Come up with ways to cut FCI loss: SC to govt

A bench led by Chief Justice T S Thakur said the Centre will be held accountable, especially when a loss of nearly Rs 18,000 crore is being incurred annually over holding foodgrain stocks. It was also critical of the fact that while the government has not agreed to distribute foodgrains to poor for free, although it lacks adequate storage, nothing is being done for this monumental loss.

The bench, also comprising Justices A K Sikri and R Banumathi, has given the government 10 days to respond on how this can be stopped. The court further sought to know its decision on FCI’s request to allow it to engage contractual labour and tackle “labour gangs.”

Solicitor General Ranjit Kumar was directed to seek instructions about the Centre’s keenness to implement recommendations made by a high-level committee headed by Shanta Kumar, former Himachal Pradesh CM and former Union Food Minister.

“The report shows that in August 2014, 370 labourers received more than Rs 4 lakh in salary. Around 400 others got between Rs 2 lakh and 2.5 lakh in the same month. Can a labourer earn Rs 4.5 lakh? How is that possible? This is resulting into a loss of Rs 18,000 crore to the public exchequer,” said the bench.

It added: “This is completely unacceptable…there is something seriously wrong. Offices of FCI are being murdered. We would like to know what the government is doing about it.”

The Solicitor General was waiting for another matter when the bench asked him to assist. “Your high-level committee has now given a report. It has said the system is wrong. The (Bombay) High Court gave you a month on November 20 to decide on FCI’s request. Tell us what you are doing. If you don’t listen to your own committee, we will appoint a very high-level committee and issue directions,” it told Kumar.

“FCI is often accused of not having proper storage for food grains, which are out in open, getting wasted. We once said you should give it to poor and needy for free but you are not willing. Look at what you are allowing in this case. We are not going to countenance this,” said the bench, asking Kumar to come back with instructions on January 18.
The matter came up before the court after the FCI labour union challenged the Bombay HC order, which sought to end this practice and directed the Centre to decide FCI’s representation on contractual labour within a month.