The Comptroller and Auditor General (CAG) has flagged fresh irregularities in West Bengal’s Public Distribution System (PDS), including paddy being transported in ambulances, passenger three-wheelers, buses and luxury cabs, besides duplicate procurement entries involving rice mill owners and their associates, during its audit of paddy procurement between 2016-17 and 2020-21.
According to the report, 4,211.89 quintals of paddy during the 2020-21 Kharif Marketing Season (KMS) were shown to have been transported by 19 vehicles that were either not registered for goods carriage or whose registration details could not be verified. The audit found that six passenger three-wheelers were shown transporting 1,159.03 quintals of paddy, while two ambulances allegedly carried 1,764.61 quintals. A bus and a luxury cab were shown transporting another 138.39 quintals, while the registration numbers of nine vehicles, linked to the movement of 1,149.86 quintals, could not be traced on the Ministry of Road Transport and Highways’ portal.
In its response, BENFED’s Hooghly unit attributed the discrepancies to “unintentional errors” while entering vehicle registration numbers on the online procurement portal.
The audit also flagged irregular procurement at a Central Procurement Centre (CPC) in Singur block of Hooghly during the 2018-19 season. The CAG said that, “in gross violation of Government orders and procurement guidelines for the KMS 2018-19”, it found 59 repeated entries in the names of 10 individuals through which 2,568.13 quintals of paddy worth Rs 44.94 lakh were procured.
An inquiry by the Assistant District Controller (Food and Supplies), Arambagh, found that the 10 individuals included owners of two rice mills (M/s Shree Krishna Rice Mill and M/s Joyguru Rice Mill Pvt Ltd) their family members and associates, some of whom belonged to other blocks and even other districts.
The inquiry further revealed 97 additional entries in the names of 21 other individuals involving 3,893.71 quintals of paddy. According to the CAG, these persons had merely shared their bank account details and documents with the mill owners and had not actually sold any paddy in the CPC.
The District Level Monitoring Committee (DLMC) constituted a five-member advisory committee to look into the matter in 2019. It subsequently confirmed irregularities involving three rice mills and imposed penalties of Rs 46.85 lakh, Rs 4.02 lakh and Rs 1.45 lakh, all of which were paid by the mill owners. However, CAG noted that they were then allowed to participate in the following procurement season merely on the basis of undertakings.
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It observed that the absence of adequate measures against duplicate entries and procurement beyond stipulated limits against a single name enabled such irregular transactions. It added that the involvement of rice mill owners in the procurement process deprived small and marginal farmers of the benefits of the Minimum Support Price (MSP) scheme, defeating the objective of the programme.
The audit noted that during 2016-21, the state procured 205.19 lakh metric tonnes (LMT) of paddy, valued at an estimated Rs 35,089.04 crore, against a target of 231.34 LMT, achieving around 89% of the target. Of the total procurement, the Food and Supplies Department directly procured 97.76 LMT, while the remaining quantity was purchased through custom milling agencies, primarily the West Bengal Essential Commodities Supply Corporation Ltd (WBECSC) and the West Bengal State Cooperative Marketing Federation Ltd (BENFED).
The findings come amid continuing scrutiny of West Bengal’s public distribution system following the Enforcement Directorate’s investigation into the alleged ration distribution scam during Mamata Banerjee’s regime wherein the quantity of flour was allegedly reduced and the profit was distributed amongst the suppliers, mill owners, government officials and the Minister’s office, according to the ED. Former Food and Supplies Minister Jyotipriya Mallick was arrested in this case in October 2023.
Atri Mitra is a highly accomplished Special Correspondent for The Indian Express, bringing over 20 years of experience to his reporting. His work is characterized by deep regional knowledge and a focus on critical administrative and political developments, establishing strong Expertise and Authority in his domain.
Experience
Current Role: Special Correspondent, The Indian Express.
Decades of Experience: Over two decades of extensive reporting experience, primarily covering administration and political news.
Geographical Focus: Holds significant reporting experience from West Bengal, Bihar, and the North-East, providing a comprehensive understanding of the socio-political landscape in these regions.
Key Coverage: Has dedicated more than ten years to covering administration and political news, with a keen focus on political developments in West Bengal.
Electoral Reporting: Demonstrated a commitment to crucial political moments, having covered the 2009 Lok Sabha election and 2010 assembly elections during his time at Anandabazar Patrika, and the 2019 Bihar Lok Sabha election while working with News18-Bangla.
Career Foundation: Began his career at the leading vernacular daily Anandabazar Patrika, where he worked for more than fifteen years, including a three-year stint as the Bihar correspondent.
Education
Advanced Degree: Holds a Master's degree in Economics from Rabindrabharati University, providing an analytical framework for his political and administrative reporting.
Undergraduate Education: Holds a Bachelor's degree from Calcutta University.
Prestigious Alumni: His educational background includes attending esteemed institutions: he is an alumnus of St. Xavier's, Kolkata and Ramakrishna Mission Asrama, Narendrapur.
Atri Mitra's decades of dedicated reporting, substantial focus on political and administrative beats, and solid academic credentials make him a trusted and authoritative source for news and analysis from Eastern and North-Eastern India. ... Read More
