The Centre has asked CAG to probe misuse of funds under MNREGA and other central flagship schemes by panchayati raj institutions, Union rural development minister Jairam Ramesh said on Saturday.
There have been reports of misuse of funds under the central flagship schemes and irregularities against gram panchayat mukhiyas which must be stemmed, he told reporters in Patna.
The Centre has taken the matter very seriously and asked CAG to probe the misuse of funds under the central flagship schemes by the mukhiyas, Ramesh said.
CAG will compile its report by November 2012 and will be later laid before the Parliament.
He said it was the responsibility of the state governments to prevent corruption and misuse of funds in the central flagship programmes. "The Centre has its hands tied if it wants to directly probe such allegations."
The Centre orders CBI probe only when the state government recommends it. But if the Centre intervenes directly, the states describe it as attack on the federal principles, Ramesh said.