FCI loader gets Rs 4.5 lakh wages; SC asks govt to check graft

A bizarre revelation that a loader of Food Corporation of India (FCI) earned a whopping Rs 4.5 lakh as monthly wages, more than the President of India's salary, today caught the attention of the Supreme Court which asked the Centre to spell out steps taken to stem the rot.
The apex court said there were a lot of "malpractices" in FCI and the system there was "wholly unsatisfactory", which a High Level Committee (HLC), chaired by senior BJP leader Shanta Kumar, has said in its report.
A bench headed by Chief Justice T S Thakur was hearing an appeal filed by the FCI Workers Union against the order of the Bombay High Court's Nagpur Bench which had passed a slew of directions to the Centre, based on the HLC report.

The bench, which refused to interfere with the High Court order at this stage, said "there has been a Rs 1800 crore of loss per year" to the FCI whose "departmental labourers" are involved in engaging "proxy workers," which is clear from the HLC's report.
"Even the high level committee headed by senior BJP leader Shanta Kumar in its report said that 370 labourers were getting salary of around Rs 4.5 lakh per month.
"This is Rs 1800 crore excess of the amount to be paid and you are not allowed to have contract labour. How is Rs 4.5 lakh per month earned by a labourer," the bench, which also comprised Justices A K Sikri and R Banumathi, asked.

"How can a labourer earn Rs 4.5 lakh in a month? Is he a labourer or contractor? How a labourer carrying a sack earns Rs 4.5 lakh per month," the bench said, adding "you (departmental labourers) are today earning wages more than that of the President of India."

The FCI counsel said there were various incentives that allow departmental workers to earn around Rs 1.1 lakh a month.
"What are the incentive schemes? There is allegation of proxy labour. It is a sub-let kind of thing," the bench said and also referred to a report of M/S Deloitte on Manpower Planning & Induction Policy saying 370 labourers were getting salary of around Rs 4.5 lakh per month.

The bench did not agree with the claim of Workers Union counsel Amit Sibal that wrong impression was projected and the High Court should not have taken a suo motu cognizance of a media report.
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"We would like to know what decision you have taken pursuant to the direction of the high court. There is something seriously wrong.
"If you don't listen to the high level committee, we will appoint high level committee of former judges of this court to fix responsibility for malpractices and irregularities. There is a loss of Rs 1800 crore," the apex court bench said.

It said the Centre has to take a call on the basis of the High Court direction to decide whether to abolish the departmental labour system in a phased manner or absorb their services in other establishments as recommended by the HLC.
"Labourers in FCI had very aggressive tendencies and in the past, officers have been murdered," the bench observed.
"It's like a golden egg being a labourer in FCI. There is something seriously wrong," the bench said and asked Solicitor General Ranjit Kumar to take instruction from the Government "as to the steps taken in tune with the high court order."

It said departmental labourers were earning Rs 79,000 per month on an average. "Do you want this to continue? Those who are engaged in loading and unloading business of sacks are privileged. You are earning more than a gazetted officer," the bench further said.
"We would like to know what Government of India is doing," the bench said, referring to the FCI's representation for grant of exemption under Section 31 of Contract Law Act, 1970.
The bench said it was giving credence to the HLC report as the members in the Committee were not from private agencies but "there are all eminent people and management experts."

"High level committee report talks about the malpractices. The system is wholly unsatisfactory," the bench said and made remarks about the "pathetic state of affairs" in FCI facilities to store foodgrains and other products.
"There has been a case of no storage capacity which is going for years. Surplus food products are kept in open. Distribute it if it can't be stored as former judge of this court Justice Dalvir Bhandari had said.
"Grains are kept outside. Rodents are eating away the foodgrains. Foodgrains are going into the drains," the bench said.