Question : Diversion of PMAY Funds

(a) whether the Government is aware that funds released under Pradhan Mantri Awaas Yojana (PMAY) are diverted for other purposes and for various schemes of the State Governments and if so, the details thereof;

(b) the details of the funds allocated to the State of Telangana during the last five years, year-wise along with the diversion of funds noticed, if any;

(c) whether utilisation certificates have been received from the State Government for the funds released so far and if so, the details thereof; and

(d) the measures being taken by the Government in directing the States to adhere to the norms and guidelines issued with regard to utilisation of the funds?

Answer given by the minister

MINISTER OF RURAL DEVELOPMENT
(SHRI NARENDRA SINGH TOMAR)

(a) to (d): A statement is laid on the Table of the House.


STATEMENT IN REPLY TO PART (a) to (d) OF LOK SABHA STARRED QUESTION NO.*27 TO BE ANSWERED ON 04.02.2020 REGARDING DIVERSION OF PMAY FUNDS
(a) to (d): Funds under Pradhan Mantri Awaas Yojana-Gramin (PMAY-G) are released as per ‘Framework for Implementation (FFI)’ of PMAY-G. As per para 10.1 of FFI, the States / UTs shall maintain single savings bank account in a Scheduled Commercial Bank at the State level which is called State Nodal Account (SNA). The Central allocation as well as the matching State share shall be deposited in the SNA by the States. The SNA shall also be registered in AwaasSoft and with PFMS. This SNA shall be operated upon only electronically through a Fund Transfer Order (FTO), which is captured on AwaasSoft, and no other mode of withdrawal is permissible. Therefore, there is no scope of diversion of funds electronically.

In order to ensure that the States adhere to the provisions of FFI, the states are to submit Utilisation Certificates and Audit reports which are then scrutinized by the Central Government. Further, all the PMAY-G Accounts at all levels are also open to Audit by the C&AG as well as by the Internal Audit Wing of the Ministry of Rural Development.

An amount of Rs. 190.79 Crore was released to the State of Telangana as 1st instalment of 2016-17 under PMAY-G. No fund has been released to the State thereafter. Neither the physical progress has been shown on MIS AwaasSoft nor utilisation certificates have been received from the State so far. Accordingly, State has been requested to surrender the released fund immediately.


Under Pradhan Mantri Awaas Yojana (Urban), no State/UT has reported diversion of fund released under the Scheme for other purposes/ schemes. Under PMAY(U), the State of Telangana has got approval of 1,86,786 houses involving Central Assistance of Rs. 2,801.79 crore of which Rs. 1,120.72 crore has been released to the State Government (Rs.261.76 crore in FY 2015-16, Rs. 136.90 crore in FY 2016-17, Rs.722.06 crore in FY 2017-18) as 1st instalment. Moreover, 28,876 beneficiaries in the State of Telangana have acquired houses by availing housing loans and availed interest subsidy of Rs.643.11 crore under Credit Linked Subsidy Scheme (CLSS) of PMAY(U).The State Government of Telangana has submitted utilization certificate for the entire amount of Rs.1,120.72 crore of Central Assistance released to the State.


While releasing the fund under the Scheme, the concerned States/UTs are instructed that the fund shall be utilized for the purpose for which these are released and in accordance with the provisions in the scheme guidelines.

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