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Misappropriation, frauds galore in CAPD: CAG
7/9/2016 12:13:01 AM
Saqib Junaid
Early Times Report

SRINAGAR, July 8: A massive scam has surfaced in the consumer affairs and public distribution department with the Comptroller and Auditor General of India having identified the frauds and manipulations done by department officials in selling wheat bran to the millers resulting in a heavy loss worth crores of rupees.
In its latest report, the CAG report says that CAPD department had sold 2.06 lakh quintals of wheat bran to the millers during the period from April 2013 to March 2015, Considering the fact that in Srinagar rates were fixed at Rs 1500 per quintal in March 2013, the department as per the report sustained loss of Rs 15.45 crore on sale of 2.06 quintals of wheat bran at old rates Rs 750.
"Thus non-competitive administered pricing mechanism of sale rates and non-revision of sale rates of wheat bran for over seven years resulted in loss of Rs 15.45 crore and consequent undue favour to the mill owners of the state," it says.
Further, the report states that department was responsible for deteriorating the ration in its godowns resulting a heavy loss worth crores of rupees to the department.
Records of Assistant Baramulla showed that 1463 MTs of food grains Rs 1.26 crore lying at Hygan Granary (787 MTs) and Krankshivan Sopore stores (676 MTs) in the district had deteriorated. Audit noticed that the deterioration of food grains was caused due to low off take of PDS food grains. "Responsibility for the loss due to deterioration of food grains had not been fixed."
619.38 quintal sugar valuing was found deteriorated November 2013 in Gulab Bagh godown.
Audit scrutiny showed that the eligibility clause of Agmark certification which had direct aberrance on the quality of sugar was removed during the process of finalization of rate contract for supply of sugar.
The department stated in September 2014 that payments had been authorized on receipt of test certificate issued by the food analyst of respective municipal corporations. "The reply is not convincing as quality of sugar procured was not ensured as per the prescribed parameters of the specifications."
Audit scrutiny of records showed that selection of mills for grinding of wheat was done during 2010-15 from among the mills empanelled in the year 2007. "No empanelment by way of open tendering system had been carried out during 2008-15."
The report says that CAPD department has not maintained proper records at Srinagar-Jammu. "Nonexistence of internal control to record transactions related to lifting, dispatches and distribution of food grains is fraught with the risk of misappropriation and frauds remain undetected."
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