KAZ NEWS DESK
SRINAGAR, Aug 5: A multi-crore scam has surfaced in the Public Distribution System (PDS) of food grains where over Rs 40 crore has been siphoned off by the officials of the Food Corporation of India (FCI) and Department of Food, Civil
Supplies and Consumer Affairs in league with Jammu and Kashmir State Road Transport Corporation (JKSRTC).
A transport company – M/s Ladakh Road Lines – with some Government officials as silent partners and having dubious record has been given contract by the SRTC without any tendering process leading to loss of crores of rupees to the State exchequer.
A report by the Crime Branch (PV No 22/2013 PS Crime Branch Jammu (01/15)) reveals that the SRTC gave contract to M/S Ladakh Road Lines for one month in 2008 and later extended it for whole year 2008-2009 without any tendering process and without fixing commission of the SRTC. “Not only this, the Corporation extended the contract to the firm (JKSRTC/GML /20 dated 10-07-2009) for one more year (2009-2010) without issuing tenders. The contractor was given the payment for 2009-2010 without executing the agreement”, read the report.
The investigation agency pointed out that M/s Ladakh Road Lines was awarded the contract for 2012-2014 for quoting the highest rate of Commission of 37.10 percent when the commission rate of the Corporation for the previous year was 11.5 percent only.
However, the Firm later withdrew the contract and SRTC cancelled the tender, called for re-tender and forfeited earnest money furnished by the M/s Ladakh Road Lines. The firm again got the tender and the SRTC settled its commission at 18.5 percent for 2012-2014, resulting the losses to the tune of crores of rupees.
The agency pointed out that Corporation allowed M/s Ladakh Road Lines to participate in the tendering process again despite the fact that its earnest money/Security Deposit was forfeited by the JKSTRC (Order No. JKSTRC/GML/CHT/496 dated 10-07-2012).
The probe has also established that the Corporation illegally and fraudulently released Rs 3.78 crore to M/s Rah Motors when the firm was not approved contractor with the SRTC for the financial year 2008-2009 and 2009-2010.
The Central Vigilance Committee report on Public Distribution System has also found that the tendering process was not followed and a particular company was given tenders. Sources said that few Government officers are silent partners of M/s Ladakh Road Lines and M/s Vikas Road Transportation.
Sources said that the Food Corporation of India officials in Jammu and Kashmir, Department of Food, Civil Supplies and Consumer Affairs in league with the SRTC officials are involved in the scam. Now the Vice Chairman of the JKSRTC has constituted a committee of 5 members to conduct enquiry into the case of mismanagement of handling and transportation of food-grains which has resulted in misappropriation of funds and siphoning of food-grains worth Rs 40.29 crore.
The traffic manager (Load) of the Corporation has informed to the head of the Corporation that still there are 99 trips performed by transport company M/s Ladakh Road Lines which have not been cleared and are under verification.
The inquiry order also admitted that officers of the Corporation (JKSRTC) misled the Chairman of the Corporation by way of hiding factual position of the case which indicates that Corporation is also involved in the mismanagement and siphoning of funds.
The five member team of enquiry comprising Financial advisor and CAO (JKSRTC) as its chairman, General Manager (Load) as its member, General Manager (Administration), as its member, DAO-SRTC as its member and Traffic Manager (City services) as its member have been asked to report along with the recommendations within a period of seven days positively in this regard.
And M/s Haji Goods Carrier (silent partner of Ladakh Road Lines), in the meantime, has lodged a complaint wherein he has claimed that challans of Rs 10 to Rs 12 crore of erring contractor are lying with him which have been kept unattended after dispute arose between them.
The silent partner of erring Transport Company has approached the Court through its advocate Zahoor Ahmad Shah by way of a writ petition and the High Court while considering it on 27.7.17 directed that no payment shall be released in favour of Ladakh Road Lines.
Silent partner of Ladakh Road Lines submitted before the Court that a direction be issued to the officials to initiate appropriate action against all officials who have been indicted by Central Vigilance Organization in its report and recovery proceedings initiated against the erring contractor on account of pending challans and till then no payment be released in favour of the transport company.
