The National Handloom Development Corporation has referred to the CBI a case related to alleged embezzlement of funds meant for the supply of yarn, after an internal probe indicated 'irregularities' worth around Rs 200 crore, a top official said.
The matter been referred to the CBI by NHDC as it found some transactions which may have taken place without the yarn being distributed.
Singh said the matter may have its roots in other states even though the problem has until now been reported in Lucknow region and Greater Noida.
The textiles secretary said the CBI has been handed over the case as the central probe agency has expertise on such issues.
E-mails sent to the top management of National Handloom Development Corporation (NHDC), a PSU under the Textiles Ministry, did not elicit any immediate response.
"In the meantime, NHDC has suspended three employees and instituted a departmental inquiry on the matter," Singh said, adding that the public sector undertaking (PSU) has been asked to make sure that weavers do not suffer.
On National Handloom Day yesterday, hundreds of weavers held protests at the NHDC headquarters in Greater Noida, demanding payment of outstanding dues and resumption of yarn supply.
Protestors claimed that lakhs of weavers from Uttar Pradesh and Uttarakhand are affected as they have not been paid outstanding dues in the current financial year, whereas several have lost their jobs due to stoppage of yarn supply.
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