The Supreme Court has taken serious note of the alleged misappropriation of CAMPA (Compensatory Afforestation Fund Management and Planning Authority) funds in Uttarakhand. The funds, intended for improving the country's green cover, were reportedly diverted for inadmissible expenses, including the purchase of iPhones, laptops, fridges, and renovation of buildings.

The Apex Court, expressing its concern, has asked the Chief Secretary of Uttarakhand to provide an affidavit explaining the alleged misuse of funds.

Court’s Observations on the Misuse of CAMPA Funds

"The CAMPA fund is to be utilized for increasing the green cover. Utilization of the same for non-admissible activities and not depositing the interest as per the Act with the SCAF is a matter of serious concern. We therefore direct the Chief Secretary of the State to file an affidavit on these aspects by the next date," the Supreme Court stated.

A bench comprising Justices BR Gavai and AG Masih issued the directive after a report by the Comptroller and Auditor General of India (CAG) was brought to its attention by Amicus Curiae K Parmeswar. The report uncovered that Uttarakhand's forest authorities had diverted compensatory afforestation funds to purchases such as iPhones, laptops, coolers, and even court-related expenses.

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Findings from the CAG Report

The court, while reviewing the CAG report, noted:

"In the said report, the CAG has pointed out various irregularities in the utilization of CAMPA funds. It points out that a huge amount is spent in inadmissible manner on [...] renovation of existing buildings, expenses on personage, visits, court cases, purchases of iPhones, laptops, fridges, coolers, etc...the report further points out that though as per Section 4(5) and 4(6) of Compensatory Afforestation Funds Act, the state had to deposit interest under balance available under state compensatory afforestation funds...scrutiny of records of state authority show that the state government did not discharge the interest liability of Rs. 275.34 crores for the period between 2019-20 to 2021-22. It is stated that even though the state authority had requested state government for [...] from time to time, the said has not been done. The report further shows that the government has accepted the said fact and stated that in July 2023, the interest liability of Rs.150 crores has been deposited..."

The report highlights severe financial irregularities and the failure of the Uttarakhand government to fulfill its obligations under the Compensatory Afforestation Funds Act. According to the findings, the state failed to discharge an interest liability amounting to approximately Rs. 275 crores for the financial years 2019-20 to 2021-22, despite multiple requests.

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The CAG report also pointed out that the afforestation process, which was supposed to be completed within one to two growing seasons, was delayed by almost eight years in several instances. This delay led to an escalation in costs amounting to crores of rupees.

Additionally, the state authority failed to deposit interest accrued on CAMPA funds as mandated by law, further exacerbating the financial discrepancies.

Justice BR Gavai, addressing the legal representatives of Uttarakhand, issued a stern warning, stating that if the Chief Secretary fails to provide a satisfactory explanation by March 19, he will be summoned to appear before the court the following day.

Case Title: IN RE : T.N. GODAVARMAN THIRUMULPAD Versus UNION OF INDIA AND ORS., W.P.(C) No. 202/1995