Uttar Pradesh Lokayukta NK Mehrotra,who is probing alleged irregularities in the sale of sugar mills during the previous BSP government,has issued notice to BSP general secretary Naseemuddin Siddiqui,who was minister of sugar industry and cane development at the time of sale,seeking his response to the objections raised by the Comptroller and Auditor General (CAG) in an audit report.
Mehrotra said as Siddiqui carried the matter related to the sale of sugar mills for Cabinet approval,he has been asked to reply to the objections. The sale of sugarmills had allegedly caused a loss of more than Rs 1,179 crore to the state exchequer.
Mehrotra said he has asked Siddiqui to reply by March 22. The government had given the inquiry of sugar mills sale to Lokayukta in November last year. The CAG report alleged that the loss was caused by the reduction in stamp duty,and lack of competition in the bidding because several companies linked to each other participated in the process.
The Lokayukta has already issued notices to IAS officers who were part of the consultative evaluation committee (CEC) and Core Group of secretaries on Disinvestment (CGD) on the sale of 21 state-owned sugar mills,and Provincial Civil Services(PCS) officers who,as additional district magistrates of 14 districts,allegedly reduced the stamp duty in violation of the rules.