Court Flags Inaction on 2023 Ombudsman Report Alleging Misappropriation of MNREGA Funds in Haryana, Warns of Independent Investigation if Accountability Lapses Persist
In a significant judgment delivered on October 8, 2026, the Punjab and Haryana High Court (Division Bench) underscored the grave concern arising from the prolonged inaction on allegations of diversion and misappropriation of funds under the Mahatma Gandhi National Rural Employment Guarantee Act (MNREGA) scheme in Haryana. The Court's observations came in a Public Interest Litigation (PIL) filed by Ram Chander and another, highlighting the failure of authorities to act on the 2023 Ombudsman/Lokpal report that had explicitly found irregularities and directed the registration of a First Information Report (FIR).
The Court noted that despite the Ombudsman's report dating back to 2023, no FIR was registered for more than three years. It was only after the PIL was filed that the authorities registered an FIR in September 2026, and that too against a single individual, Sh. Parveen Mate, Gram Panchayat member, while officers specifically implicated in the report, including Block Development and Panchayat Officers, were left uninvestigated.
The bench, comprising Chief Justice Ashwani Kumar Mishra and Justice Rohit Kapoor, expressed serious dissatisfaction with the affidavit filed by the Deputy Commissioner of Rohtak, which relied on the inquiry report by the Sub Divisional Officer (SDO) that gave a clean chit to the accused Block Level Authorities. The Court observed that the affidavit disclosed an apparent lack of application of mind, especially since the Deputy Commissioner relied on the officer against whom allegations were made.
The Court highlighted the dangers of casual handling of financial misappropriation allegations by senior district officers, warning that such negligence could lead to a complete breakdown of accountability and justice. Emphasizing the need for prompt and serious action, the Court directed the Deputy Commissioner, Rohtak, to remain present in Court with all relevant records on the next hearing date, October 15, 2026.
Further, the Court ordered that this judgment and order be placed before the Chief Secretary of Haryana to ensure administrative oversight. The Court also warned that if the proposed actions by the State are unsatisfactory, the matter may be referred to an independent investigating agency.
The PIL also brought to light disturbing allegations that the petitioner, Ram Chander, was physically assaulted when he visited the SDO's office, underscoring the hostile environment faced by whistleblowers.
This judgment sends a strong message to the State government and district administration about the imperative to safeguard public funds, enforce transparency, and uphold the rule of law in the execution of welfare schemes like MNREGA.
Bottom Line:
Public Interest Litigation - Alleged diversion and misappropriation of MNREGA funds - Inaction on Ombudsman/Lokpal report directing registration of FIR for over three years - High Court found apparent lack of application of mind by Deputy Commissioner in relying upon officer against whom allegations were made - Directed presence of Deputy Commissioner with records and observed that matter may be referred to an independent agency for investigation if Court is not satisfied.
Statutory provision(s):
Mahatma Gandhi National Rural Employment Guarantee Act, 2005 (MNREGA Act-2005)
Ram Chander v. State of Haryana, (Punjab And Haryana)(DB) : Law Finder Doc Id # 2994750
