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2026 Supreme(Online)(Chh) 14897

HIGH COURT OF CHHATTISGARH AT BILASPUR
Amitendra Kishore Prasad, J
PUNA RAM GAYAKWAD – Appellant
Versus
STATE OF CHHATTISGARH – Respondent
WPC No. 2048 of 2026



Advocates:
For the Appellants/Petitioners: Shiv Kumar Banjare
For the Respondents: Shobhit Mishra

When a competent inquiry committee finds evidence of misappropriation of public funds in local governance, the concerned authorities must act upon those findings and proceed in accordance with the law to ensure administrative accountability.

Headnote:(A) Public Accountability - Misappropriation of Government Funds - Once an inquiry conducted by a duly constituted authority establishes financial irregularities and misappropriation of public funds, the concerned authorities are obligated to take the matter to its logical conclusion in accordance with law. (Para 6)

Issues: Whether the respondent authorities are duty-bound to act upon the findings of an inquiry report that recommends recovery and action for embezzlement of public funds.

Table of Content
1. petitioner seeks mandamus for action on an inquiry report proving fund misappropriation by local officials. (Para 1 , 2)
2. conflict between the claim of arbitrary inaction and the state's claim of following due process. (Para 3 , 4)
3. authorities must act on proven misappropriation of public funds to ensure accountability in governance. (Para 5 , 6)
4. direction to competent authorities to initiate legal proceedings based on inquiry findings. (Para 7 , 8)

(Cause Title is taken from CIS System)

Order on Board

1. The petitioner has filed this writ petition seeking following reliefs :

“10.1 That, this Hon'ble Court may kindly be pleased to issue a writ in the nature of mandamus directing the Respondents to take immediate action on the inquiry report against respondent No.6 and 7.

10.2 That, this Hon'ble Court may kindly be pleased to issue a writ in the nature of mandamus directing the Respondents to recover the amount found embezzled/misappropriated in the inquiry proceedings from respondent No.6 and 7 in accordance with law.

10.3 That, this Hon'ble Court may kindly be pleased to issue a writ in the nature of mandamus directing the Respondents to lodge/register FIR/criminal proceedings against respondent No.6 and 7 for embezzlement and misuse of government funds.

10.4 That, this Hon'ble Court may kindly be pleased to award costs of the petition in favour of the petitioner.

10.5 That, this Hon'ble Court may kindly be pleased to grant any other relief/relief's in favour of the petitioner, which the Hon'ble Court deemed fit & just in the facts and circumstances of the case.”

2. Facts of the case, as projected in the writ petition, are that the petitioner is a permanent resident of Village Salauni, Tahsil Palari, District Balodabazar-Bhatapara (Chhattisgarh). The present case arises out of complaints made by the petitioner and other villagers against the Sarpanch and Secretary of Gram Panchayat Salauni (respondents No. 6 and 7), alleging large-scale financial irregularities and misappropriation of government funds in execution of development works. On the basis of such complaints, the competent authority, namely the Chief Executive Officer, District Panchayat, directed initiation of an inquiry into the allegations. Pursuant thereto, a three-member inquiry committee was constituted by the Chief Executive Officer, Janpad Panchayat, Palari. The inquiry team conducted spot inspection, recorded statements of concerned persons, and submitted its report after due investigation. As per the findings recorded in the inquiry report, several irregularities were found in execution of works due to non-production of technical sanction, administrative approval, and estimates by the Sarpanch and Secretary. The inquiry report specifically indicated financial irregularities and recommended recovery of an amount of Rs. 5,25,000/- from respondents No. 6 and 7. It also noted irregular handling of certain funds, including non-deposit of market contract amount. Despite such findings, no further action has been taken by the competent authorities. The petitioner, thereafter, submitted multiple representations and also approached the police authorities seeking registration of FIR against the concerned persons; however, no effective steps have been taken till date.

3. Learned counsel for the petitioner submits that a duly constituted inquiry was conducted by the competent authority, and upon such inquiry, serious financial irregularities and misappropriation of government funds have been found against respondents No. 6 and 7. It is contended that the inquiry report clearly establishes embezzlement of public funds and even recommends recovery from the erring officials. It is further submitted that despite such categorical findings, the respondent authorities have failed to take any consequential action, either for recovery of the misappropriated amount or for initiation of criminal proceedings. According to learned counsel

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