Sunday, November 21, 2010

Four vidarbha farmers suicides reported as new chief minister takes the charge :the review of relief packages is hoax as per CAG and PAC Reports

Four vidarbha farmers suicides reported as new chief minister takes the charge :the review of relief packages is hoax as per CAG and PAC Reports massive corruption in it .

Nagpur -21-11-2010

When maharashtra new chief minister was taking task of situation in first cabinet in iar-conditioned hall in Mumbai Mantralaya hall same time four more debt ridden and drought hit farmers were killing themselves in vidarbha due to despair and distress in the on going agrarian crisis even Chief Minister was directing his ministers to review relief packages given in year 2005 to 2008 which are as per report of CAG , PAC and C.I.B. totally fialed and maximum amount tuning to Rs.5000 crore has been siphoned out by Ministers,Babus and contractors and as MOS in PMO Pravthiraj Chavan is completely aware of facts and involved in undue delay in C.B.I. enquiries in relief package irregularities ,

Recent victims of vidarbha agrarian crisis on the day of chief minister taking the charge are-

1.venkaiyya sunkawar of rudha in yavatmal

2.ganesh tayade of borala in buldhana

3.laxman gailwad of deulgoanraja in buldhana

4.sopan padole of gudegoan in bhandara

Taking toll to 670 farmers suicides in year 2010 Kishor Tiwari of Vidarbha Janandolan Samiti(VJAS )informed in press release today.

‘we are shocked to the news of review of packages which are awaiting fresh fund since last 18 months and proposal Rs.5760 crore is already peanding with central Govt. and all reports CAG , PAC and C.I.B were lying in PMO awaiting the order of C.B.I probe whne our chief minister was in charge of the same as MOS in PMO .the main man behind mega irrigation scams of prime minister relief package A.I.B.P. fund is NCP minister Ajitdada Pawar and now he is deputy chief minister and in commanding situation then who can do the review of such political sponsored mega corruption hence new chief minister should come to ground reality’ Kishor Tiwari added in press note

Here are reports releted to corruption in relief package on CAG and PAC reports


CAG report slams Vidarbha relief package

The Comptroller and Auditor General's audit of relief packages for Vidarbha's farmers finds that they were tardy in implementation, mindless in conceptualization and "inconsistent with local need

What was meant to be an aid for farmers has proved to be a bonanza for the government babus and contractors - a feast in breakfast and supper. The Rs.5075-crores special relief packages announced a few years back by the chief minister and prime minister for beleaguered Vidarbha farmers have flopped, expectedly.

The CAG's performance audit of farmers' packages finds that not only were the packages tardy in implementation, but also mindless in conceptualisation and "inconsistent with local needs." Result: The money did not help mitigate the gargantuan agrarian crisis or even reduce farmers' suicides.The CAG report trashes the claims of the government that the packages were highly successful in mitigating the agrarian crisis. Contrarily, it finds holes in it.The Government of Maharashtra tabled the report on the last day of the budget session of the legislature on 27 April 27 skirting any debate on the failure.

Most importantly, the CAG found that the return on investment (RoI) of a typical crisis-ridden farmer in Vidarbha was minus two per cent before the implementation of packages. A farmer was in loss the day he went for sowing. The RoI shot up to seven per cent in the first year, dwindled to five in the second year and stands at two per cent in the third year of its implementation. The positive RoI was on account of moratorium on loan and interest recovery.What it means is that effectively, a farmer was in losses before packages and remains so all through the package-implementation years - a reflection of which would be seen this year when the moratorium is lifted.

That, say sources, is the real face of the crisis - the abysmal income of farmers if one compares these with the per capita income of the rest of the state.In CAG's evaluation, "the possibility that agrarian distress essentially caused by un-remunerative agriculture would start rising again in the closing years of the package (2008-09)." It warns that distress could increase significantly after the expiry of the moratorium on loan recovery, which is June 2008.

"Farmers' suicides shot up dramatically even when the two packages were in vogue," the report acknowledges.One of the important deficiencies of the packages, as the CAG found out, was the fact that the funds spent did not improve agricultural support prices. In its observation, the implementation of recommendations of the Fact Finding Committee (of Planning Commission of India) could have helped in reduction of farmers' distress and the consequent suicides.

The Committee had recommended in March 2006, over two years ago, shortly after its visits to the region, that the minimum support price for agriculture crops should carry appropriate variation for the region so that it reflected the actual input cost and was not an estimated figure.Despite this, observes the CAG, the MSP for the four major crops of the region - cotton, soybean, pulses and paddy - declared by the Government of India during the years 2003-06 was 29-38 per cent less than the MSPs proposed by the state agriculture price committee (SAPC) of Maharashtra Government. During 2006-07, the MSP was 31 to 40 per cent less than that proposed by the SAPC.

Banks no different than shylocks

While there is much brouhaha over shylockian moneylenders exploiting the beleaguered farmers in Vidarbha, the CAG audit report finds cooperative and nationalised banks are no different.Castigating the cooperative and nationalised banks for levying huge interests on crop loans, the CAG report found that the banks not only levied interest more than the principle amount to the tune of Rs.29 crores, but also wrongly claimed it in waiver in six affected districts.

For instance, the seven branches of district central cooperative (DCC) bank test-checked by CAG's surveyors had levied an interest of Rs.5.13 crores as against principal of Rs.3.19 crores, resulting in excess claim of Rs.1.94 crores.That's not all. The CAG found that the DCC banks and rural cooperative societies charged an interest at the rate of 17 per cent per annum instead of 14 per cent in over four lakh accounts involving principal amount of Rs 514.64 crores. The excess claim of interest of three per cent per annum works out to Rs 15.44 crores, it says.

Importantly, the CAG says farmers did not benefit from interest waiver. For, their incomes did not augment in any way.The state government had in its Rs.1075-crores package in 2005 December waived interest on crop loans up to Rs.25,000 taken by farmers of six districts from all DCC, national and rural banks. The government only considered outstanding loans as on 30 November 2005. These were to be rescheduled at 9 per cent interest repayable in three equal annual installments with a two-year moratorium period. The moratorium period ended with the 2007 fiscal year.

Coming next, the PM's package had waived interest on all agricultural loans overdue as on June 2006 and rescheduled the loans.Banks then claimed a total interest waiver of Rs 824.99 crores, with the state's share being Rs.356 crores.

Also in 2006, 9.29 lakh farmers (out of 17.64 lakh) got institutional credit, up from around 4 lakh farmers the previous year. The banks processed interest waivers for farmers in those many bank accounts as part of relief. But when it came to extending fresh loans, they did this only to 48 per cent of the 9.29 loan accounts. The CAG pointed this out, and said that the banks should have extended loans to all these farmers, which was intended in the PM's relief package, but that was not followed by the banks.

So the actual loan outlay in rupee terms too declined with the number of farmers getting formal credit. The CAG noted that fresh crop loan disbursement actually dipped to Rs.673.88 crores (4.84 lakh cases) in 2007 from Rs.1369.85 crore (to 9.29 lakh farmers) in 2006, when prime minister Manmohan Singh announced the package in Nagpur.

The CAG report curiously quotes the Principal Secretary, Cooperation, without recording the name of official, as having replied to a query pertaining to decline in the number of fresh loan cases. While the official said that 1,92,745 borrowers were landless farm workers who did not require any crop loan, the CAG says that for these farmers, the banks faultily extended them crop loans.

Also, in a number of other cases, the CAG found the extension of the loan relief package was unnecessary and not in keeping with the terms of relief -- 26,400 borrowers had died, 25,129 farmers had sold their land (in that year), 21,125 had left villages and 30,715 did not require any loan. The 62,807 cases were marred by disputes of lack of essential documents while in 85,975 cases the farmers had long-term loans.

Furthermore, the CAG report states that the government's ban on illegal money lending did not stand before the High Court in October 2006. The government neither appealed against these orders (in the Supreme Court) nor took any remedial action like amendment of the relevant Acts, such as the Bombay Money Lending Act. Consequently, the affected farmers, who had lost their lands to the moneylenders, did not get any benefit. The money-lending law may be re-examined in the light of decisions by High Court, the CAG has recommended.

Micro-irrigation compliance issues could worsen crisis

The CAG report found serious problems with the micro-irrigation and assured irrigation projects worth over Rs.2300 crores in the packages. The PM's package has a component of Rs.2177 crores to create irrigation potential for 1.6 lakh hectares in six suicide-prone districts. Of this, Rs.2085.38 crores was to fund eight major, nine medium and 65 minor irrigation projects as grant from the Centre.

However, in December 2006, the Government of India revised the eligibility criteria for funding. According to this, if the state government fails to comply with the agreed date of completion, the amount released would be treated as loan and recovered as per usual terms of central loan recovery.

The CAG report states that the possibility of completion of projects within the stipulated time is remote. "This presents the risk of Rs 2085.38 crore (or 56 per cent of total package amount) becoming loan instead of grant."

Public Accounts Committee (PAC) reports massive corruption in Rs.3750/- crore Prime Minister Relief Package for distressed vidarbha farmers- VJAS demands stern action all erring officers

Nagpur -16th November 2009

The 15th report of Public accounts committee (PAC) tabled in Maharashtra legislative assembly on 11th November by PAC chairman BJP MLA Girish Bapat from Pune has pointed out that the massive corruption in the in Rs.3750/- Prime Minister Relief Package for distressed vidarbha farmers resulted in it’s failure and also suggested very stern action under Indian penal code against all erring officers involved in the implementation of relief packages announced to stop farmers suicides in western vidarbha, Kishore tiwari of Vidarbha Janandolan Samiti (VJAS), informed today

Public accounts committee (PAC) has asked for Action Taken Report (ATR) to be submitted in winter session of legislative assembly starting from 8th December in Nagpur .The 15th report of Public accounts committee (PAC) has blamed irrigation department ,agriculture department and co-operative banks for siphoning out thousands crore by the complete understanding of concern ministers and executives in the top end of govt. in Mantralaya.

some of officers who was involved in irregularities and corruption of thousand crore has taken voluntary retirement from state Govt. service with due consent of concern minister .all contract or supply order of relief work and materials was fabricated and most of the money was diverted to the ministers, contractors and officers even after PAC asked for immediate action till date there is no action against the officers or the banks ,PAC report added.

The 15th report of Public accounts committee (PAC) has expressed shock and displeasure over the extreme apathy of executive to provide ex-gratis aid to kin of deceased farmers .In some cases bribe was demanded from kin of deceased farmers who committed suicide to make illegible for the aid .this is sheer apathy and indicates inefficient functionary in administration , Public accounts committee (PAC) said in the report.

Public accounts committee (PAC) has asked Govt. to arrange for the detail probe in all cases of irregularities and malpractices in relief packages and in providing ex-gratia and to take stringent action against those already found guilty.ATR should be submitted to Public accounts committee (PAC),it recommended.

Vidarbha Janandolan Samiti (VJAS),farmers advocacy group who have already lodged complaints aginst on going massive corruption in farmers relief packages ,now urged Govt. to tale stern action against all concern ministers and officers involved in the corruption, Kishore tiwari of Vidarbha Janandolan Samiti (VJAS), informed today.


“if maharashtra Govt. is very serious to address agrarian crisis of vidarbha then he should first implementation of recommendations Jadhav panel of giving food security and health care and proper credit to more than a million distress who dying without aid since 2005 ’Tiwai urged

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