Govt denies nod to CBI to probe officers in rice export issue

The government has denied permission to the CBI to investigate nine Board level officers in PSUs, including STC, MMTC and PEC, for alleged irregularities in export of rice to African countries, the Parliament was informed today.
"A well considered decision was taken in February 2013 that since no misconduct of criminal nature has been established in these (departmental) inquiries, it would not be fit to give permission to CBI to for initiating investigation against the concerned officers of STC, MMTC and PEC," Minister of State for Commerce E M S Natchiappan said in Rajya Sabha.
"CBI has also sought permission for initiating criminal investigation under Section 6A of DSPE Act, 1946 against 9 Board level officers of the aforesaid PSUs. CBI was requested to clarify if it had any prima facie evidence to establish the need for a criminal investigation. CBI replied that no preliminary inquiry had been done by it," he added.

The government had banned export of non-basmati rice in October 2007 in the wake of escalating prices in the domestic market. However, on diplomatic ground, it allowed export of limited quantity to some African and the least developed countries.
Post the government approval for rice exports, instead of PSUs like Metals and Minerals Trading Corporation (MMTC), State Trading Corporation (STC), and Project and Equipment Corporation of India (PEC) exporting them, private firms named by African countries were allowed to procure and ship rice.
This allegedly led to multiple violations and huge profits pocketed by private exporters.
The Commerce Ministry took action for blacklisting the three private sector firms involved in these transactions.