Supreme Court Restrains AP Govt From Diverting SDRF Funds To Personal Deposit Accounts

A Bench comprising Justices M.R. Shah and B.V. Nagarathna also directed the State to not utilise the fund, if already diverted, for any other purpose than that provided under the Disaster Management Act, 2005.

"Issue notice to only the State of Andhra Pradesh, returnable on 28th April, 2022. Ms. Aishwarya Bhati accepts notice on behalf of UoI. In the meanwhile State of Andhra Pradesh is hereby restrained from transferring funds from SDRF to personal deposit account. If already transferred, the same shall not be utilised for purposes other than under the provisions of the Disaster Management Act."

The Bench was perturbed to observe that the State is diverting the disaster response funds in violation of the provisions of the Disaster Management Act and also the Appropriation Act.

Personal Deposit accounts also known as Personal Ledger accounts are established by statutory provisions or are created under law by transferring funds from the Consolidated Fund of the State for discharging liabilities of the State Government arising out of special enactments. Sometimes such accounts are opened in favour of particular Government Officers to discharge Government's liabilities for execution of projects and schemes.

Advocate, Mr. Gaurav Bansal, the petitioner-in-person, informed the Bench that even the Ministry of Finance, Government of India has questioned the act of the State Government and directed it to take corrective measures.

The Bench issued notice to the State of Andhra Pradesh, returnable on 28.04.2022. Additional Solicitor General, Ms. Aishwarya Bhati accepted notice on behalf of the Union Government.

On the intervention of the Apex Court, the National Disaster Management Authority had framed guidelines for disbursing compensation for COVID-19 deaths. According to the guidelines, the kins/family members of the persons who have lost their lives to COVID-19 are to receive Rs 50,000 ex-gratia compensation by the State Governments through the State Disaster Response Fund ("SDRF").

Case Title: Gaurav Kumar Bansal v Union of India And Ors. MA 647/2022 in W.P.(C) No. 539/2021

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