State bars competitive bids for PSU term depositshttps://indianexpress.com/article/cities/kolkata/state-bars-competitive-bids-for-psu-term-deposits/

State bars competitive bids for PSU term deposits

Following an alleged Rs 120-crore fraud in fixed deposits lodged by West Bengal Industrial Development Finance Corporation,the state government today issued an order asking all state PSUs and other government corporations to refrain from competitive bids for term deposits.

Following an alleged Rs 120-crore fraud in fixed deposits lodged by West Bengal Industrial Development Finance Corporation,the state government today issued an order asking all state PSUs and other government corporations to refrain from competitive bids for term deposits.

According to an FIR filed by WBIDFC chairman Abhirup Sarkar,Rs 120 crore of the state PSU that was supposed to be deposited in a branch of UCO Bank,the PSU’s bank,had been siphoned off.

According to preliminary reports,the money was sent to some other bank by some officials for better rate of interest,but it was never deposited there. The CBI is investigating the case.

In its order issued on March 15 and circulated today,the government has asked all departments to discontinue the practice of competitive bids. “It has been brought to our notice that the practice of inviting term fixed deposits with banks is prevalent in many PSUs,directorates… This leads to frequent transfer of term-fixed deposit account of the government office from one bank to another,engaging their attention more in the rate of interest than in fund management and its security. Now the government forthwith discontinue the practice of inviting competitive bids for term fixed deposits and place the deposits with the banks with whom they have regular course of business,’’ the order said.

Road record: 5 km in 21 months

The state government has been able to build only 5 km of road since the Trinamool Congress came to power in May 20,2011,the Assembly was told on Monday. The revelation came from PWD Minister Sudarshan Ghosh Dastidar during his reply to a question on roads in the Assembly. The question was raised by Congress member Asit Mal. The 5 km stretch was built in Barasat of North 24 Parganas district. “We had a target of constructing 20 km of road in the last two years and out of that we could finish only 5 km.”said the minister in his reply. He added that the government had undertaken repair of several roads that were in bad shape.

Reply to SEC likely by Thursday

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The state government is yet to reply to the State Election Commission regarding its final stand over the number of phases of the panchayat election. Sources in the panchayat department confirmed that the state government is likely to issue the notification for the poll on Thursday as the Chief Minister,who will authorise it,will be in Junglemahal on Tuesday and Wednesday.