Cag Asked To Probe Bengal Treasury Scam

The Calcutta High Court has directed the Comptroller & Auditor General of India (CAG) to conduct an independent inquiry into the alleged treasury scandal in the state of West Bengal and submit a report to the court.

On a public interest litigation initiated by Congress MP Mamata Banerjee, Justice Satya Brata Singha yesterday passed the order of inquiry. The case has been referred to a division bench.

This is the first time that the Left-ruled government, which completed 20 years in office last week, is facing an allegation of financial irregularities in court.

Banerjee had filed the case against the illegal opening of the personnel ledger account (PLA) by the treasuries of West Bengal, in terms of the directions of the officers of the state government, by which Rs 55,000 crore of public money has allegedly been siphoned off.

Buddhadev Bhattacharjee, state home (police) minister declined to comment, saying no decision has been taken on the partys future course of action.

While passing the order, Justice Singha directed the collectors of all districts of the state to oversee the functions of the treasuries under them, and to make surprise inspection for the purpose of seeing as to whether the treasury officers are acting within the four corners of treasury rules and subsidiary rules of West Bengal.

The court further ordered that the collectors will see that no evidence as to the allegations of possible defalcation made in the petition is destroyed or tampered by any persons.

The judge observed: The state government should submit its explanation in respect of the annual review of working of the Treasuries in West Bengal for the period 1992-93 to 1994-95 and the queries made by the deputy accountant general to the CAG...that upon considering the explanation of the state government, the CAG may make an independent enquiry and submit its report to the court.

Justice Singha said The CAG may pray for any further clarification if exigency of the situation so demands. The stand taken by the state government that they have nothing to hide, it is expected that all co-operation should tender to the CAG by the state government.

The judge further observed that the division bench may consider the submission of the state government that writ court should not interfere in this matter which is based on a newspaper report and on the basis of an interim report made by some officers of accountant general.

Justice Singha, while referring the case to the acting chief Justice for constitution of a division bench, directed the parties to file their affidavits within four weeks.