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LATEST NEWS UPDATES | UP grain scam: ED joins CBI probe

UP grain scam: ED joins CBI probe

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published Published on Dec 7, 2010   modified Modified on Dec 7, 2010

In what is expected to add more teeth to the investigation into the multi-thousand crore foodgrain scam in UP, the Enforcement Directorate (ED) on Tuesday decided to join the CBI investigation. The Allahabad HC had on Friday asked CBI to join the probe into the unprecedented foodgrain pilferage in UP between 2004 and 2007 when Mulayam Singh Yadav was the chief minister. 

The case relates to the smuggling of grain meant for PDS, mid-day meals and such other schemes out to other states and also neighbouring countries. The ED, sources say, will probe moneylaundering charges and foreign exchange violations in the grain scam, now considered much bigger than the initial guesstimate of Rs 35,000 crore. 

Vishwanath Chaturvedi, who first moved Supreme Court seeking a faster probe, talks of an involvement of no less than Rs 2 lakh crore, given that it involves 34 of 71 UP districts. More than 450 Class-I government officials and another 800 middle and lower-rung subordinates apart from some 10,000 private entities are likely to be involved in the scandal. The CBI may require 5,000 FIRs to cover the scam in totality, says a source. 

The Allahabad high court had on Friday directed CBI to seek ED help as the accused might be scattered all over — even across the borders. The ED on Tuesday finally pitched in. 

Since it is believed that the grain made its way to neighbouring countries such as Nepal and Bangladesh, the government's apex agency for money laundering and foreign exchange violations cases, will also look into possible violations of Foreign Exchange Management Act (Fema). 

The scam started in 2004 during Samajwadi Party's rule left hungry those covered under the Antyodaya Scheme, Jawahar Rozgar Yojana and Mid-Day Meal Scheme. The diversion of foodgrains continued until 2007. Mulayam's younger brother was the agriculture minister during the period. 

In a 93-page judgment delivered on Friday, a division bench of the HC comprising Justice Devi Prasad Singh and Justice S C Chaurasia observed that smuggling of foodgrain by fabrication of records was not only daring but showed the public servants feel that they have "unfettered right" to indulge in corrupt practices as there's only a remote chance of punishment by the court of competent jurisdiction. "It is unfortunate for the country," said the court. 

"A message must be given by the investigating agencies keeping in view of the concept of equality enshrined in the Constitution that, "be you ever so high, the law is above is you. Law must take its course to punish the guilty," it added.


The Times of India, 8 December, 2010, http://timesofindia.indiatimes.com/india/UP-grain-scam-ED-joins-CBI-probe/articleshow/7062818.cms


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