Madhya Pradesh High Court: In a writ petition filed under Article 226 of the Constitution of India, challenging the order dated 17-01-2024 by which the petitioner’s financial powers as Sarpanch were withdrawn due to taking bribery and the same was conferred upon the Panchayat Coordinator, a single-judge bench of Vishal Dhagat, J., affirmed the impugned order and held that the “Chief Executive Officer, Zila Panchayat have power to issue orders withdrawing financial powers of Sarpanch who is found to be involved in a corruption case.”
In the instant matter, the impugned order was passed after the petitioner was caught red-handed accepting a bribe of ₹50,000/-. A criminal case under the Prevention of Corruption Act, 1988 was registered against him.
The petitioner was served with a show cause notice on 07-12-2023 under Sections 39(1)(a) and 40 of the Madhya Pradesh Panchayat Raj Avam Gram Swaraj Adhiniyam, 1993. After submitting a reply, a second notice was issued on 08-01-2024. However, according to the petitioner, the final order was passed without due consideration of his reply or any personal hearing.
The petitioner argued that the impugned order was without jurisdiction, arbitrary, and contrary to law. It was contended that mere registration of a criminal case does not justify the withdrawal of financial powers, and the order was passed without due application of mind or affording proper opportunity to the petitioner.
However, the respondents contended that the petitioner was involved in a case of corruption and misused his official position. It was argued that the action was well within the powers of the Chief Executive Officer, who acted in the interest of safeguarding public funds.
The legal framework involved in the present matter — Madhya Pradesh Panchayat (Powers and Functions of Chief Executive Officer) Rules, 1995:
- Rule 2(b): Defines the ‘Chief Executive Officer’.
- Rule 4: Empowers the CEO to supervise execution of all Panchayat activities and schemes, disburse funds, and initiate proceedings.
- Rule 4(xiii): Places a duty on the CEO to ensure against loss of Panchayat funds or property and to take preventive steps.
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Rule 4(xvi): Authorizes the CEO to address audit-related defects and irregularities.
The Court held that the Chief Executive Officer of the Zila Panchayat is vested with powers under Rule 4 of the Madhya Pradesh Panchayat (Powers and Functions of Chief Executive Officer) Rules, 1995 (1995 Rules) to take necessary steps to safeguard Panchayat funds and property. The Court noted that the Chief Executive Officer is required “to ensure against loss of money or property of any Panchayat” and to act upon audit irregularities. Thus, withdrawal of financial powers from a Sarpanch involved in a corruption case is within the scope of such duties as the action taken was only to ensure against loss of money of Panchayat.
“It is the duty of Chief Executive Officer to ensure that no loss of money or property of Panchayat is caused, therefore, Chief Executive Officer, Zila Panchayat has power to issue orders withdrawing financial powers of Sarpanch who is found to be involved in a corruption case.”
The Court dismissed the writ petition and held that there is no illegality in the action taken by the Chief Executive Officer, and the power to withdraw financial authority was exercised lawfully and in the public interest.
[Manghu Baiga v. State of M.P., Writ Petition No. 8657 of 2025, Decided on 19-05-2025]
Advocates who appeared in this case:
Shri Akhilesh Kumar Singh, Counsel for the Petitioner
Ms. Shikha Sharma, Govt. Advocate, Counsel for the Respondent/State
Shri Abhinav Shrivastava with Shri Siddharth Shrivastava, Counsel for the Respondent No. 2
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