Central Government had put a rule that all fifteenth Finance Commission funds should only be deposited in Bank accounts of Panchayats.
This is after the state government diverted the funds and left Panchayats high and dry. But Andhra Pradesh government had decided to violate the rule.
It was decided that the 379 Crores of Finance Commission funds will be deposited to PD accounts and will be transferred to Power companies towards pending bills.
The Government already diverted 1244 Crore of these funds and Sarpanches had to protest.
Union Rural Development ministry had to intervene and bring this new rule. They also ensured that accounts are opened in the name of all Panchayats.
Sarpanches were happy that finally they would get funds and do some work in their Panchayats. But the Government shocked them once again at the last minute.
