THE MINISTER OF CHEMICALS & FERTILIZERS (SHRI SUKHDEV SINGH DHINDSA)
(a) to (g) : A statement is laid on the table of the House.
Statement referred to in reply to parts (a) to (g) of Lok Sabha Starred
Question No. 133 to be answered on 29.07.2003
(a) to (c): Certain instances have been brought to the notice of the Government
regarding fraudulent claims by fertilizer companies in the matter of drawal of
concession under the Concession Scheme for decontrolled fertilizers pertaining to
sales particularly in the States of Uttar Pradesh and Bihar and Gujarat.
As per the instructions issued by the State Government of Bihar, Director of
Agriculture was required to obtain verification reports from District Agriculture
Officers for issuing sale certificates under the Concession Scheme for decontrolled
fertilizers. However, Director of Agriculture issued sale certificates during the
period 1994-95 to 1997-98 by violating these instructions regarding certification
of quality and quantity of fertilizers sold. The Comptroller & Auditor General (CAG)
in its Report (Civil) 2000 apprehended that because of sales certificates so issued
by Director of Agriculture, which amount to about Rs.162 crore, the possibility of
certifying doubtful claims of the concession of the 22 suppliers was not ruled out.
While referring the matter to Bihar Government in February 2000, the GOI also
decided to withhold balance payment against sales certification by State
Government till the matter is settled. The State Government of Bihar has in
February, 2002 referred the matter for investigation by CBI.
In the case of alleged fraudulent claims and other malpractices by the SSP
units located in the State of U.P., the GOI had in March 2000 requested State
Government to conduct an inquiry and also decided in February, 2000 to stop
further payment of concession to all the 29 units. After receipt of the inquiry
report from the Government of U.P., conducted in respect of manufacture and
sales for the period 1998-99 and 99-2000, the GOI in consultation with State
Government decided to continue stoppage of payment of concession in respect of
19 units. An amount of approximately Rs. 80 lakh has already been recovered on
sales of 9522 MTs of SSP to the extent as alleged in the preliminary inquiry report
during the period of inquiry from 8 SSP units. The Government of U.P. has
initiated criminal proceedings against ten units.
In another case of U.P., the State Government is examining
possibility of M/s. Oswal Fertilizers & Chemicals Limited (OCFL) having claimed
on-account concession on DAP sales not in conformity of the guidelines of the
Government. The company has, prima facie, reported higher sales of DAP in the
State of Uttar Pradesh during last three months of 2001-02. The verification of
sales of DAP for the period 2001-02 by U.P. Govt. is still pending. As regards any
excess sale, adjustment/recovery of the disputed sales is subject to confirmation
by the State Government on the actual quantity sold. In view of this DOF has
suspended future payment of concession to the company.
In August 2001, the State Government of Gujarat reported that a quantity
of 4359 MT of MOP sold in Gujarat by M/s Indian Potash Limited (IPL) during
June-September 2000 was not sold for agricultural purposes on which concession
had been wrongly claimed by the company. The concession amount equivalent to
that paid/payable on the impugned quantity has since been withheld by the
Government. IPL, which was asked to inquire into the matter and explain the
wrongful claim, has informed that in the inquiry instituted by the State against the
six distributors of IPL, complaint against five could not be substantiated and
against the sixth, inquiry could not be finalized as the distributor had since
migrated out of the country. The confirmation of the above facts is yet to be
received from Govt. of Gujarat.
As regards the amount involved in above alleged wrongful claims of
concession, assessment of the same would be possible only after completion of
proceedings initiated by the State authorities/CBI investigation and the extent of
sales certification.
(d) to (e) : The Technical Audit and Inspection Cell (TAC) constituted by
Department of Fertilizers especially for SSP units has resulted in stemming the
possibility of fraudulent claims of concession by SSP industry. In addition TAC has
also been entrusted techno-commercial audit of DAP & NPK plants. In the reports
submitted by TAC so far on the audit of SSP and DAP/NPK plants, no major
fraudulent claims have been detected.
(f) and (g) : No, Sir. In the light of the results achieved through constitution of
TAC for technical and commercial audit/inspections of SSP units as also DAP/NPK
plants, the Government do not feel the necessity at this stage for an independent
machinery for this purpose.
