Calcutta HC confirms PMAY fraud in Bengal, orders criminal action on fund misuse

The Calcutta High Court has confirmed serious misappropriation of funds under the Pradhan Mantri Awas Yojana (PMAY) in West Bengal, specifically within the Itkhola Gram Panchayat of Canning Block 1. The court has ordered immediate criminal action against those responsible, following the state government’s acknowledgment of the irregularities. The case centers around five applicants who sought funds under the PMAY scheme in 2021 but did not receive their payments as expected. The issue first came to light when the applicants approached local Panchayat officials after months of delay.

The applicants, including Sirajul Mandal and four others, filed a case in 2023 after their repeated attempts to resolve the issue through local channels failed. Initially, they were informed by the Panchayat that their funds had not arrived or that they were not eligible for the scheme. After further inquiry, they learned that the funds intended for them had been misdirected. The petitioners requested the Calcutta High Court to investigate, which led to an independent agency being appointed to look into the matter.

The investigation revealed that, in total, eight installments intended for the five beneficiaries had been misdirected. Two of the petitioners had their first installment transferred into unrelated bank accounts. The remaining three petitioners had all three of their installments—the first, second, and third—misdirected. The investigation also provided details on the specific bank accounts where the funds were sent, confirming that they did not belong to the intended beneficiaries. This was classified as deliberate fraud by the court.

Based on the findings, Justice Ravi Kishan Kapoor, presiding over the case, instructed the state government to take swift legal action. The court has ordered the state to retrieve the bank account details of both the Block Development Officer (BDO) and the Panchayat head. The purpose is to determine the extent of their involvement in the misappropriation. The court also directed that criminal charges be filed against those involved in the fraudulent activity under the Code of Criminal Procedure (CrPC), which includes a detailed investigation of their actions.

The case has sparked widespread attention, with significant criticism directed at the local administration. BJP leaders have emphasized that this is part of a larger pattern of mismanagement in the state’s handling of central government welfare schemes. The allegations of fraud have been framed as evidence of corruption within the state administration, especially in light of the fact that the misdirected funds were meant for economically disadvantaged beneficiaries. However, the Trinamool Congress has yet to release an official response, and investigations are ongoing.

In addition to the PMAY case, the Calcutta High Court has previously dealt with similar allegations of mismanagement of welfare funds in the state. The PMAY, a central government initiative, is aimed at providing affordable housing to the poor, and any misuse of its funds not only affects beneficiaries but also undermines the credibility of the program.