
Madras HC directs DVAC to probe Peravurani panchayat fund misappropriation
Justice B Pugalendhi passed the order on a petition filed by S Neelakandan, who alleged that some contractors colluded with the officials and swindled panchayat funds to the tune of Rs 1 crore without executing the works concerned.
Neelakandan said the issue was previously raised before the court in 2023 by one G Senthil Kumar, upon whose petition, the court ordered the director of the town panchayat to conduct an inquiry. Subsequently, the director initiated disciplinary proceedings against the chairman and executive officer of the town panchayat, he said, and sought a criminal investigation into the allegations.
However, one N Selvaraj, father-in-law of chairman Shanthi -- also alleged to be involved in the malpractice -- claimed in his impleading petition that Neelakandan's plea is unenforceable as a division bench had passed an interim order in the matter.
Justice Pugalendhi observed that the case pending before the division bench is only related to the disciplinary proceedings, and it would not prevent the DVAC from inquiring whether the town panchayat officials were involved in misappropriation. He passed the order, noting that the government had already granted sanction to initiate an inquiry.

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