CAMPA Funds Diverted To Buy iPhones, Laptops In Uttarakhand, Reports CAG; Supreme Court Seeks State Chief Secretary's Affidavit

Taking serious view of alleged misutilization of CAMPA (Compensatory Afforestation Fund Management and Planning Authority) funds, which are meant for improving the green cover across the country, the Supreme Court today called on the Chief Secretary of Uttarakhand to explain why said funds were utilized for inadmissible purposes (including purchase of iPhones, laptops, etc.).

"The CAMPA fund is to be utilized for increasing the green cover. Utilization of the same for non-admissible activities and not depositing the interest as per the Act with the SCAF is a matter of serious concern. We therefore direct the Chief Secretary of the State to file an affidavit on these aspects by the next date", the Court said.

A bench of Justices BR Gavai and AG Masih passed the order, taking note of a news report brought to its notice by Amicus Curiae K Parmeswar, as per which a report by the Comptroller and Auditor General of India (CAG) had revealed that Uttarakhand forest authorities diverted funds meant for compensatory afforestation to the purchase of iPhones, laptops, fridges and coolers; renovation of buildings; court cases, etc.

Perusing the report, the bench noted in its order:

"In the said report, the CAG has pointed out various irregularities in the utilization of CAMPA funds. It points out that a huge amount is spent in inadmissible manner on [...] renovation of existing buildings, expenses on personage, visits, court cases, purchases of iPhones, laptops, fridges, coolers, etc...the report further points out that though as per Section 4(5) and 4(6) of Compensatory Afforestation Funds Act, the state had to deposit interest under balance available under state compensatory afforestation funds...scrutiny of records of state authority show that the state government did not discharge the interest liability of Rs.275.34 crores for the period between 2019-20 to 2021-22. It is stated that even though the state authority had requested state government for [...] from time to time, the said has not been done. The report further shows that the government has accepted the said fact and stated that in July 2023, the interest liability of Rs.150 crores has been deposited..."

Calling for the State Chief Secretary's affidavit, Justice Gavai also orally told counsels representing Uttarakhand that if no satisfactory answer is received by March 19, the Chief Secretary will be summoned on the next day itself.

Reportedly, the CAG report (for the period 2019-2022) highlighted that after receipt of CAMPA funds, compensatory afforestation had to be done within a year (or two growing seasons). However, in many cases, the same was done after about 8 yrs of getting final clearance and the delay led to cost escalation to the tune of crores of rupees.

Among other things, it also mentioned that the Uttarakhand government did not discharge interest liability of Rs. 275 crores (approx.) from 2019-20 to 2021-22 despite requests from CAMPA.

Case Title: IN RE : T.N. GODAVARMAN THIRUMULPAD Versus UNION OF INDIA AND ORS., W.P.(C) No. 202/1995