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This is an archive article published on February 8, 2012

Lokayukta sends notice to Siddiqui

Lokayukta N K Mehrotra on Tuesday issued a notice to PWD,Excise,Sugar Industry Minister Naseemuddin Siddiqui,asking him to reply why a private company was allowed by the Sugar Industry department to function in a joint venture with the UP Co-operative Sugar Factories Federation for distribution of liquor in the state,in violation of the excise policy.

Lokayukta N K Mehrotra on Tuesday issued a notice to PWD,Excise,Sugar Industry Minister Naseemuddin Siddiqui,asking him to reply why a private company was allowed by the Sugar Industry department to function in a joint venture with the UP Co-operative Sugar Factories Federation for distribution of liquor in the state,in violation of the excise policy.

Siddiqui has been asked to reply within 10 days.

The complaint has been filed by Vinay Mishra from Allahabad. Mishra has accused Siddiqui of neglecting rules to favour liquor baron Ponty Chadha’s company. According to Mishra’s complaint,Blue Water Limited was given the work of liquor distribution by the Sugar Industry department in a joint venture with UP Co-operative Sugar Factories Federation in 2007,in violation of the excise policy. He has alleged that the state exchequer suffered loss of crores of rupees as the distribution of liquor remained with only companies run by Chadha during the last four years.

However,the Lokayukta is only probing into the violation of excise policy in 2007. He said that policy decisions taken after 2007-08 have been challenged in the Allahabad High Court and have been also upheld by the court.

The Lokayukta is investigating two more complaints against Siddiqui pertaining to disproportionate assets,and influencing the distribution of Centre’s Bundelkhand package and mining contracts in Banda and Mahoba districts.

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