Prime Minister of India - Dr. Manmohan Singh

Clarification on PM's National Relief Fund

There have been some reports in the media stating that a cheque of the Prime Minister's National Relief Fund for relief to farmers in Vidarbha, has bounced reportedly due to delay in releasing funds and also mentions a state government affidavit filed in the supreme Court.

It is clarified that the Prime Minister during his visit to Vidarbha in July 2006 had, in addition to other initiatives, announced financial assistance from Prime Minister's National Relief Fund, to alleviate the suffering of debt stressed farmers of Maharashtra, Andhra Pradesh, Karnataka and Kerala, by placing an amount of Rs.50 lakh at the disposal of 31 districts, 6 of them in Vidarbha. State Govt was to utilize the fund for giving assistance to needy debt stressed farmers and their families, for expenditure in connection with health and education, especially for children. Rs 3 crores was dispersed to 6 districts of Vidarbha in July 2006 itself, and there was no delay in releasing the funds. It was a one time grant of funds of Rs.50 lakh at the disposal of the concerned District Collector.

As far as the filing of an affidavit by the State Government before the Supreme Court is concerned, it was acknowledged by the State Government in March 2007, that there was no delay on the part of the PMO to release funds, and an additional Affidavit was filed to clarify the position.

The cheque under reference was issued by the local District authorities in Maharashtara, and not honoured because of local issues, and not on account of any delay in release of funds from PMNRF. The District authorities are taking action to disburse relief in cash immediately.

In addition to Rs 3 crores for 6 districts of Vidarbha, funds to the remaining 25 districts of Andhra Pradesh, Karnataka and Kerala have also been released without any delay, amounting to Rs 12.5 crores, and the Prime Minister's announcement of this initiative, from Prime Minister's National Relief Fund, has been completed.

Instead of issuing a cheque from CM's Relief Fund, under which funds were available with District authorities, a cheque was issued under PMNRF by mistake, by district officials, even after the Rs 50 lakhs provided by PMO under PMNRF had been fully disbursed.

According to information provided by the District Collector, Yavatmal District, the concerned officer and clerks who issued the wrong cheque have been given show cause notice and necessary administrative action is being taken against them.