Nifty99000 100%

Sensex99000 100%

Article rating: No rating
Article rating: No rating
Article rating: No rating
Article rating: No rating
Article rating: No rating
Article rating: No rating
Article rating: No rating
Article rating: 4.0
Article rating: No rating
Article rating: 4.0
Article rating: No rating
Article rating: 4.0
Article rating: No rating
Article rating: No rating
Article rating: No rating
Article rating: No rating
RSS

News

FCI let over 4 lakh tonne wheat rot away: CAG

Author: IANS/Saturday, August 5, 2017/Categories: Agri & Fertiliser

FCI let over 4 lakh tonne wheat rot away: CAG

New Delhi - The Comptroller and Auditor General (CAG) has picked holes in the functioning of Food Corporation of India (FCI) in 2015-16, citing fraudulent payments and spoilage of 4.72 lakh tonnes of wheat worth Rs 700.30 crore.

In its report that was tabled in Parliament on August 4, the CAG said "fraudulent excess payments of Rs 14.73 lakh and Rs 37.89 lakh" were made to the transport contractors in the northeast "on account of payment on higher rate and for bills for longer distance than actual for transportation of food grains".

The CAG also said that the FCI sold wheat to bulk consumers at a rate below cost under open market sale scheme during 2013-14, which led to non-recovery to the tune of Rs 38.99 crore.

Also, the corporation made excess payment of Rs 24.96 crore to the Uttar Pradesh government and its agencies on account of cost of gunny bags and gunny depreciation for procurement of paddy and delivery of rice during 2014-15 kharif season, the watchdog pointed out.

"FCI recovered Rs 2.96 crore after audit pointed out the excess payment and recovery of the balance Rs 22.00 crore was yet to be made," it said.

The audit watchdog also found out that substantial quantity of food grains was lying in open areas with the state government so about 4.72 lakh tonnes of wheat worth Rs 700.30 crore deteriorated and was declared as non-issuable to Targeted Public Distribution Scheme. 

The FCI had to borrow from costlier means of finance such as cash credit, short term loans after the subsidy it received from the government just 67% of the subsidy claimed during 2011-16. 

It resulted in heavy interest burden of Rs 35,701.81 crore during 2011-16, the CAG said.

It also highlighted discrepancies such as contracts to ineligible, bidders were awarded contracts for construction of godowns, undue benefit, higher handling cost and incorrect measurement of distance by Punjab Grains Procurement Corporation Limited (PUNGRAIN) and FCI, deployment of costlier labour, all these resulted in excess expenditure.

Print Rate this article:
No rating

Number of views (300)/Comments (0)

S Vijaykrishnan
S Vijaykrishnan

IANS

Other posts by IANS
Contact author

Leave a comment

Name:
Email:
Comment:
Add comment

Name:
Email:
Subject:
Message:
x

Videos

Ask the Finapolis.

I'm not a robot
 
Dharmendra Satpathy
Col. Sanjeev Govila (retd)
Hum Fauji Investments
 
The Finapolis' expert answers your queries on investments, taxation and personal finance. Want advice? Submit your Question above
Want to Invest
 
 

Categories

Disclaimer

The technical studies / analysis discussed here can be at odds with our fundamental views / analysis. The information and views presented in this report are prepared by Karvy Consultants Limited. The information contained herein is based on our analysis and upon sources that we consider reliable. We, however, do not vouch for the accuracy or the completeness thereof. This material is for personal information and we are not responsible for any loss incurred based upon it. The investments discussed or recommended in this report may not be suitable for all investors. Investors must make their own investment decisions based on their specific investment objectives and financial position and using such independent advice, as they believe necessary. While acting upon any information or analysis mentioned in this report, investors may please note that neither Karvy nor Karvy Consultants nor any person connected with any associate companies of Karvy accepts any liability arising from the use of this information and views mentioned in this document. The author, directors and other employees of Karvy and its affiliates may hold long or short positions in the above mentioned companies from time to time. Every employee of Karvy and its associate companies is required to disclose his/her individual stock holdings and details of trades, if any, that they undertake. The team rendering corporate analysis and investment recommendations are restricted in purchasing/selling of shares or other securities till such a time this recommendation has either been displayed or has been forwarded to clients of Karvy. All employees are further restricted to place orders only through Karvy Consultants Ltd. This report is intended for a restricted audience and we are not soliciting any action based on it. Neither the information nor any opinion expressed herein constitutes an offer or an invitation to make an offer, to buy or sell any securities, or any options, futures or other derivatives related to such securities.

Subscribe For Free

Get the e-paper free