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Serious lapses in financial governance at the grassroots level have come to light in Uttar Pradesh’s Mainpuri District Panchayat, where a statutory audit has uncovered large-scale financial irregularities involving unauthorised bank accounts and questionable development works worth crores of rupees.
According to the 2019–20 audit report of the Panchayati Raj Department, which was recently tabled in the Legislative Council, district-level funds during the 2018–19 financial year were allegedly mismanaged through the opening of six illegal bank accounts, allowing financial transactions to be conducted outside the prescribed government framework.
Unauthorised Bank Accounts Opened Across Six Banks
The audit report states that the District Fund of the Mainpuri Panchayat is required to be operated strictly through the treasury or a government-authorised bank, as per financial rules. Contrary to these provisions, officials opened accounts in six different banks, including several nationalised banks and one scheduled bank.
Crucially, these accounts were opened without informing the Finance Department and without approval from any competent authority, a violation categorised by auditors as a grave financial irregularity.
The report warns that operating parallel bank accounts creates scope for unauthorised withdrawals, arbitrary payments, and misuse of public money, bypassing mandatory checks, audits and treasury oversight.
Although the audit explicitly recommends fixing responsibility and initiating action against the concerned officials, no concrete disciplinary or legal steps have been taken so far, raising questions over administrative accountability.
Construction Works Worth ₹52.64 Lakh Declared Suspicious
The audit also flagged seven construction works carried out by seven different contractors, for which payments totalling ₹52.64 lakh were released under questionable circumstances.
The suspicious works include:
- CC road from Rajiv Gandhi Nagar to the house of Ramesh Sharma
- CC road to the houses of Lalaram and Amar Singh in Devamai
- CC road from Sirsaganj to the house of Ashish
- CC road from Surendra’s residence to the house of Shivnath
- Laying work from Bhavat–Kurra road to village Chirhua
- Laying work from Mainpuri–Kishni road to Kurari Primary School
Under government norms, every construction project must be supported by photographs at three stages (start, mid-stage and completion), site inspection reports, and utilisation certificates. The audit found that none of these mandatory documents were submitted for the seven projects.
Due to the absence of basic verification records, all works were declared suspicious, and auditors recommended full recovery of the amount from the contractors, holding them financially liable.
₹2.64 Crore Road Projects Executed Without Authority
Another major irregularity highlighted in the report involves CC road construction projects worth ₹2.64 crore carried out across Barnahal, Karhal, Kurawali, Mainpuri, Ghiror, Kishni and Jagir development blocks.
The audit categorically states that these works fell under the jurisdiction of gram panchayats, not the district panchayat. Despite this, the district panchayat executed the projects without statutory authority or government approval.
Explanations submitted by officials to justify the works were examined during the audit and were found to be unsatisfactory and unacceptable. Consequently, auditors classified the expenditure as irregular and directed recovery of the entire amount, fixing responsibility on the officials and contractors involved.
Excess Payment of ₹1.46 Lakh Detected
The audit also detected excess payments amounting to ₹1.46 lakh in seven additional development works, including five laying works and two CC road projects.
The report details contractor-wise excess payments and has directed that the amount be recovered with interest, further underlining the seriousness of financial lapses in project execution.
Questions Over Enforcement and Accountability
Despite the audit exposing multiple layers of irregularities—from illegal banking arrangements to unauthorised construction and excess payments—effective administrative action remains conspicuously absent.
Governance experts warn that unless strict disciplinary and legal action is taken against erring officials and contractors, financial accountability at the panchayat level will remain largely symbolic.
With the audit report now placed before the Legislative Council, attention has shifted to the state government’s response. The key question remains whether accountability will finally be enforced—or whether this case will also fade into bureaucratic inertia.
