The Hindu : National : Mulayam asked to explain `misuse' of grants

Online edition of India's National Newspaper
Saturday, Mar 05, 2005

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Mulayam asked to explain `misuse' of grants

By Our Legal Correspondent

NEW DELHI, MARCH. 4. The Supreme Court today asked the Uttar Pradesh Government, the Chief Minister, Mulayam Singh Yadav, to respond to allegations of misuse of grants.

A special leave petition by Mahendra Nath Rai and Sushil Kumar Singh has questioned the grant of over Rs. 34.05 crores during 2003-05 to the Chaudhary Charan Singh Degree College, Itawah, managed by the Chief Minister's brother, Shivpal Singh Yadav.

A notice has been issued to the Government, Mr. Yadav and three others on this petition which challenged an order of the Lucknow Bench of the Allahabad High Court that rejected a petition alleging gross misuse of contingency funds.

A Bench of the Chief Justice, R.C. Lahoti and Justice D.M. Dharmahikari issued the notice returnable in four weeks.

The SLP contended that sanctioning of a huge amount to one institution was not in accordance with the provisions of the Constitution, the Uttar Pradesh Contingency Fund Act 1950 and the Uttar Pradesh Contingency Fund Rules 1962. It alleged that funds had been misused for personal gains and the action of the State Government was unconstitutional and in violation of Article 267(2) of the Constitution (relating to Contingency Fund).

The High Court had dismissed the petition on December 23 last year on the ground that the money had been recouped from the Consolidated Fund and that the validity of the Act had not been challenged by the petitioners.

The SLP contended that the High Court failed to appreciate the provisions of the Constitution with regard to the disbursement of the amount from the Fund and that the authorisation by the State Legislature would not validate the unconstitutional action of the Government.

The petitioners said that the Samajwadi Party MLAs and MPs from the State had also released considerable amounts in the name of the institution from their development funds that were required to be spent in their respective constituencies only.

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