Vijayawada: The Centre has started a probe into the diversion of Mahatma Gandhi National Rural Employment Guarantee Scheme (MNREGS) funds.

Former TD MPs Nama Nageswara Rao and Modugula Venugopal Reddy had written letters over the use of MGNREGS funds and material component to the Centre.

They wrote about the use of machinery and increase in the material component, which was noticed at 35.9 per cent, against the prescribed 30 per cent. The CAG has recorded Rs 146-crore corruption in the MGNREGS funds.

Chief Minister N. Chandrababu Naidu has alleged that following complaints of YSRC MPs Y.V. Subba Reddy and Avinash Reddy over the use of machinery had led the Centre to delay funds in the name of an inquiry.

Government data and the MGNREGS website both show that flow of funds has stopped to the state. The CAG also found less use of MGNREGS funds in Vizianagaram, Visakhapatnam and Prakasam districts.

As per government statistics, 97.48 per cent of MGNREGS works were completed in 2014-15 79.44 per cent in 2015-16 and 68.1 per cent in 2016-17, which is showing a declining trend.