Excelsior Correspondent
Srinagar, Aug 23: The High Court directed for completion of inquiry with regard to multi-crore scam of food grains in the Public Distribution System (PDS).
The scam has surfaced in PDS 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).
Court has directed the authorities to look into the complaint filed by a transport company M/s Haji Goods Carrier and conclude the inquiry logically. “It is hoped that the complaint will be looked into with zeal and zest. It is also expected that the complaint of the petitioner shall be looked into and the inquiry shall be logically concluded”, court of Justice M K Hanjura directed.
Court also said that the company has not brought it to the fore, in any manner that the award of contract by the JKSRTC to M/s Ladakh Road Lines was contrary to public interest or that it was unreasonable or discriminatory except for the fact that Central Vigilance Organization (CVO) has indicted the Road Transport Corporation and his complaint has not been proceeded.
Referring the Supreme Court Ruling on prerogative of Government while dealing with the tender process Court said, the law is that the Government and its undertakings, originally, have a free hand in detailing the terms of the tender.
Court, however, made it clear that it is only if they smell of arbitrariness, discrimination, malafides or bias that the Courts come to the fore and interfere in such actions.
Report of Crime Branch (PV No 22/2013 PS Crime Branch Jammu (01/15)) also revealed 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.
CB report further said that 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.
The probe in to the matter also established that the Corporation illegally and fraudulently released Rs 3.78 crore to M/s Rah Motors when the firm was not approved contract 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.
It may be mentioned here that 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 in this regard also 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 indicate 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.
M/s Haji Goods Carrier was seeking 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.
The company stated before the court that M/s. Ladakh Road Lines, has admitted the pendency of challans having not been submitted by them and despite that they claim the release of Rs. 12 crores, without taking into account the loss caused to the State exchequer.
In this regard complaint has been acknowledged by the officials but they have not initiated any action into it and as a consequence thereof, the public money will go down the drains.
This is being done, petitioner submitted, in collaboration with some higher ups and the Central Vigilance Organization has indicted the JKSRTC and M/s Ladakh Road Lines for having committed various acts of serious nature that has caused huge loss to the State exchequer and there has been a total failure on the part of the authorities, who are at the helm of affairs of JKSRTC and thereby they have failed to protect the State exchequer.
Justice Hanjura while taking into account the arguments of both parties observed that the first question that requires to be considered is whether the writ of prohibition can be issued in the facts and circumstances of this petition. “The answer to this question is an emphatic “No”, in view of the law laid down in a catena of judicial pronouncements, for the convenience of ready reference”, court said.
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