Observing that it was the money of honest tax payers which are being misappropriated, a three-judges bench headed by Chief Justice SH Kapadia said if the Centre fails to take a decision within the stipulated time, then it would step in.
"We are informed by Additional Solicitor General (Indira Jaising) that the government is considering to appoint CBI for conducting the probe. For that purpose, we are giving four weeks time.
"We make it clear that if the Centre does not take any decision, we would step in," the bench said.
The bench said the reports from Comptroller and Auditor General of India (CAG) and National Institute of Rural Development (NIRD) shows there was misappropriation of funds to the tune of 88 per cent in some districts of Orissa.
"Reports of CAG as well as of NIRD shows misappropriation of funds allegedly by officials and functionaries of the implementation agencies, resulting in diversion of funds of honest tax payers of the nation," the apex court said adding such "leakage of funds" has deprived the "beneficiaries from payment of their dues".