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Red card's scam comes to light in Bihar

Red card's scam comes to light in Bihar

Author: Ajay Kumar
Publication: The Indian Express
Date: May 11, 2006

Introduction: In Rs 1,400 cr scam,

A Major seam to the tune of over Rs 1,400 crore, relating to the alleged misuse of subsidised rations and short supply of foodgrains meant for people below the poverty line during the erstwhile RJD rule in Bihar, has come to light.

Documents accessed by this correspondent show that over 21 lakh people who were issued special ration cards by authorities were, following a review of the below poverty line (BPL) list, made ineligible for the scheme.

The papers-gathered from the state food department, Economic Offences Wing (EOW) of the Crime Investigation Department (CID) and the Vigilance Investigation Bureau-showed that the food department had, on September 4, 2000, admitted in an official communication to the EOW that it had reviewed the BPL list between 1998 and 2000, and struck off over 21 lakh non-BPL beneficiaries from among 61 lakh "red card holders".

The food department also admitted to the EOW that exactly the same number of beneficiaries were later included in the list.

By March 31, 2001, it was established by the food department that 21,00,226 red cards were distributed to non-BPL beneficiaries and that they had lifted subsidised rations using the cards. The cost of these rations was put at Rs 300 crore.

The short supply of foodgrains to the poor with red cards was projected at Rs 146 crore. According to the EOW, the total cost of the lost opportunity to the poor in respect of the scheme alone came to about Rs 1000 crore, according to the documents.

Several district officials, including some magistrates and supply officers-who were allegedly involved in implementing the scheme five years ago-have recently denied they made a survey and eliminated the non-beneficiaries from the BPL list.

The food department too, in an official note sent in reply to enquires by the comptroller and auditor general of India, has admitted it was unable to specify on what basis the 21 lakh names were excluded and then again included in the list.

Food department officials are now spending sleepless nights following enquiries about the issuing of 21 lakh "imaginary cards", said a top state official on condition of anonymity.

Auditors have asked the food department to clarify the veracity of red cards that were excluded and then subsequently re-added to the BPL list.

Sources said a former food secretary, who was transferred as managing director of the Bihar State Cooperative Bank a fortnight ago, had recommended action against 40 officers including some district magistrates, but the files are gathering dust.

They also alleged that while senior officials in the food department had not been touched, "smaller fry" were facing the music as the Bihar Vigilance Bureau had failed to act against those who were major players in the seam.

"The real culprits of this huge miscarriage of subsidised rations and short sup foodgrains can only be established through an investigation, but this seems prima facie to be a case of an abject disorder in the system," said a senior official.

According to the documents, the state government had directed vigilance authorities to probe the large-scale pilferage of subsidised foodgrains meant for holders of red cards, but the Vigilance Department has been apparently deliberating the matter since 1999, and expressed reservations about investigating a matter that involved the verification of such a large number of red cards.

The food cell of the EOW, which is statutorily obliged to look into such matters, has registered 36 cases after extensive investigations.

As per the documents, though the EOW had been reporting the blatant misuse of the red card scheme since 1998 and had offered to conduct a survey to apprise the government of the exact percentage of bogus and fictitious cards, the food department, and later the director general of police, had turned down the proposal.
The EOW, however, made an informed estimate of the misuse of the cards and apprised the then chief secretary of the gravity of the matter.

When the then inspector general of EOW, Manoje Nath-he is currently the additional director general of Bihar military police-cried foul over the issue, the government looked the other way, sources said.


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