Telangana PR&RD Department terms claims of diverting grants for electricity bills and salaries as “factually incorrect.”
Statement issued in response to allegations made by Union Minister of State for Home Affairs Bandi Sanjay.
Department clarifies utilisation of funds strictly for intended development works in panchayats and rural areas.
Telangana Panchayat Raj Department Rejects Allegations of Diverting 15th Finance Commission Funds
The 15th Finance Commission grants are provided by the Centre to strengthen panchayat-level institutions and support basic services, infrastructure development, and capacity building in rural areas.
Summary
The Telangana Panchayat Raj and Rural Development (PR&RD) Department has strongly denied allegations that the state government diverted 15th Finance Commission grants, meant for local development works, to clear electricity bills and staff salaries.
In an official statement issued on Monday (July 20, 2026), Commissioner of PR&RD D. Divya described the claims as “factually incorrect” and emphasised that the funds have been utilised strictly as per guidelines for rural infrastructure and development projects. The clarification comes in direct response to remarks by Union Minister of State for Home Affairs Bandi Sanjay, who had accused the Telangana government of misusing the central grants.
The 15th Finance Commission grants are provided by the Centre to strengthen panchayat-level institutions and support basic services, infrastructure development, and capacity building in rural areas. The department asserted that proper utilisation certificates and audits are maintained, and there has been no diversion of these funds for non-development purposes such as salaries or utility bills.
This denial highlights the ongoing political tussle between the Congress-led Telangana government and the BJP. Bandi Sanjay’s allegations had raised concerns over fiscal discipline and the effective use of central funds meant for grassroots development. The PR&RD Department’s swift rebuttal aims to counter any narrative of financial mismanagement and reassure both the public and the Centre about transparent fund utilisation.
The controversy emerges at a time when states across India are under scrutiny regarding the implementation of centrally sponsored schemes and Finance Commission recommendations. Telangana officials maintained that all expenditures are duly accounted for and aligned with the commission’s objectives of empowering local self-governments.
Further details on the exact utilisation patterns and audit reports are expected to be shared if the matter escalates. The department has urged all stakeholders to rely on verified official information rather than unverified political claims.
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