Loan waiver extended twice to SC beneficiaries in Punjab, excess claims of Rs 16.15 lakh made: CAG report

“As per the loan waiver scheme, benefit of waiving off the loan amount of maximum Rs 50,000 was to be given to each loanee. Audit observed that loanees were included more than once in the list of this scheme. The names of 61 loanees were repeated in the list which resulted in excess claim of ₹16.15 lakh from the state government,” the CAG report has said.

It further stated that in February 2022, the management of the corporation accepted and stated that inadvertently a second account was created and the amount was claimed from the government but the loanees were not given the benefit twice.

The Punjab Scheduled Castes Land Development and Finance Corporation was set up in January 1971 for the economic upliftment of the SC community and specially-abled people in the state. The state government and the Government of India (GoI) hold equity in the corporation in a 51:49 ratio.

The corporation advances loans to the members of the SC community and specially-abled people in the state under various schemes, either directly through direct lending schemes or in collaboration with National Scheduled Castes Finance and Development Corporation (NSFDC), National Safai Karamcharis Finance and Development Corporation (NSKFDC) and National Handicapped Finance and Development Corporation (NHFDC) by acting as the state channelising agency to implement their welfare schemes. The corporation also extends subsidies to below poverty line SC families under the Centre’s Special Central Assistance (SCA) scheme through its bank tie-up scheme.

The corporation, being the state channelising agency for NSKFDC, has also been nominated as the nodal agency for the rehabilitation of manual scavengers in the state. It provides loans for self-employment creation under small businesses, small-scale industries and agriculture and allied activities sectors, besides education loans.

The CAG audit observed that the corporation did not conduct any survey or maintain any reliable database. Instead, it was advertising in newspapers for the identification of beneficiaries, which was not serving the purpose.

The corporation’s management stated that in February 2022 camps were organised by its district managers to create awareness among Scheduled Castes and specially-abled people about the benefits of various welfare schemes implemented by the corporation. However, record notes substantiating the outcomes and effectiveness of such camps were not shown to audit. In absence of the records, the CAG report says, the audit cannot comment upon the participation levels and effectiveness of the awareness camps reportedly organised by the corporation.