Chhattisgarh diverts about 1 mn tonne Centre's foodgrains for state scheme

CAG report says diversion in violation of govt instructions worth Rs 1,973.43 cr

Chhattisgarh had diverted a little less than a million tonne of foodgrains allotted by the Government of India (GOI) to execute the state-run scheme.

“At the direction of Government of Chhattisgarh, the company (Chhattisgarh state civil supplies corporation) diverted 743000 metric tonne rice and 191000 metric tonne wheat from central schemes to state scheme (Mukhyamantri Khadyann Yojana),” Purna Chandra Majhi, Accountant General (audit) Chhattisgarh              said Tuesday.

Earlier, the state government tabled the report of the Comptroller and Auditor General (CAG) of India on public sector undertakings for the year ended March 2013. The diversion was in violation of GoI instructions that resulted in diversion of foodgrains valuing Rs 1973.43 crore, the CAG report said, adding that the state government also made wrong claim of Rs 899.12 crore from GOI.

The CAG report added that the company distributed rice without GoI allotment under Mid Day meal scheme and other welfare schemes that resulted in non-receipt of Rs 35.78 crore. “For procurement of wheat and sugar, the company is under obligation to follow the allotment made by the department,” Majhi said.  

The report also underlined serious lapse on the part of the company in finalising the accounts. It said there were delays in finalisation of accounts of the company due to which it could not submit its audited accounts to the GoI in time leading to blockage of subsidy claims of Rs 760.93 crore and consequent loss of interest of Rs 186.81 crore.

The dues of the company to the tune of Rs 1.48 crore could not be recovered from fair price shops due to ineffective action by the department. There was lack of coordination among the various agencies which resulted in storage of excess stock and consequent avoidable storage charges. Mismatch in allotted quantity of GoI and Chhattisgarh government caused excess and short distribution of foodgrains and submission of incorrect utilisation certificates to GoI by the company.