Minister Demands Audit of Telangana Village Funds Over Alleged Financial Deviations

Requests for Scrutiny Sent to Central and State Authorities

Union Minister of State for Home Affairs Bandi Sanjay Kumar has officially petitioned for an investigation into the management of Panchayat Raj (PR) finances across Telangana. In formal correspondence dated July 30, 2026, Kumar contacted both Union Panchayati Raj Minister Rajiv Ranjan Singh and Telangana's Rural Development Minister, D. Anasuya Seethakka. The letters call for a comprehensive audit at the state and district levels to verify if expenditures align with Central Finance Commission (CFC) mandates.

Conflict Over Spending Priorities

The demand for an inquiry follows a public disagreement regarding the use of untied grants. While CFC guidelines require these funds to be used for fundamental services like sanitation and drinking water, Kumar suggests they may have been misallocated. The Telangana Panchayat Raj and Rural Development Department has denied claims of financial irregularities, asserting that money was not shifted from infrastructure projects to cover administrative costs or staff salaries.

Local Complaints Drive Investigation Push

Kumar’s intervention stems from reports provided by elected officials in his Karimnagar constituency. Sarpanches and other local representatives flagged potential systemic lapses in how funds are distributed and utilized. To address these concerns, Kumar has suggested the following actions:

• A comparative analysis of official financial records against CFC guidelines.
• Identification of specific instances where untied grants drifted from their intended purpose.
• Implementation of corrective protocols to prevent future non-compliance.

The Minister stressed that an impartial probe is the only way to resolve the discrepancy between the state government's denials and the allegations of fund diversion brought forward by local leaders.

Source: The Hindu — National