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LATEST NEWS UPDATES | CAG Indicts Chhattisgarh Over 'Diversion' of Foodgrains

CAG Indicts Chhattisgarh Over 'Diversion' of Foodgrains

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published Published on Feb 26, 2014   modified Modified on Feb 26, 2014
-Outlook


Raipur: The CAG has indicted the Chhattisgarh government for diverting around 10 lakh tonnes of foodgrains from the central scheme to the state's Mukhyamantri Khadyan Sahayata Yojna without permission and in violation of Centre's instructions.

CAG report on the Public Sector Undertakings for the year ended March 2013, was tabled in the state assembly here today.

"At the direction of the Government of Chhattisgarh, the State Civil Supplies Corporation Limited (company) diverted 7.43 LT rice and 1.91 LT wheat from the Central scheme to the state scheme (Mukhyamantri Khadyan Sahayata Yojna) in violation of Government of India instructions, resulting in the diversion of foodgrains valuing Rs 1,975.43 crore and wrong claim of Rs 899.12 crore from GoI," the report said.

Briefing the highlights of the report in a press conference, Accountant General (Audit) Chhattisgarh P C Majhi said the company distributed rice without the Centre's allotment under mid-day meal scheme and other welfare schemes, which resulted in non-receipt of Rs 35.78 crore.

"There were delays in the finalisation of accounts of the company, due to which it could submit its audit account to government of India in time leading to the blockage of subsidy claims of Rs 760.93 crore and consequent loss of interest of Rs 186.81 crore," Majhi added.

Dues of the company of Rs 1.48 crore could not be recovered from fair price shops due to ineffective action by the Food, Civil Supplies and Consumer Protection department, he said.

The report also underlined irregular finalisation of rare contracts by Chhattisgarh Rajya Beej Evam Krishi Vikas Nigam Ltd for vegetable seeds that resulted in placement of orders worth Rs 47.26 crore on ineligible bidders.

According to the report, failure of the Chhattisgarh State Beverages Corporation Ltd to recover excise duty of Rs 2.97 crore from the suppliers and deposit it with the Excise Department resulted in extension of undue benefit to the suppliers and loss to the state exchequer to that extent.


Outlook, 25 February, 2014, http://news.outlookindia.com/items.aspx?artid=830489


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