Where’s Rs 12,000-cr disaster fund, Opposition asks Punjab Govt day after PM visit

Opposition parties, including the Congress, BJP and SAD, demanded a central probe on Wednesday into the alleged misuse of Rs 12,000 crore allocated to the state under the State Disaster Response Fund (SDRF).

The issue came up a day after Prime Minister Narendra Modi, during a visit to flood-affected areas of Punjab, announced a financial package of Rs 1,600 crore and mentioned the earlier allocation of Rs 12,000 crore for disaster relief.

State BJP Chief Sunil Jakhar accused the AAP government of squandering the disaster fund received from the Centre on publicity stunts and other purposes instead of flood mitigation.

Punjab Congress chief Amrinder Singh Raja Warring claimed the state government had diverted the entire fund to other purposes, such as paying staff salaries, leaving nothing for disaster relief. He alleged the BJP was aware of the fact that Rs 12,000 crore had been misutilised. He said the PM’s aid package was insufficient and demanded a white paper on the fund’s status.

Warring also called for a criminal case against the state government for diverting the disaster relief funds. He also blamed reckless mining for altering river courses and exacerbating flooding.

The SAD also demanded a central investigation, citing contradictory statements from the state government. SAD leaders Harsimrat Kaur Badal and Daljit Singh Cheema said Punjabis deserved to know the whereabouts of the Rs 12,000 crore mentioned by the Prime Minister, which was intended for aiding flood victims.

Responding to the allegations, a senior Finance Department official clarified that the funds were not physically transferred to the state. “Instead, these are recorded as accounting entries. The money is not accumulated with the state government but remains with the Centre,” the functionary claimed. “Any withdrawal is treated as a loan, which reduces the state’s borrowing limit by the withdrawn amount. Furthermore, the state is required to pay interest on this loan,” he said.