A sum of Rs 11.73 crore was found to be misappropriated in the Mahatma Gandhi National Rural Employment Guarantee Programme in Andhra Pradesh, the chief minister's office has said.

The rural development department officials, however, informed chief minister K Rosaiah that the amount was "recovered" through social auditing.

"Nearly 4,000 employees involved with NREGP works have been dismissed, 208 were placed under suspension and 1,433 department enquiries into the misappropriation of funds have been initiated," the officials told the chief minister, according to the CMO release.

They also said 639 First Information Reports have been also lodged with the police over the embezzlement of funds.

Interestingly, the CMO release quoted Rosaiah as saying: "Andhra Pradesh had set new standards and also become a role model in implementation of the UPA's flagship programme, the Mahatma Gandhi NREGP."

Rosaiah, however, stressed on the need to plug loopholes, if any, in the implementation of welfare schemes and ensure that the intended benefits reached only genuine and needy beneficiaries.

"There is no point in spending huge amounts from the exchequer on developmental and welfare schemes if loopholes in the administrative machinery exist and poor and needy are unable to take the benefits," he said and asked the officials to evolve an efficient delivery mechanism to overcome the lapses.

The Chief Minister asked all MPs, MLAs and MLCs to closely monitor the progress of welfare schemes and bring the lapses, if any, to his notice. He said that intervention of local elected representatives helped the government recover Rs 2.5 crore that was misappropriated in the housing scheme in Adilabad district.