All States should make arrangement for a three-tier vigilance mechanism:
i. State: At the State level, a Vigilance Cell consisting of a Chief Vigilance Officer (CVO) should be set up. The CVO may be a senior government officer or a retired officer supported by at least two senior officials (serving or retired), one Civil Engineer and an Auditor.
ii. District: At the district level, a Vigilance Cell will be set up. The cell will be headed by a district level officer and supported by an Engineer and an Auditor (of appropriate seniority). Engineer and Auditor may also be hired/appointed on contract.
iii.Local level (village): At the local level, Vigilance and Monitoring Committee should consist of about ten members half of whom shall be women with representation for Scheduled Castes and Scheduled Tribes in proportion to their population. Members of the Vigilance and Monitoring Committee may be identified from among local school teachers, anganwadi workers, SelfHelp Group members, Social Audit volunteers, members of various Community Based Organisations, user groups, youth clubs etc. The Vigilance and Monitoring Committee team should be appointed/nominated/elected by the Gram Sabha for a period of 6 months but not exceeding one year. The State Government may consider providing an honorarium to the members of the Vigilance and Monitoring Committee for the period of time that they are required to give every month.
