1. The petitioners in W.P.(C) No.34584/2025 are Accredited Overseers engaged on contract basis under the Mahatma Gandhi National Rural Employment Guarantee Scheme (MGNREGS), in the 6th respondent-Vellarada Grama Panchayat. They were appointed during the year 2013 on contract basis.

2. The petitioners state that on the basis of Exts.P4 order of the 8th respondent-Ombudsman for MGNREGS, a special audit was conducted by the Joint Director, Local Fund Audit Department.  The report of the Local Fund Audit mentioned the failure of Assistant Executive Engineers. The work carried out by the Overseers is as per the sanctions and directions of the Accredited Engineer, the Panchayat Secretary, the Accredited Engineer (Block) and the Accredited Engineer (District).

3. The petitioners assert that they were never allotted the work for the Nooliyankulam project and they were never entrusted with the responsibility of monitoring or supervising the said project. Ext.P5 audit report, while mentioning lack of oversight on the part of the petitioner Overseers, did not explicitly name the petitioners as responsible for various financial irregularities, contend the petitioners.

4. The 6th respondent-Panchayat, however, issued Ext.P7 charge memo dated 18.08.2025 to the petitioners. Later, the 6th respondent issued suspension order dated 22.08.2024. The petitioners challenge Ext.P10 suspension order. The petitioners had filed Exts.P11 and P12 appeals against the Ombudsman's order before the State Appellate Authority (Ombudsman). Orders are yet to be passed in the appeals. The petitioners state that orders of suspension imposed on them are illegal and the respondents are compellable to reinstate the petitioners to their respective posts as Accredited Overseers.

5. The petitioner in W.P.(C) No.35218/2025 states that he was appointed as Accredited Engineer by the Vellarada Grama Panchayat on contract basis with effect from 24.04.2018. The agreement of contract was renewed from time to time. Thereafter, on the basis of Ext.P2 order dated 28.07.2025 of the 8th respondent-Ombudsman, a special audit was conducted and Ext.P3 audit report was submitted. The 6th respondent-Panchayat gave a detailed response to the audit report and requested to avoid further proceedings as per Ext.P4.

6. The petitioner has filed Ext.P5 appeal before the 9th respondent-State Appellate Authority (Ombudsman). In spite of the pending appeal, the 6th respondent-Panchayat issued Ext.P6 charge memo to the petitioners on 18.08.2025. The petitioner submitted Ext.P7 reply. The petitioner was, however, placed under suspension for a period of three months, as per Ext.P8 decision of the Panchayat and Ext.P9 suspension order dated 22.08.2025.

7. The petitioner states that the suspension order was issued on the same day the petitioners gave a reply to the charge memo. It is evident that the respondents have not considered the reply given by the petitioner. He was not given an opportunity of hearing either. Proceedings have been initiated only against the petitioner and two Overseers and the others implicated in the audit report are not proceeded against.

8. The 6th respondent has now issued Ext.P11 notice for a walk-in interview to fill up the vacancy of Accredited Engineer. The 6th respondent is not justified in filling up the vacancy of the Accredited Engineer presently held by the petitioner. The petitioner therefore seeks to set aside Exts.P9, P10 and P11 and to direct the respondents to reinstate the petitioner in service.

9. The Secretary to the Grama Panchayat filed counter affidavit. The Secretary submitted that the Joint Director, Local Self Government Department found grave irregularities on the part of the petitioners who have deliberately committed loss to the exchequer and public money in the works executed by them. Though the petitioners have filed appeal against the order of the Ombudsman, the Appellate Authority has not granted interim stay orders. The petitioners are under suspension from 22.08.2025 onwards. The allegations levelled against the petitioners are grave. A vigilance enquiry is also contemplated.

10. With the existing two Accredited Overseers it is difficult for the Grama Panchayat to provide employment to the registered labourers and to execute projects under MGNREG Scheme. Therefore, it is necessary that Accredited Overseers / Engineers are recruited by the Panchayat.

11. I have heard the learned counsel for the petitioners, the learned Government Pleader representing the State of Kerala and the learned Standing Counsel appearing for the Vellarada Grama Panchayat.

12. The petitioners have been serving as Accredited Engineers / Accredited Supervisors since 2013/2018 onwards. The Ombudsman for MGNREGS, on a complaint of financial irregularities received, directed enquiry by Local Fund Audit Department. The Joint Director submitted audit report dated 20.05.2025.

13. On the basis of the audit report, charge memos have been issued on the petitioners and a departmental enquiry has commenced by issuing charge memo. The petitioners have been put under suspension. The petitioners challenge the charge memo as well as suspension orders.

14. As the charge memos have been issued based on an audit report made pursuant to the directions of the Ombudsman, and since I do not find any illegality or irregularity in the issuance of charge memos, the disciplinary proceedings cannot be interfered with at this stage. Considering the allegations made against the petitioners, it cannot be said that the orders of suspension are unwarranted. The prayers of the petitioners therefore cannot be granted.

15. However, taking into consideration the facts of the case, the writ petitions are disposed of with the following directions:

                  (i) The State Appellate Authority (Ombudsman), MGNREGS shall finally dispose of the appeals preferred by the petitioners within a period of six weeks from the date of receipt of a copy of this judgment, if the appeals are not disposed of already.

                  (ii) The disciplinary proceedings against the petitioners shall stand deferred till orders are passed on the appeals as directed above.

                  (iii) The disciplinary proceedings against the petitioners shall continue thereafter, depending upon the findings of the Appellate Authority.

                  (iv) If the Panchayat proposes to continue the disciplinary proceedings, the proceedings shall be concluded within a period of four months from the date of the appellate order.

                  (v) The Panchayat will be free to make appointments to the posts of Accredited Engineer / Accredited Overseers on temporary basis subject to the culmination of the proceedings initiated against the petitioners.

                  The petitioners shall serve a copy of this judgment on the Appellate Authority and the Secretary to the Grama Panchayat.