Release of panchayat grants sparks tussle between ex, new sarpanches

Hyderabad: The release of Finance Commission grants for gram panchayats after the Dec 2025 rural local body elections has triggered a fresh tussle in Telangana — this time between former sarpanches awaiting payment of pending bills and newly-elected sarpanches seeking funds to take up development works.The Centre recently began releasing grants after elected representatives assumed office in village panchayats. However, the funds have sparked a dispute, with former sarpanches demanding that the state govt first clear their pending bills.
Telangana Sarpanchula Sangham joint action committee founder-president Survi Yadaiah Goud told TOI that bills worth about ₹530 crore for works executed during the tenure of former sarpanches were still pending. Civic works"Under pressure from the district and mandal authorities, and panchayat secretaries, many sarpanches took up works such as sanitation, payment of streetlight and water bills, drainage repairs, Bathukamma ghats, Vaikunta Dhamams, laying of approach roads to temples, and other emergency works with their own money. The district collector, mandal-level offices and panchayat secretaries used to issue show-cause notices if works were not done. The officials used to say that this was a govt matter and that funds would be released to clear their bills, even if delayed," Goud said. The previous BRS govt had not released the funds, citing the financial strain caused by the Covid-19 pandemic. Despite this, sarpanches continued to execute works, pay sanitation workers' salaries and maintain civic infrastructure until their tenure ended in Feb 2024. "I executed works for the construction of a Bathukamma ghat, a sports arena, arranged transport facilities for pregnant women, and many other civic works, in addition to paying salaries of sanitation workers. As on date, nearly Rs 12 lakh worth of my bills are pending payment from the govt. These works were executed between 2019 and Feb 2024," said Rajitha Sanaboina Sudhakar, former sarpanch of Aepur gram panchayat in Athmakur (S) mandal of Suryapet district. Another former sarpanch, Keshaboina Mallaiah Goud of Patharlapahad panchayat in Suryapet district, said he spent over ₹12 lakh on development works and was still awaiting reimbursement. Even JAC president Goud said bills worth ₹13 lakh were pending in his case. Will clear dues: SeethakkaPanchayat raj and rural development minister Seethakka said the govt would clear the dues in phases. The govt would immediately release ₹245 crore received from the Centre for 2023-24, when the tenure of former sarpanches ended, while the remaining amount would be paid later from state funds, she said.Officials said another ₹640 crore in Finance Commission grants for 2024-25 would be used to pay for works executed during that financial year. However, former sarpanches fear the Congress govt may prioritise newly-elected sarpanches for development funds, even as they continue to wait for reimbursement of expenses incurred during their tenure. Get the latest lifestyle updates on Times of India, along with Women's day wishes, messages and quotes !