CAG exposes scam in rice procurement

Irregularities in procurement and milling caused a loss of at least Rs.50,000 crore over the past five years. Motorcycles, autorickshaws, jeeps and even handcarts were shown on paper to have transported paddy and processed rice weighing between 14 and 1,800 quintals, in States such as Punjab, Uttar Pradesh, Bihar and Chhattisgarh, according to a report by the Comptroller and Auditor-General of India (CAG).In Punjab, 97 per cent of the 3,319 registration numbers of vehicles mentioned as used for transportation did not match the State transport authority’s computerised database. Of the 88 traceable vehicles, 15 were found to be other than trucks — buses, cars, motorcycles and tankers. The report has highlighted massive irregularities in the procurement and milling of paddy for the central pool of the public distribution system that resulted in a loss of at least Rs. 50,000 crore over the past five years.

The government paid Rs.17,985 crore without confirming if the farmers received the full payment. The CAG has, therefore, recommended direct payment to farmers. In addition, these irregularities resulted in further losses on account of government subsidies of Rs.22,000 crore. The CAG has recommended a thorough probe into all doubtful cases of transportation of paddy. It has also suggested investigation toascertain the actual quantum of loss to the exchequer, which would be much higher. The first-of-its-kind audit was undertaken amid complaints by RTI activist Gouri Shankar Jain alleging massive corruption by unscrupulous mill owners with the connivance of government servants. In March, The Hindu had reported extensively on the issue.