The Punjab and Haryana High Court on October 8, 2026, severely criticised the Haryana authorities for failing to act for over three years on a report by the MGNREGA Ombudsman that found diversion and misappropriation of scheme funds, warning that it would consider referring the matter to an independent investigating agency if the action proposed by the state remains unsatisfactory.

A Division Bench of Chief Justice Ashwani Kumar Mishra and Justice Rohit Kapoor, hearing a Public Interest Litigation concerning alleged irregularities in implementing the Mahatma Gandhi National Rural Employment Guarantee Scheme in Block Sampla, District Rohtak, noted that the Ombudsman had submitted its report as far back as 2023, recording clear findings of fund diversion and misappropriation by the authorities responsible for implementing the scheme. The report also contained a direction for the registration of an FIR and a thorough investigation.

Despite these recommendations, the court observed, nothing appeared to have been done. It was only after the filing of the PIL that the authorities "woke up from their deep slumber," the bench remarked.

Three-Year Delay Despite Lokpal Direction

The court, in its order, recalled its earlier directive of September 1, 2026, which had called upon the Deputy Commissioner, Rohtak, to examine the matter and file a personal affidavit within two weeks. At that time, the court had noted that despite the Ombudsman's report and a preliminary report substantiating the fund diversion, “neither FIR has been lodged nor any action is taken in this regard.”

In response, the Deputy Commissioner filed an affidavit dated September 18, 2026. The affidavit revealed that a complaint had been received from the office of the Home Minister, Government of Haryana, in March 2023, and was referred to the Ombudsman. The Ombudsman, in turn, had directed the Chief Executive Officer, DRDA, Rohtak, to register an FIR against the Block Development and Panchayat Officer and other erring officials of Block Sampla for committing irregularities in executing the MGNREGA Act and Scheme.

Clean Chit to Officials, FIR Against One Individual

Annexed to the Deputy Commissioner's affidavit was an inquiry report by the Sub Divisional Officer (Civil), Sampla. The court found that this report “completely gives a clean chit of the concerned Block Level Authorities and exonerates them.” An FIR was lodged only against one individual, Sh. Parveen Mate, connected with Gram Panchayat Samchana, Block Sampla. The officers specifically implicated in the report of the MGNREGA Lokpal, however, were not proceeded against.

“A perusal of the record would indicate that no action was taken on the recommendations made by the MNREGA Lokpal for more than three years. It is only after the filing of the present Public Interest Litigation and the issuance of directions by this Court that an FIR came to be registered in September 2026 against one individual, while the officers specifically implicated in the report of the MNREGA Lokpal have not been proceeded against,” the bench observed.

The court further noted that the Deputy Commissioner's affidavit “basically relies upon the same Officer against whom the allegations were made,” and found “an apparent lack of application of mind” in the affidavit.

Court Warns of Independent Probe, Directs DC to Appear

The court expressed deep concern over the manner in which the senior-most officers of the District Administration were handling allegations of financial misappropriation. “If matters involving allegations of financial misappropriation are dealt with in such a manner by the senior-most officers of the District Administration, there is every likelihood that such instances would go unattended and ultimately result in no meaningful action being taken,” the bench stated.

The court said the state would “do well to sensitize its officers to deal with such matters with the seriousness and promptitude they warrant.”

Adding to the gravity of the situation, the petitioners filed an application stating that petitioner No. 1, Ram Chander, aged about 72 years, was physically assaulted when he visited the office of the Sub Divisional Officer. A photograph purportedly supporting this allegation was annexed to the application.

The court directed that its order be placed immediately before the Chief Secretary to the Government of Haryana, who shall depute the Deputy Commissioner, Rohtak, to remain present in court along with relevant records on the next date of hearing. In case the court is not satisfied with the proposed action to be taken by the respondents, it would consider referring the matter to an independent agency for investigation.

The matter is listed for further hearing on October 15, 2026.