{"id":349348,"date":"2025-06-02T14:30:55","date_gmt":"2025-06-02T09:00:55","guid":{"rendered":"https:\/\/www.scconline.com\/blog\/?p=349348"},"modified":"2025-06-06T16:08:36","modified_gmt":"2025-06-06T10:38:36","slug":"chief-executive-officer-zila-panchayat-can-withdraw-financial-powers-of-sarpanch-facing-corruption-charges-mp-high-court-scc-times","status":"publish","type":"post","link":"https:\/\/www.scconline.com\/blog\/post\/2025\/06\/02\/chief-executive-officer-zila-panchayat-can-withdraw-financial-powers-of-sarpanch-facing-corruption-charges-mp-high-court-scc-times\/","title":{"rendered":"Chief Executive Officer, Zila Panchayat, can withdraw Financial Powers of Sarpanch facing corruption charges: MP High Court"},"content":{"rendered":"<style>\n.animate-charcter{background-image: linear-gradient(-225deg, #231557 0%, #44107a 29%, #ff1361 67%, #fff800 100%); background-size: 200% auto; -webkit-background-clip: text; -webkit-text-fill-color: transparent; animation: textclip 0s linear infinite;}<br \/>\n@keyframes textclip {to {background-position: 200% center;}}<br \/>\n<\/style>\n<div style=\"text-align: justify; line-height: 150%;\">\n<p style=\"margin-bottom: 3%;\"><span style=\"font-weight: bold;\">Madhya Pradesh High Court:<\/span> In a writ petition filed under Article <a href=\"https:\/\/www.scconline.com\/DocumentLink.aspx?q=JTXT-0001574969\" target=\"_blank\" rel=\"noopener\">226<\/a> of the <a href=\"https:\/\/www.scconline.com\/DocumentLink.aspx?q=JTXT-0002726967\" target=\"_blank\" rel=\"noopener\">Constitution of India<\/a>, challenging the order dated 17-01-2024 by which the petitioner\u2019s financial powers as Sarpanch were withdrawn due to taking bribery and the same was conferred upon the Panchayat Coordinator, a single-judge bench of Vishal Dhagat, J., affirmed the impugned order and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 <span style=\"font-weight: bold;\">\u201cChief Executive Officer, Zila Panchayat have power to issue orders withdrawing financial powers of Sarpanch who is found to be involved in a corruption case.\u201d<\/span><\/p>\n<p style=\"margin-bottom: 3%;\">In the instant matter, the impugned order was passed after the petitioner was caught red-handed accepting a bribe of \u20b950,000\/-. A criminal case under the <a href=\"https:\/\/www.scconline.com\/DocumentLink.aspx?q=JTXT-0002825997\" target=\"_blank\" rel=\"noopener\">Prevention of Corruption Act, 1988<\/a> was registered against him.<\/p>\n<p style=\"margin-bottom: 3%;\">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.<\/p>\n<p style=\"margin-bottom: 3%;\">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.<\/p>\n<p style=\"margin-bottom: 3%;\">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.<\/p>\n<p>The legal framework involved in the present matter \u2014 Madhya Pradesh Panchayat (Powers and Functions of Chief Executive Officer) Rules, 1995:<\/p>\n<ul style=\"list-style-type: disc;\">\n<li>Rule 2(b): Defines the \u2018Chief Executive Officer\u2019.<\/li>\n<li>Rule 4: Empowers the CEO to supervise execution of all Panchayat activities and schemes, disburse funds, and initiate proceedings.<\/li>\n<li>Rule 4(xiii): Places a duty on the CEO to ensure against loss of Panchayat funds or property and to take preventive steps.<\/li>\n<li>\n<p style=\"margin-bottom: 3%;\">Rule 4(xvi): Authorizes the CEO to address audit-related defects and irregularities.<\/p>\n<\/li>\n<\/ul>\n<p style=\"margin-bottom: 3%;\">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 <span style=\"font-weight: bold;\">\u201cto ensure against loss of money or property of any Panchayat\u201d<\/span> 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.<\/p>\n<p class=\"animate-charcter\" style=\"margin-bottom: 3%; margin-left: 36pt; font-weight: bold;\">\u201cIt 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.\u201d<\/p>\n<p style=\"margin-bottom: 3%;\">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.<\/p>\n<p style=\"margin-bottom: 3%;\">[<span style=\"font-weight: bold; color: #632423;\"><span style=\"font-style: italic;\">Manghu Baiga<\/span> v. <span style=\"font-style: italic;\">State of M.P.<\/span>, <a href=\"http:\/\/www.scconline.com\/DocumentLink\/K7h6I2G1\" target=\"_blank\" rel=\"noopener\">2025 SCC OnLine MP 4009<\/a>, Decided on 19-05-2025<\/span>]<\/p>\n<hr \/>\n<p>Advocates who appeared in this case:<\/p>\n<p style=\"margin-left: 18pt;\">Shri Akhilesh Kumar Singh, Counsel for the Petitioner<\/p>\n<p style=\"margin-left: 18pt;\">Ms. Shikha Sharma, Govt. Advocate, Counsel for the Respondent\/State<\/p>\n<p style=\"margin-left: 18pt;\">Shri Abhinav Shrivastava with Shri Siddharth Shrivastava, Counsel for the Respondent No. 2<\/p>\n<h3 style=\"color: #000080;\">Buy Constitution of India \u00a0<a href=\"https:\/\/www.ebcwebstore.com\/product\/the-constitution-of-india-coat-pocket-edition?products_id=100647\" target=\"_blank\" rel=\"noopener\">HERE<\/a><\/h3>\n<p style=\"margin-bottom: 3%;\"><a href=\"https:\/\/www.ebcwebstore.com\/product\/the-constitution-of-india-coat-pocket-edition?products_id=100647\" target=\"_blank\" rel=\"noopener\"><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter size-large wp-image-294438\" src=\"https:\/\/s3.amazonaws.com\/ebcwebstore\/images\/the-constitution-of-india-coat-pocket-edition-Gopal-Sankaranarayanan-ebc-front-cover.JPG\" alt=\"Constitution of India\" width=\"300\" height=\"200\" \/><\/a><\/p>\n<\/div>\n","protected":false},"excerpt":{"rendered":"<p style=\"font-style: italic;\">&#8220;It is the duty of Chief Executive Officer to ensure that no loss of money or property of Panchayat is caused&#8230;&#8221;<\/p>\n","protected":false},"author":67514,"featured_media":317738,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[3,10],"tags":[82847,82850,59736,82848,82845,63235,7201,82852,82849,34917,82851,32638,82846],"class_list":["post-349348","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-casebriefs","category-highcourts","tag-chief-executive-officer","tag-chief-executive-officer-powers","tag-corruption-case","tag-financial-powers","tag-financial-powers-of-sarpanch","tag-justice-vishal-dhagat","tag-madhya-pradesh-high-court","tag-madhya-pradesh-panchayat-powers-and-functions-of-chief-executive-officer-rules","tag-madhya-pradesh-panchayat-raj-act","tag-panchayat-funds","tag-rule-4","tag-sarpanch","tag-zila-panchayat"],"yoast_head":"<!-- This site is optimized with the Yoast SEO Premium plugin 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Petitioner contended that he was suspended by the impugned order on the ground that a case had been registered for the commission of offence under Sections 7,\u2026","rel":"","context":"In &quot;Case Briefs&quot;","block_context":{"text":"Case Briefs","link":"https:\/\/www.scconline.com\/blog\/post\/category\/casebriefs\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":265604,"url":"https:\/\/www.scconline.com\/blog\/post\/2022\/04\/19\/if-the-directly-elected-sarpanch-fails-to-call-the-meetings-of-the-panchayat-or-acts-in-a-manner-rendering-the-functioning-of-the-panchayat-at-a-standstill-the-member-of-the-panchayat-would-certainly\/","url_meta":{"origin":349348,"position":1},"title":"If directly elected Sarpanch acts in a manner rendering functioning of Panchayat at a standstill, would member of panchayat get right to move motion of \u2018no confidence\u2019? Bom HC explains","author":"Bhumika Indulia","date":"April 19, 2022","format":false,"excerpt":"Bombay High Court: Stating that in the democratic setup, the will of the majority is the rule, the Division Bench of S.V. Gangapurwala and Shrikant D. Kulkarni, JJ., held that if the directly elected Sarpanch fails to call the meetings of the Panchayat or acts in a manner rendering the\u2026","rel":"","context":"In &quot;Case Briefs&quot;","block_context":{"text":"Case Briefs","link":"https:\/\/www.scconline.com\/blog\/post\/category\/casebriefs\/"},"img":{"alt_text":"Bombay High Court","src":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2022\/02\/Bombay-HC.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2022\/02\/Bombay-HC.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2022\/02\/Bombay-HC.jpg?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2022\/02\/Bombay-HC.jpg?resize=700%2C400&ssl=1 2x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2022\/02\/Bombay-HC.jpg?resize=1050%2C600&ssl=1 3x"},"classes":[]},{"id":259635,"url":"https:\/\/www.scconline.com\/blog\/post\/2022\/01\/07\/mp-hc-state-saddled-with-costs-for-colourable-exercise-of-power-reflecting-favours-petition-allowed\/","url_meta":{"origin":349348,"position":2},"title":"MP HC | State saddled with costs for colourable exercise of power reflecting favours; petition allowed","author":"Editor","date":"January 7, 2022","format":false,"excerpt":"Madhya Pradesh High Court: The Division Bench of Sheel Nagu and Purushaindra Kumar Kaurav, JJ. allowed petition filed under Art 226 of the Constitution filed by Smt Rampyari Patel and quashed impugned order dated 06-07-2021 passed by State Government. Sarpanch of Gram Panchayat was suspended u\/s 39 of M.P. Panchayat\u2026","rel":"","context":"In &quot;Case Briefs&quot;","block_context":{"text":"Case Briefs","link":"https:\/\/www.scconline.com\/blog\/post\/category\/casebriefs\/"},"img":{"alt_text":"","src":"","width":0,"height":0},"classes":[]},{"id":6451,"url":"https:\/\/www.scconline.com\/blog\/post\/2015\/01\/30\/court-not-to-interfere-in-the-matter-of-elections-once-the-election-process-has-commenced\/","url_meta":{"origin":349348,"position":3},"title":"Court not to interfere in the matter of elections once the election process has commenced","author":"Sucheta","date":"January 30, 2015","format":false,"excerpt":"Rajasthan High Court: In a matter brought before the Court by the petitioners who are aggrieved with the promulgation of an Ordinance by the Governor of the State of Rajasthan, which mandates educational qualification to represent the post of Sarpanchs, members of Panchayat Samiti and Zila Parishads, a bench comprising\u2026","rel":"","context":"In &quot;High Courts&quot;","block_context":{"text":"High Courts","link":"https:\/\/www.scconline.com\/blog\/post\/category\/casebriefs\/highcourts\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2015\/10\/scc-blog_Page_9.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2015\/10\/scc-blog_Page_9.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2015\/10\/scc-blog_Page_9.jpg?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2015\/10\/scc-blog_Page_9.jpg?resize=700%2C400&ssl=1 2x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2015\/10\/scc-blog_Page_9.jpg?resize=1050%2C600&ssl=1 3x"},"classes":[]},{"id":237640,"url":"https:\/\/www.scconline.com\/blog\/post\/2020\/10\/17\/guj-hc-reasons-given-by-lower-authorities-sound-enough-to-set-aside-removal-of-sarpanch-under-s-571-of-gujarat-panchayat-act-court-dismisses-petition\/","url_meta":{"origin":349348,"position":4},"title":"Guj HC | Reasons given by lower authorities sound enough to set aside removal of Sarpanch under S. 57(1) of Gujarat Panchayat Act; Court dismisses petition","author":"Editor","date":"October 17, 2020","format":false,"excerpt":"Gujarat High Court: A.G. Uraizee, J., dismissed a petition which was filed aggrieved by the dismissal of Revision Application by the Secretary, Forest and Environment Department which had upheld the order of the Deputy Collector. Respondent 7 was the Sarpanch of Jetpur Gram Panchayat, according to the petitioner, by misusing\u2026","rel":"","context":"In &quot;Case Briefs&quot;","block_context":{"text":"Case Briefs","link":"https:\/\/www.scconline.com\/blog\/post\/category\/casebriefs\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2018\/12\/1200px-Gujarat-High-Court-1.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2018\/12\/1200px-Gujarat-High-Court-1.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2018\/12\/1200px-Gujarat-High-Court-1.jpg?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2018\/12\/1200px-Gujarat-High-Court-1.jpg?resize=700%2C400&ssl=1 2x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2018\/12\/1200px-Gujarat-High-Court-1.jpg?resize=1050%2C600&ssl=1 3x"},"classes":[]},{"id":261004,"url":"https:\/\/www.scconline.com\/blog\/post\/2022\/02\/02\/disqualification-of-sarpanch-from-her-position-in-suspicion-of-benefitting-her-close-relations-by-allotting-work-under-panchayats-order-without-establishment-of-direct-or-indirect-involvemen\/","url_meta":{"origin":349348,"position":5},"title":"Disqualification of Sarpanch in suspicion of benefitting her close relations by allotting work under Panchayat\u2019s order, without establishment of direct or indirect involvement as per S. 14(1)(g) of Maharashtra Village Panchayats Act: Is it correct? Bom HC analyses","author":"Bhumika Indulia","date":"February 2, 2022","format":false,"excerpt":"Bombay High Court: Quoting a phrase from a story of a Roman Ruler Julius Caesar that, \u201cCaesar\u2019s wife should be above suspicion\u201d, Bharati H. Dangre, J., remarked that, \u201c\u2026those who are vested with the powers are to be made more accountable and transparent in their functioning and subjected to social\u2026","rel":"","context":"In &quot;Case Briefs&quot;","block_context":{"text":"Case Briefs","link":"https:\/\/www.scconline.com\/blog\/post\/category\/casebriefs\/"},"img":{"alt_text":"","src":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2022\/01\/Bombay_New-logo.jpg?resize=350%2C200&ssl=1","width":350,"height":200,"srcset":"https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2022\/01\/Bombay_New-logo.jpg?resize=350%2C200&ssl=1 1x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2022\/01\/Bombay_New-logo.jpg?resize=525%2C300&ssl=1 1.5x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2022\/01\/Bombay_New-logo.jpg?resize=700%2C400&ssl=1 2x, https:\/\/i0.wp.com\/www.scconline.com\/blog\/wp-content\/uploads\/2022\/01\/Bombay_New-logo.jpg?resize=1050%2C600&ssl=1 3x"},"classes":[]}],"amp_enabled":true,"_links":{"self":[{"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/posts\/349348","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/users\/67514"}],"replies":[{"embeddable":true,"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/comments?post=349348"}],"version-history":[{"count":0,"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/posts\/349348\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/media\/317738"}],"wp:attachment":[{"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/media?parent=349348"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/categories?post=349348"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.scconline.com\/blog\/wp-json\/wp\/v2\/tags?post=349348"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}