Bandi Sanjay Demands Probe Into Alleged Diversion of Rs 2,293 Crore Panchayat Funds
Union Minister of State for Home Bandi Sanjay Kumar has requested a central investigation into the alleged diversion of 15th Finance Commission grants by the Telangana state government. In a letter addressed to Union Panchayat Raj Minister Rajeev Ranjan Singh, Kumar alleged that funds meant for gram panchayat development across Telangana were being redirected for administrative expenses.
According to the Union Minister, the Revanth Reddy government has been diverting funds that were originally intended to strengthen rural local bodies, improve basic infrastructure, and support local self-governance under the 73rd Amendment of the Constitution.
Under the 15th Finance Commission, Telangana was allocated a total of ₹3,023.15 crore for the period from 2020-21 to 2025-26. Kumar stated that ₹2,293.74 crore of this allocation has already been released to the state in phases, while the remaining ₹729.41 crore is still pending.
Instead of being spent on drinking water, sanitation, solid and liquid waste management, village infrastructure, and the upkeep of public assets, Kumar alleged that the released funds of ₹2,293.74 crore are being routed elsewhere. He claimed the grants are being used to pay electricity bills, staff salaries, contractor dues, and other administrative expenses.
Kumar further alleged that local sarpanches in Telangana are being pressured to utilize these funds for electricity arrears, sanitation workers’ salaries, diesel dues, and pending contractor bills without any formal written orders. He stated that this diversion has severely impacted essential village works, including drinking water projects, roads, drainage systems, streetlights, and waste management.
In his letter, the Union Minister urged the central government to order a special audit to investigate the alleged misuse. He also called for strict monitoring, the recovery of the diverted funds, and disciplinary and legal action against the officials involved in the diversion.
