Scam in grains for poor may eclipse all others

If the country has not had enough of big money scams this year, there is another one brewing – and this may be the mother of them all. According to some reports, the scam may have caused the exchequer a loss of up to Rs2 lakh crore – almost as much as the furore-causing 2G spectrum, Commonwealth Games, and Mumbai's Adarsh housing scams combined.

A huge stock of foodgrains produced in Uttar Pradesh and meant for the poor has apparently been gobbled up by wheeler-dealers and diverted to the open market – even exported to neighbouring countries like Bangladesh and Nepal.

The grain, meant for distribution under the Antyodaya, Annapurna and Mid-Day Meal schemes of the state and union governments, was smuggled outside the state and even the country with the collusion of top officials of the state as well as the central government between 2001 and 2007. The Central Bureau of Investigation is investigating the fraud, which according to sources in the agency involves over 200 state and central government officials.

The size of the scam came to light last Friday, when the Lucknow bench of the Allahabad high court directed state agencies to refer to the CBI and conclude the investigation within six months. The order was passed by a division bench comprising Justices Devi Prasad Singh and S C Chaurasia while allowing a public interest litigation filed by one Vishwanath Chaturvedi, seeking direction for a CBI probe into the scam.

The petitioner drew the attention of the court to the high degree of corruption prevailing in the state, whereby grains meant for below poverty line (BPL) card-holders covered under these schemes was smuggled not only outside the state but outside the country.

The court, in its order, issued eight directions in this matter. "The CBI shall proceed with further inquiry not only with regard to Ballia, Lakhimpur and Sitapur districts but also with regard to Varanasi, Gonda and Lucknow districts," the court directed. It further said the state agencies shall immediately refer to the CBI for further investigation all cases where it is found that the grains were smuggled to other parts of the country or outside the country.