KOCHI: The Kerala High Court has come down heavily on the state government for failing to maintain accurate figures regarding the availability and utilisation of the State Disaster Response Fund (SDRF).
When a case initiated suo motu regarding the Wayanad landslides came up for hearing, the court said: “If the state government is not able to give a statement regarding the fund, even an approximate figure, there is no point in having the discussion saying, ‘we have not got this money... we don’t have the funds’. The Wayanad landslide happened in July and still there is no clarity. Every day in the news, we see claims that ‘Centre is not disbursing funds’, and this blame game continues.”
A division bench comprising Justice A K Jayasankaran Nambiar and Justice Muhammed Nias C P said the blame game is violating the dignity of people of the state, especially people of Wayanad.
The state government argued that Rs 219 crore was needed immediately for disaster relief. However, the court questioned the basis of this claim, observing that the government was unaware of the actual status of the Rs 677 crore reportedly available in the SDRF.
“If you don’t know how much of the Rs 677 crore is available for spending, how can you demand an additional Rs 219 crore,” the court asked.
The finance officer of SDRF, who was present in the court, informed that Rs 782.98 crore was available in the SDRF, including the state’s share of Rs 97 crore. Of this, Rs 95 crore was spent between April 1, 2024, and October 1, 2024. An amount of Rs 677 crore is available in the account now. The court emphasised the urgent need for an accurate financial reconciliation.
“You have Rs 677 crore in your account, but you don’t know how much can be spent. What prior commitments are holding you back? Where is the reconciliation statement? Its absence is symptomatic of systemic issues,” the court said.
“If the state has a utilisation certificate, will there be any difficulty in telling us the correct opening balance of the day,” the HC asked.
Concerned over lack of regular audits, HC directs state to present detailed fin report
“If your accounts are perfect, you will have a correct picture of the financial position,” the court stated.
The court said it wants a stop to the blame game going on either side. It is an affront to the dignity of the people in the state, including the victims of the landslides, it said.
“You can have all the discussion you want for political gain. When it comes to the needs of the people, we need to ensure that the amount is spent properly,” said the court.
“If you do not have the figures, don’t make the statements that ‘we don’t have funds for rehabilitation’. Who you are trying to fool here?” asked the bench.
“The state government is saying that the Centre is not releasing the funds. At the same time, the Union government claims that they have released the fund. Then the discussion escalates. But, the state government does not have the figures with it,” the court said.
The court raised concerns over the lack of regular audits. When asked about auditing practices, the finance officer claimed to have been in charge for only 12 days.
“Auditing does not depend on the presence or absence of a particular accounting officer. It is a systemic requirement. How frequently are accounts audited? Show us the last audit report,” said the court.
The court pointed out that what the Union government is saying is very plain and simple. There are certain funds that are released. Unless you show the reconciliation of how that has been spent, they cannot release the balance. There is justification for that, it said.
The court concluded by directing the state government to present comprehensive financial details, including audit reports and a reconciliation statement, to ensure efficient disaster relief and rehabilitation efforts, on Thursday.