Kendrapara, June 23: Ghost of the 1999 super-cyclone reconstruction and restoration project scam continues to haunt the Kendrapara Municipality. There is no trace of the Rs 22lakh central grant that had been released for post-cyclone restoration projects.

More than a decade after its release, the local civic body failed to submit utilisation certificate for judicious use of the grants.

Taking strong exception to non-submission of utilisation certificate, the state urban development department has threatened to hold up the release of further grants for urban development projects.

“Fault lies with the then civic body authorities. The acts of omission and commission were perpetrated by those at the helm of the civic body in 1999. Moreover, the alleged misuse of funds has been taken up for investigation by vigilance wing of the state police. As the funds have been defalcated, the onus lies with the investigating agency to take the culprits to task,” said Sabita Sahu, vice-chairman, Kendrapara Municipality.

As records and documents relating to release of the grants are missing, the submission of utilisation certificate could not be made, she said.

Vigilance wing of the state police has framed chargesheet against the then Kendrapara Municipality authorities in connection with reconstruction grants bungling.

In the aftermath of 29-30 October super-cyclone, allegations flew thick and fast that there was plunder of the post-cyclone restoration and reconstruction grants sanctioned to Kendrapara urban areas. There was generous flow of grants both from the state and the Centre to rebuild the ravaged town then.

The Kendrapara Municipality, established in 1869 during the British rule, is incidentally the state’s oldest civic body.

“Prima facie evidence of funds misappropriation is now established. Of the Rs 1 crore accrued from various agencies, an estimated Rs 40 lakh are found out to have been embezzled,” said Biswa Ranjan Pattnaik, deputy superintendent of police, Kendrapara vigilance wing.

The vigilance wing responding to widespread charge of fund bungling had taken up the cyclone grants scam in 2002.

However, there was considerable delay in expeditious investigation, as many records connected to the case were not available at the municipality.

Some of the vital records and documents had been destroyed by the accused persons to hush up the case, said vigilance wing officers.

Central grant worth over Rs 1 crore were sanctioned for reconstruction of damaged educational institutions, markets, roads and drainage and sewerage systems.

Funds were drawn for reconstruction work, but its execution was confined to pen and paper.

Funds had been gobbled up against fictitious bills and payment vouchers, said vigilance police officers.