Lokayukta Justice Nawal Kishore Agarwal (retd) pronounced on Friday, his verdict in the matter, in which irregularities reportedly to a tune of Rs 25.13 crore took place.
"In view of my foregoing findings, discussions and observations, which are based on vigilance inquiry, it is recommended to the competent authority to initiate appropriate action including registration of criminal case against them," the Lokayukta said in its order.
The Lokayukta has also said that an action taken report on the recommendations be sent to it within three months.
Two of the four IAS officers, against whom action has been recommended, are women.
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Haryana's Health Minister and Ambala Cantt MLA Anil Vij hailed the Lokayukta's decision.
"Saplings had been shown planted in certain villages where no land was available. The labourers which they showed as having been paid, also did not exist in those villages. On paper, they showed that a road had been constructed, which again was untrue.
Justice Agarwal has sent his recommendations to state chief secretary D S Dhesi. The verdict came on a petition moved by Panipat based RTI activist P P Kapoor.
Haryana Vigilance Bureau had in January 2015 registered a case against nine officials of Forest Department, Ambala over alleged misappropriation of funds. Chief Minister Manohar Lal Khattar had ordered the registration of a case against forest officials in this matter, which had been lingering for several years.
Kapoor, in his complaint, alleged that while a case had been registered against the forest department officials, similar action was not taken against the IAS officers, who he claimed, were being shielded by the government.
The vigilance bureau report had mentioned flouting of rules by IAS and other officers while releasing funds to the district forest officers.
Out of total allocation of Rs 46.04 crore, an amount of Rs 25.13 crore was allegedly released without approval, according to the probe.
An FIR was registered on January 27, 2015, under the provisions of Prevention of Corruption Act and sections of Indian Penal Code against nine forest officials.
"It is very difficult to believe that they (officers) will regularly release funds to the forest officials ignoring the real execution of the work and also ignoring several rules framed in this regard without any motive and only due to supervisory lapse.
"Moreover, the inquiry was conducted under the supervision of DG, State Vigilance Bureau, who himself highlighted several instances leading to his conclusion that the IAS/HCS officers are guilty of active and deliberate cooperation in misappropriation of funds with the forest officials", the Lokayukta said in the order.