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No diversion of funds, says TN Govt

india Updated: Jan 15, 2010 15:54 IST

Tamil Nadu government on Friday said there was no 'financial irregularity and diversion of funds' meant for infrastructure projects, under the Anaithu Grama Anna Marumalarchi Thittam (AGAMT), to DMK government's free schemes such as distribution of Colour TVs and gas stoves.

"Certain ineligible items amounting to Rs 120.98 crore were dovetailed under AGAMT in six districts," an official press release, citing media reports on the Comptroller and Auditor General report for the period ended March 31, 2008 in this regard, said.

"Certain districts had also included the value of CTV sets, cooking gas stoves and lands distributed under the two-acre scheme under the dovetailed category. There was no financial irregularity and diversion of AGAMT scheme funds," it said.

Since this was a "mere accounting excercise'', the Government had, by an order dated June 5,2008, issued instructions that such items should not be taken into account while computing the quantum of funds dovetailed under schemes into AGAMT village panchayats, it said.