Fertilizer scam in UPA-2 by DMK MP Alagiri

Discussion in 'Politics & Society' started by sasi, Jan 21, 2013.

  1. sasi

    sasi Senior Member Senior Member

    Joined:
    Nov 18, 2012
    Messages:
    3,401
    Likes Received:
    1,679
    Location:
    India
    Both PMO and his UPA collegues know abt it. Initial loss 1000cr. -HT Tv report.
    ~
    Wait sometime for link, report just reported.
     
  2.  
  3. sasi

    sasi Senior Member Senior Member

    Joined:
    Nov 18, 2012
    Messages:
    3,401
    Likes Received:
    1,679
    Location:
    India
    Now scam in fertiliser ministry? Prices, subsidy rise simultaneously, but Alagiri ignores his junior minister's warnings : North, News - India Today
    Even as DMK leader A. Raja was allegedly the brainchild behind one of the country's biggest scams through preferential allocation of scarce 2G spectrum, yet another party leader seems tobe going his way to shame Prime Minister Manmohan Singh being a part of the latter's Cabinet.
    A special investigation by Headlines Today has revealedthat Minister of Chemicals and Fertilisers M.K. Alagiri overlooked a series of controversial decisions taken by his ministry, leading to a huge loss to the exchequer due to the gross misuse of central subsidy.
    Though a junior minister repeatedly red-flagged these irregularities in the ministry, his boss refused to acknowledge it.
    Why subsidies and prices rose simultaneously?
    At the heart of this Headlines Today investigation is willful neglect on part of Alagiri, who also happens to be the son ofDMK chief M. Karunanidhi, as officials in his ministry allowedprivate companies windfall gains at the cost of farmers. The mandarins and manufacturers together ensured market prices of fertilisers remain beyond the reach of ordinary farmers.
    At a more macro level, the investigation laid bare the reason why subsidies failed toreach the targeted masses even as these doles continue to disfigure the fiscal deficit and edge Indian economy closer to a ratings downgrade.
    The UPA-2 regime saw a 10-fold increase in the fertiliser subsidy bill. But the price at which fertilisers are sold to farmers has been escalating at a staggering pace. Fertilisers have now become prohibitively expensive for farmers causing widespread distress in rural areas.
    Junior minister's objections
    The issue of ongoing loot in the fertiliser sector was brought to Alagiri's notice by his junior Srikant Jena through repeated internal notes. A portion of one of at least five such notes, written between March and August 2012, says: "companies have made extremely high profits…this has led to undue gain in the industry."
    These notes highlight the issues of patent profiteering and pocketing of farmers' subsidy by fertiliser manufacturers. However, on each occasion Alagiri chose to ignore Jena's note. Forget taking the necessary measures to put a stop to the loot and improve the farmers' plight, Alagiri did not even deem it necessary to acknowledge these notes.
    On July 17, 2012, Jena wrote:"The government has been releasing subsidy for the benefit of farmers so that the retail prices remain at reasonable levels and there is no runaway increase in retail prices. The decontrol in retail prices does not imply that the companies are at their free will to gain undue profits at the cost of poor farmers. If it is so, then there is no meaning of nutrient based subsidy."
    In the same note Jena suggested that fertiliser companies were pocketing roughly one-third of the total subsidy released for the farmers. He gave empirical evidence to support his claim:
    Exhibit 1
    In June 2012 fertiliser companies were selling one metric tonne of DAP fertiliser for R s. 25,000 in the market. Additionally, they were taking a subsidy of R s. 14,300 per metric tonne from the government. But in the same period the imported price of DAP was R s. 31,900. Jena stated that after factoring the port and distribution charges the companies were accruing around R s. 4,500 to R s. 5,000 per tonne.
    Exhibit 2
    In the case of MOP fertiliser, Jena suggested that companies were pocketing roughly R s. 5,500 of subsidy per tonne out of total R s. 16,054 of subsidy per metric tonne released by the government in 2011-2012.
    On August 3, 2012 Jena again wrote that "the companies were making very high profitsby selling the fertilisers at unreasonably high prices". He again emphasised that R s. 4,000 to R s. 5,000 of subsidyon per metric tonne of DAP and approximately R s. 6,000 subsidy per tonne of complex fertiliser was being siphoned off by private companies.
    Jena demanded to hold the companies accountable by carrying out an audit. "Since public money is involved in subsidy payment, the department must ask the companies to provide utilisation certificate of subsidy for the benefit of farmers with mandatory furnishing of complete costing of each fertiliser to the department," he wrote.
    The junior minister said that"it is imperative that department should take immediate corrective action". But dismayingly no steps weretaken by Alagiri.
    The question now arises whatwas stopping the DMK leader to put a stop to the plunderingof subsidies by fertiliser companies. Is it possible for the companies to go on making huge profits without the ministry's help?
    ~
     
    Raj30 and parijataka like this.
  4. sasi

    sasi Senior Member Senior Member

    Joined:
    Nov 18, 2012
    Messages:
    3,401
    Likes Received:
    1,679
    Location:
    India
    ~
    How fertiliser ministry cost exchequer R s. 1,000 crore
    Jena's series of notes to Alagiri began with a dramatic claim. However, despite his repeated reminders, Alagiri did not lift a finger to stop thishemorrhaging of the taxpayers' money.
    While the taxpayers' money could have been used to builda highway or a dam for farmers, many of them were driven to suicide due to the rising fertiliser prices.
    In early 2012 Jena alerted Alagiri to a specific order passed by his officials. It laid bare his ministry's collusion with private companies to get more subsidies than they were entitled to. He pointed out that in early 2012 the government was expected to reduce fertiliser subsidy in tune with the falling international prices.
    Many companies devised a plan to use this to their advantage. They sought the release of large amounts of fertiliser stocks in the market despite it being a lean farmingseason. Once the stocks weremoved, the companies would become entitled to the subsidyprevailing at the time.
    However, before they could do that, they needed an official go-ahead from Alagiri'sdepartment. Jena wrote to the department that the proposed movement was aimed to get fat subsidies and thus should not be allowed. But, to his shock, Jena found that the department had already issued the orders.
    Aghast at the blatant nexus between the ministry and private companies, Jena wroteon March 19: "The fertiliser industry has not been able to service the demand of subsidised fertilisers during peak requirement season leading to black marketing of fertilisers in the field…This has led to burden on farmers and consequently loss to government. Now in lean season, it seems that some parts of the industry are contracting P&K Fertilisers to take advantage of falling international prices and applicable higher subsidy till March 2012 to reap profits…The idea is to provide space to industry to recover its reasonable costs and not to try to profiteer by supplying fertilisers when not required and not supplying when required."
    Once again, Jena's pleas fell on deaf ears. Neither Alagiri nor the officials working underhim acknowledged or responded to his notes.
    On July 17 Jena wrote again:"A note regarding stock position of P&K Fertilisers at the retailer/dealer level in various states with requirement of clearing the existing stock first at prices of March 2012 and also to put a check on companies importing and marketing P&K at unduly high prices was senton 15th June 2012. It also cautioned the department against issuing of supply chain for P&K Fertilizers for the next two-three months. However, no response has been received from the department till date."
    Jena's notes go in vain
    The junior minister noted that"dispatching extremely high volume of fertilisers at a time when it was not required for consumption was done to claimhigher subsidy rates notified by the government for the year 2011-12 as compared to that for 2012-13".
    In the past the Opposition haslabelled Alagiri as a perpetually absentee minister.It has been alleged that he does not participate in Cabinetmeetings nor does he attend to important ministerial work.
    The Headlines Today investigation shows that Alagiri has been running his ministry like a private fiefdom.Even as farmers across the country have been reeling under the rising price of fertilisers, a nexus of privatecompanies and corrupt officials has been dictating government's fertiliser policy.
    /
     
  5. parijataka

    parijataka Senior Member Senior Member

    Joined:
    Oct 15, 2011
    Messages:
    4,893
    Likes Received:
    3,688
    Location:
    Bengaluru
    Hope TN voters continue to show their maturity by keeping this crooked mafia family out in 2014 also.
     
    Raj30 likes this.
  6. Vishwarupa

    Vishwarupa Senior Member Senior Member

    Joined:
    Sep 15, 2009
    Messages:
    2,030
    Likes Received:
    2,208
    I again request Mods to open a sticky thread on scams done by UPA by this we can collate all the scams in one place & discuss.

    number seems to be adding.
     
    jackprince, Raj30 and parijataka like this.
  7. sasi

    sasi Senior Member Senior Member

    Joined:
    Nov 18, 2012
    Messages:
    3,401
    Likes Received:
    1,679
    Location:
    India
    How abt separate section for UPA Scams!
     
  8. Vishwarupa

    Vishwarupa Senior Member Senior Member

    Joined:
    Sep 15, 2009
    Messages:
    2,030
    Likes Received:
    2,208
    Sir, this is my request. Sticky thread for UPA Scams
     
  9. Ray

    Ray The Chairman Defence Professionals Moderator

    Joined:
    Apr 17, 2009
    Messages:
    43,118
    Likes Received:
    23,543
    Location:
    Somewhere
    DMK takes the cake in the art of looting in a Gangnam style with guttural noise from Karunanidhi.

    And

    MMS takes the cake in inept leadership and maunbrat!


    Where is Sir Lancelot Rahul charging in in his shining armour on a pure white horse to save us from the 'poison' that is so rife that his Mother seems to be unable to counter?
     
    Last edited: Jan 22, 2013
    Raj30 likes this.
  10. Yusuf

    Yusuf GUARDIAN Administrator

    Joined:
    Mar 24, 2009
    Messages:
    24,273
    Likes Received:
    11,280
    Location:
    BANGalore
    Stickies don't seem to work except for defence threads. Every bit of political news becomes a thread. We can't keep merging and stuff all the time.
     
  11. KS

    KS Bye bye DFI Veteran Member

    Joined:
    Aug 3, 2010
    Messages:
    8,008
    Likes Received:
    5,718
    Location:
    irrelevant
    DMK is known for its intelligent corruption, leaving no traces behind....wonder what happened to their calibre ?,..:rolleyes:
     
    Raj30 and Mad Indian like this.
  12. sasi

    sasi Senior Member Senior Member

    Joined:
    Nov 18, 2012
    Messages:
    3,401
    Likes Received:
    1,679
    Location:
    India
    Hey don't blame them. They take only small %,rest with Congrass as donation. I think team up with congrass is bad idea. Congrass is not good at covering the loops, from the jeep scandal of 1948. Because of this dmk is in the hook.
     
    Tolaha likes this.
  13. Mad Indian

    Mad Indian Proud Bigot Veteran Member Senior Member

    Joined:
    Jan 27, 2012
    Messages:
    12,830
    Likes Received:
    7,522
    Location:
    Podigai Hills.
    Hey, it was DMK under bald mandayan MK who brought corruption first to TN .


    And what's worse, they have taught ADMK too on how to do technological corruption with no trace....
     
    sasi and Raj30 like this.
  14. sob

    sob Moderator Moderator

    Joined:
    May 4, 2009
    Messages:
    6,359
    Likes Received:
    3,661
    Location:
    New Delhi
    So another scam running into a few thousand crores. UPA is also responsible for setting a new benchmark for scams in this country. Poor Mr.Khurshid, he could only rustle up Rs. 77 Lakhs. What a shame for him.

    Coming to this case, this is a first time that the MOS has led a sustained campaign against his own minister.

    This shows the mindset of Minister Alagiri, despite all the file notations he continued to ignore the objections from his MOS. In this age of RTI, where even file notings are no longer sacrosanct, how did he believe that a series of letters could be swept under the carpet. Or was he banking on the tacit and overt support from the top echelons of the Congress Party, to rein in MOS Jena.
     
  15. sasi

    sasi Senior Member Senior Member

    Joined:
    Nov 18, 2012
    Messages:
    3,401
    Likes Received:
    1,679
    Location:
    India
    I think you not talking abt family business.
    So how many channels they run 28?:hehe:
     
  16. arunpat

    arunpat Regular Member

    Joined:
    May 4, 2011
    Messages:
    74
    Likes Received:
    100
    Round robin of accountability: I will not answer, go ask the PM, says Alagiri on fertiliser subsidy scam


    A day after Headlines Today exposed a suspected Rs.1,000 crore fertiliser subsidy scam allegedly leading to farmer's mass suicide in the country, Union Minister for Chemicals and Fertilisers M.K. Alagiri was on Tuesday summoned by his father and DMK chief M. Karunanidhi.

    It could not be ascertained what conversation took place between the two DMK leaders, as Alagiri refused to speak to Headlines Today after the meeting.

    Instead of defending himself or giving any explanation, a defiant Alagiri passed the buck onto Prime Minister Manmohan Singh.

    When Headlines Today asked Alagiri about the alleged fertiliser subsidy scam, the minister said, "I will not react. Go ask prime minister."

    When Alagiri was again probed about his junior minister Srikant Jena's repeated notes, he again said, "I cannot answer. Go ask prime minister."

    Headlines Today had on Monday reported how Alagiri ignored Jena's at least five internal notes, written between March and August 2012, leading to fertiliser companies making huge profits at the cost of taxpayers' money even as farmers had to pay high prices for subsidised fertilisers.

    Round robin of accountability: I will not answer, go ask the PM, says Alagiri on fertiliser subsidy scam : India, News - India Today
     
  17. sasi

    sasi Senior Member Senior Member

    Joined:
    Nov 18, 2012
    Messages:
    3,401
    Likes Received:
    1,679
    Location:
    India
    He said what he has say, refer my 1st post.
     
  18. Sam2012

    Sam2012 Tihar Jail Banned

    Joined:
    Dec 10, 2012
    Messages:
    743
    Likes Received:
    205
    Location:
    Bangalore
    This is not UPA-2 , It is SCAM UPA-2 , god bless India for UPA-3

    Sure India will become Somalia soon UPA-3 , UPA-4 +++++++++:wave:
     
  19. natarajan

    natarajan Senior Member Senior Member

    Joined:
    Jul 28, 2009
    Messages:
    2,592
    Likes Received:
    750
    sonia got another blackmail for mk,now he will fell to feet of sonia to save atleast alagiri whereas kani pappa was put in tihar for half an year.Whatever happens we want secular govenment in center(sickular people never change their mind)
     

Share This Page