Punjab Government in eye of storm over missing food stocks worth Rs.12000 Cr

CHANDIGARH : Punjab Government is in the eye of storm over missing stocks of food grains worth Rs.12,000 crores. The state government allegedly took the loan (cash credit) from banks for purchase of food grains but funds were not used for the purpose it was taken. The money has either been embezzlled or diverted to some other account, the media reports said. Punjab Government has however denied the allegations and asserted there was no disappearance of stocks as slated in a section of the media and that all food-grains procured over the years have been duly accounted for and handed over to the FCI, through well-documented audited transactions. The opposition is targeting Chief Minister Parkash Singh Badal and his son Deputy Chief Minister Sukhbir Singh Badal for the scam.
The Reserve Bank of India reported to have written to Punjab Government to submit the previous accounts of food grain procurement to get fresh cash credit limit of Rs.20,000 for the paddy procurement. The paddy procurement season has started on April 1 and about 10 percent of paddy crop has already arrived in mandis. However state government has no funds to make payment to farmers.
The Cash credit limit is approved by Reserve Bank of India and a consortium of banks headed by State Bank of India sanction the required funds. Punjab Government had submitted the stock status report to the center citing various reasons for gap between the procurement done by state agencies and the stocks available in the godowns.
According to a report in The Economic Times, the RBI has asked the banks to classify Rs.12,000 as bad loans given to Punjab. The RBI found that food grains worth Rs.12,000 have vanished from godowns or money was direcrted and not used for procurement of food grains.
According to the Director Food and Civil Supplies – Mr Shivdular Singh Dhillon all payments are released by FCI directly to the bank without recourse to the State, after receipt of stocks and as per the specification fixed by GOI. These deliveries are dependent on the schedule fixed by FCI from time to time as per demand in various parts of the country. He asserted that all the queries raised by FCI have been satisfactorily answered by the Punjab government. Mr Shivdular Dhillon said funds availed by the State government on account of Food Credit Limits have been utilised for food procurement operations, in the National Interest. There has been no misutilisation of funds. The differential amount is on account of difference between claims and amounts received.
The political parties like AAP and Congress have raised hue and cry over the food grain scam and demanded a high level probe under the supervision of Supreme Court. PPCC President Capt Amarinder Singh has described it only a tip of the iceberg. He demanded to dismiss the SAD-BJP government. AAP MP Bhagwant Mann said that the farmers of Punjab would be victims of food grain scam done by Parkash Singh Badal government. He said that AAP was worried that farmers would not get the payment for their crop, if banks refused to extend the cash credit limit.