The Supreme Court on Monday  favoured a Central probe into the diversion of funds and non-implementation of rural employment scheme, MGNREGA, in Orissa.

“We are treating this matter seriously. We will give direction to the Centre to hold investigation into the allegation of diversion of funds. The report has to be submitted in a time-bound manner and then we will call the Chief Secretary. We want action on ground reality,” a bench headed by Chief Justice S H Kapadia said.

The bench said that the allegations were of serious nature on diversion of funds and non-implementation of MGNREGA in which Rs 40,000 crore was being released by the Centre annually to the state government. The bench posted the matter for orders on Thursday.

The bench said since the Orissa government itself is saying that some officers have been suspended, it means that there is reality in the allegation.

“What nonsense is going on,” the bench also comprising justices K S Radhakrishnan and Swatanter Kumar asked and told senior counsel T S Daobia, appearing for the Centre, to look into the matter.

“You (Centre) are granting funds but you are not taking steps. All funds are going waste,” the bench said.

The bench also wanted to know from the Centre the steps it intends to take on the allegations concerning Orissa.

The court was hearing a PIL filed in 2007 by an NGO Centre for Environment and Food Security alleging large-scale corruption in the implementation of the MGNREGA scheme.