NSVDBA issues clarification in response to financial misappropriation allegations by NTPRADAO

Kohima, 12 June (MTNews): In light of the recent allegations made by the Nagaland Transparency, Public Rights Advocacy and Direct Action Organization (NTPRADAO) concerning the Rural Development (RD) Department’s alleged financial misappropriation amounting to Rs 74 crores, the Nagaland State Village Development Board Association (NSVDBA) has deemed it necessary to provide a clarification.

The NSVDBA emphasized that the erstwhile Indira Awaas Yojana (IAY) underwent a restructuring process and transformed into Pradhan Mantri Awaas Yojana – Gramin (PMAY-G) in 2016. Along with this transformation, the implementation framework of the scheme was also revamped.

Under the PMAY-G, a new approach was adopted wherein funds were transferred through the Public Fund Management System (PFMS) via Fund Transfer Orders (FTOs). These funds were allocated to government-approved vendors who were responsible for supplying building materials to the beneficiaries, which also covered the transportation costs. This restructuring was undertaken to address the specific challenges faced by beneficiaries residing in remote areas, such as difficult terrains and the high cost of transportation to these villages.

The NSVDBA clarified that the allegation claiming “no amount was given to the beneficiaries under PMAY-G ” was unfounded. The beneficiaries indeed received building materials to construct their houses, NSVDBA said. “The fact that beneficiaries did not receive money directly into their accounts should not be misconstrued as misappropriation. It should be noted that this system of implementation was approved by the Ministry of Rural Development (MoRD), Government of India,” it added.

However, in order to provide more autonomy to the beneficiaries, NSVDBA stated that the decision was made to fully adopt the Direct Benefit Transfer (DBT) mode of implementation. Under this mode, it said, funds are directly transferred to the personal bank accounts of beneficiaries in three installments. The beneficiaries are expected to construct the houses up to the foundation level with the first installment, up to the lintel level with the second installment, and complete the house with the third installment. It also said that the DBT mode of implementation has been approved by the Ministry of Rural Development, and currently, an entitled amount of Rs 1,30,000/- is directly credited to each beneficiary’s account.

The NSVDBA also denied the allegations of siphoning off money meant for the beneficiaries, emphasizing that such claims are baseless and defamatory. The NSVDBA underscored that the current implementation system strictly prohibits the use of cheques for cash withdrawals, ensuring that every transaction is recorded in the Public Fund Management System (PFMS), which is consistently monitored by the Ministry of Rural Development.

Therefore, it argued that the question of “mis-utilization” as alleged by NTPRADAO is not only impossible but also unsubstantiated. The NSVDBA urged the concerned parties to engage with grassroots organizations to gain clarity rather than making baseless and malicious accusations, which only serve to create confusion among the masses.

It may be noted that NTPRADAO is a recently established organization, officially formed on 31 May 2023. The NSVDBA expressed concern regarding the motivations of the organization, questioning whether it was established with the intention of shielding individuals with personal vendettas against the Rural Development Department.