In April 2020, the central government suspended the Member of Parliament Local Area Development Scheme (MPLAD) scheme for two years to divert the funds towards Covid-19 management efforts. Opposing the government’s stance, a public interest litigation (PIL) was filed in the Bombay High Court. It was claimed in the PIL that since the funds given under the MPLAD scheme are meant to be utilised for the development of their constituencies by the MPs, the suspension for two years should be done away with. The contention of the Ministry of Statistics and Programme Implementation (which had suspended the scheme) on the PIL was that the funds were suspended for diversion to the finance ministry for the purpose of mitigating the impact of pandemic.
A bench comprising the Chief Justice of Bombay High Court Dipankar Datta and Justice G.S. Kulkarni heard the PIL.
In its December 2020 verdict the high court supported the government’s stand on the matter and stated that the union government had the right to suspend the MPLAD scheme and instead use the funds for larger public good—tackling the Covid-19 pandemic. The bench further noted that suspension did not abrogate any legal right of a citizen that would require judicial intervention. It justified the government’s decision that combating the pandemic was the priority.
MPLAD Scheme
The MPLAD scheme was introduced by the former Prime Minister of India, P.V. Narasimha Rao, is December 1993. Under the scheme, the members of parliament (MPs) suggest various development programmes in their respective constituencies, the expenditure for which could go up to ` 5 crore per year. The MPs belonging to the Lok Sabha and the Rajya Sabha, including the nominated candidates, are eligible for funds under the scheme.
Under the MPLAD scheme, the central government transfers funds to the local authorities of any constituency, based upon the recommendations for activities provided by the MP for that particular constituency. The activities or programmes are recommended by the legislators based on a set of guidelines.
The suspension of the MPLAD scheme would make available an amount of approximately ` 7800 crore to the government.