District Magistrate Abhijit Sinha took the step after reviewing implementation of the project in Madhuban block of the district, official sources said today.
Those against whom action has been taken were charged with keeping the fund meant for the scheme in their private bank accounts instead of putting it in the government account.
Besides, the names of beneficiaries were also not entered in register, the sources said.
The DM initiated the action on the basis of a probe report by Block Development Officer (BDO), the sources added.