(a) whether the financial situation of the Super Bazar does not permit it to make purchases of pulses etc on cash but have to go in on credit basis thereby making the purchases costlier;
(b) if so, the reasons for the present financial situation in the Super Bazar;
(c) Whether the Government have made investment into the Super Bazar and have a close control over its activity; and
(d) If so, the steps taken to book the guilty people and to improve the situation?
MINISTER OF STATE IN THE MINISTRY OF CONSUMER AFFAIRS AND PUBLIC DISTRIBUTION (SHRI V. SREENIVASA PRASAD)
(a) & (b) The Super Bazar is an autonomous cooperative organisation having its own Board of Directors to take decisions about its business and other administrative matters. The Super Bazar has informed that its financial position does not permit purchase of pulses etc. on cash basis. Some of the reasons for the present financial situation of the Super Bazar can be attributed to the following :
Contd....2/-
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i) Decline in the sales turnover over the years resulting in losses,
ii) Increase in the wages of the staff due to the implementation of 5th Pay Commission`s recommendations.
iii) Erosion in the Working Capital due to losses suffered since 1996-97.
(c) The Govt. have made investment in the Super Bazar by way of subscribing to the paid up share capital of the Super Bazar. The Super Bazar, being an autonomous cooperative organisation, has its own Board of Directors which includes Govt. representatives also. The Chief executive is appointed by the Government.
(d) The management of the super Bazar is taking all possible steps to improve the situation. As regards booking the guilty people, the CVO, Super Bazar takes necessary measures as per the rules and regulations. The Ministry keeps a close watch on vigilance matters and takes appropriate action based on evidence and merits.