON 09.12.2025
DIVERSION OFPANCHAYATI RAJ FUNDS IN ANDHRAPRADESH
1566.DR. GUMMATHANUJARANI
Will the Minister of PANCHAYATIRAJ be pleased to state:
(a) whether the Government is aware of reports that Rs. 500 crore in Panchayati Raj funds
and Rs. 1,120 crore from the 15th Finance Commission have not been deposited into local
bodyaccountsinAndhra Pradesh,if so, the reasons therefor;
(b) whetherthe Ministryproposes toinvestigatethisdiversion andensure restoration offunds,
if so, the detailsthereof;
(c) whether the Government has noted the reported withdrawal of cheque signing powers
from Sarpancheswithout due process and security from ZillaParishadChairpersons; and
(d) if so, the steps being taken to uphold constitutional protections under the 73rd
Amendment?
ANSWER
THE MINISTER OF PANCHAYATI RAJ
(SHRIRAJIVRANJAN SINGH ALIAS LALAN SINGH)
(a) & (b): No, Sir. No such report has been received by the Ministry of Panchayati Raj.
However, as per the Grant Transfer Certificate (GTC) submitted by the State Government of
Andhra Pradesh, Rs. 1121.20 Crores released to State for the 2ndInstallment of 15thFC grants
for FY2024-25 (both Tied and Untied) were deposited into the respective Bank Accounts of
Rural Local Bodiesalong with the penal interest of a total of Rs. 55.31Crores for the delayed
periodof transfer.
(c) &(d): Panchayat, being “Local Government”, is a State subject and part of the State List
of the Seventh Schedule of the Constitution of India. Panchayats are set up and operate
through the respective StatePanchayati Raj Acts, which may varyfrom StatetoState, subject
to the provisions of the Constitution. Further, no such communication regarding the
withdrawal of cheque signing powers from Sarpanches has been received by this Ministry
from the State.
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