Isabella Mariam

The High Court of Andhra Pradesh Single Bench of Justice Gannamaneni Ramakrishna Prasad dismissed a writ petition challenging disciplinary proceedings initiated against personnel involved in the Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS). The court upheld the findings of the Ombudsman and the Appellate Authority, concluding that the charges of embezzlement and misconduct against the petitioners and others were conclusively proven. It directed that the disciplinary actions and recovery orders stand valid and enforceable.

The court stated that "this Writ Petition is dismissed as being devoid of any merit," reinforcing the administrative findings and affirming that the authorities followed due process in issuing the show cause notices and initiating recovery for the misappropriated funds. The judgment thereby affirmed the state authorities’ approach in dealing with alleged financial irregularities under the MGNREGS framework, finding no procedural or substantive illegality in the challenged actions.

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The writ petition was filed by two individuals working under the MGNREGS framework in Andhra Pradesh, namely Dasari Babu, Incharge Engineering Consultant, and K. Suneel Kumar, Computer Operator and Accounts Assistant. They sought to challenge disciplinary action taken against them and others on the grounds of alleged misappropriation of funds.

The disciplinary proceedings originated from a grievance petition submitted on 14 September 2022, followed by a complaint through the Spandana portal dated 19 September 2022. These complaints accused seven individuals of misconduct, misuse, and misappropriation of funds in the MGNREGS programme at Talamanchi Gram Panchayat, SPSR Nellore District.

Following the complaints, show cause notices were issued to all seven accused individuals, including the writ petitioners, on 20 February 2023. At the time, Dasari Babu was functioning as Incharge Engineering Consultant and K. Suneel Kumar as Computer Operator and Accounts Assistant. In response to the notices, all seven individuals submitted a joint explanation on 20 March 2023, denying the allegations.

An inquiry was subsequently conducted by the Ombudsman, who examined various persons and documents related to the financial transactions under scrutiny. The Ombudsman’s Award, dated 12 July 2023, formed the basis of the disciplinary actions. The Ombudsman observed that the misconduct was conclusively proven against all seven individuals. The Award included the following statement:

"The undersigned inclines not to exercise any lenient view or tone down the severity of the disciplinary provisions towards the delinquent Pos/FTEs... If the notoriously fraudulent mindset of the delinquent FTEs is compromised... other lawless in spirit will be encouraged to become lawless in practice."

The Award found that Rs.28,26,735 had been embezzled and that the petitioners and others were jointly and severally liable. The Ombudsman ordered recovery of the misappropriated amount from the individuals in proportion to their involvement as per the disciplinary guidelines for FTEs.

The petitioners subsequently filed an appeal before the Commissioner, Panchayat Raj and Rural Development (Appellate Authority). This appeal was dismissed on 13 August 2024, through File No.1/Appellate Auth/MGNREGS/2024, thereby affirming the Ombudsman’s findings.

Following the appellate decision, the Principal Secretary to the Government issued directions on 1 November 2024 to initiate disciplinary action and file counter affidavits in pending litigation. In response, the Director of Panchayat Raj and Rural Development issued instructions on 25 November 2024, directing the District Collector to take necessary action as per rules.

Consequently, the District Collector issued a fresh show cause notice to the petitioners on 7 December 2024, prompting the present writ petition. The petitioners submitted their explanation on 8 May 2025. However, the authorities did not accept it, leading to the filing of Writ Petition No.14783 of 2025.

Justice Gannamaneni Ramakrishna Prasad considered the petitioners' submissions and the findings of the authorities. Referring to the Award dated 12 July 2023, the court stated

"The charges which are framed against seven persons, which includes the two Writ Petitioners, are of serious nature and the Ombudsman had held that all the charges have been proved against the seven persons."

The court found that the Ombudsman’s conclusions were based on evidence and testimony collected during the inquiry. The observations included: "In light of the conclusively proven guilt by all the aforementioned delinquent POs/FTEs, as also in view of their submission of identical explanation matching word to word by one and all, the undersigned holds all the aforementioned POs/FTEs jointly and severally guilty, responsible and accountable behind the embezzlement of Rs.28,26,735..."

The Appellate Authority had confirmed the Ombudsman’s findings in its order dated 13 August 2024. The High Court noted: "Having considered the contents of the Award passed by the Ombudsman dated 12.07.2023 and the Order passed by the Appellate Authority dated 13.08.2024, this Court is of the considered opinion that the Writ Petitioners’ case does not merit any consideration."

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The court stated that the disciplinary process was conducted in accordance with established guidelines and that the explanations offered by the petitioners were inadequate.

The High Court concluded the judgment with the following directive: "Accordingly, this Writ Petition is dismissed as being devoid of any merit. No order as to costs."

"Interlocutory Applications, if any, stand closed in terms of this order."

Advocates Representing the Parties:

For the Petitioners: Sri S.V. Maruti Sankar, Advocate

For the Respondents: Sri P. Rajesh Kumar, Assistant Government Pleader for Panchayat Raj

Case Title: Dasari Babu & Another v. State of Andhra Pradesh & Others

Neutral Citation: APHC010292242025

Case Number: W.P. No.14783 of 2025

Bench: Justice Gannamaneni Ramakrishna Prasad