The dust has barely settled on the choppergate while another scam has come to haunt the Congress-led United Progressive Alliance (UPA) government. This time it is the largest loan waiver of 2008 meant for farmers reeling under debt.
A report of the Comptroller and Auditor General (CAG) tabled in Parliament on Tuesday has found serious lapses and inconsistencies in the implementation of the over Rs 71,500-crore scheme.
Severe inadequacies were found on the part of the monitoring authorities under which the Centre has so far waived loans of Rs 52,000 crore related to approximately 3.45 crore small, marginal and other farmers, the report said.
A review carried out in 25 states has found that out of 90,576 cases, there were lapses in 20,216. Around Rs 164 crore was waived in violation of guidelines, the report pointed out about the scheme touted as UPA’s 2008 game changer which helped in winning the election a year later.
“In most cases, the eligible farmers were deprived of their rightful benefits while ineligible farmers were extended benefits under the scheme as the lending institutions did not prepare a correct list of beneficiaries,” the report highlighted.
According to the report, in nine states, including Chhattisgarh, Madhya Pradesh, Odisha, Rajasthan, Tripura and Kerala, at least 1,257 accounts were found to be eligible for Rs 3.58 crore under the scheme, but were not considered by the lending institutions while preparing the list.
The audit also found that in Punjab, Manipur and Rajasthan, at least 183 beneficiaries were denied benefits totalling Rs 21.30 lakh under the scheme although their names appeared in the list of beneficiaries. According to the report, the largest number of beneficiaries, totalling 176, who were denied loans belonged to Punjab.
Loans were also disbursed for the purpose other than agriculture. For example, personal loans, loans for vehicles, business, purchase of shop or land were handed out to people from the sum allotted for loan waiver, the report said.
Besides, the report said the micro finance institutions (MFIs) were given the benefit under the scheme in violation of the debt waiver guidelines. The banks claimed undue benefits like penal interest, legal charges, miscellaneous charges from the government, although they were supposed to bear these charges themselves.
The CAG has also criticised the Department of Financial Services (DFS) in the Finance Ministry for deficient monitoring and suggested the DFS take steps to review beneficiary lists focusing on those states where indebtedness was high.
“Bank officials, internal auditors and central statutory auditors, who certified the information for passing the claims, ought to be made accountable for lapses in performing their duties,” the CAG recommended. It has also suggested the DFS to take stringent action against erring officials and banks.
The Congress defended itself with Union Finance Minister P Chidambaram saying that it was merely a banking irregularity, while the BJP demanded a CBI inquiry.
“After CWG, 2G, coalgate, choppergate, now it is farmers’ loan waiver scam. Undeserving people are getting benefit at the cost of the state exchequer,” BJP spokesperson Prakash Javadekar said.
The BJP also demanded that deserving farmers be immediately given cash to write off their loans before March 31.
Shortcomings
-Total scheme worth Rs 71,500 crore
- Loans worth Rs 52,000 crore waived
-In 9 states, 1,257 eligible farmers not considered
- Rs 164 crore waived in violation of rules
- 183 beneficiaries denied waiver although enlisted for the scheme
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