The Kerala finance department has directed all heads of departments to initiate immediate legal and departmental action in cases involving misappropriation, theft, defalcation or loss of government money or property, warning that delays will invite strict action against responsible officers.

In a circular issued on January 5, Additional Chief Secretary (Finance) KR Jyothilal said the directive follows strong observations by the Public Accounts Committee (PAC) on delays in handling cases of financial irregularities flagged in PAC and Comptroller and Auditor General (CAG) reports.

Referring to the 69th and 83rd PAC reports for the 2023–26 period, the circular noted that the committee had expressed serious displeasure over delays in registering FIRs in several cases of misappropriation and defalcation. The PAC had observed that such delays allowed defaulters to take undue advantage and had recommended prompt, effective and time-bound action.

The finance department has instructed heads of departments to ensure immediate steps in every such case, including timely registration of FIRs wherever legally required. Any delay in initiating action will be viewed seriously, with responsibility fixed on the officers concerned.

Departments have also been told to ensure strict follow-up, including fixing accountability and recovering losses wherever applicable, in cases pointed out by the PAC and the CAG. The circular mandates that clear timelines be prescribed for completing departmental proceedings, and that these timelines be strictly adhered to in order to avoid delays.

Further, all departments must submit Action Taken Reports to the Finance Inspection (NT-D) wing within the stipulated time, for onward submission to the PAC. Since the matter will be reviewed by the Public Accounts Committee, the finance department has warned that any lapse or delay in complying with the instructions will be treated seriously.