CBI to probe Arunachal-FCI scam: Centre

As per rules framed in 1995, under the Hill Transport Subsidy (HTS) scheme, the FCI reimburses transport costs to Arunachal Pradesh for taking foodgrains from the FCI’s depots to 13 designated distribution centres. The Express had revealed how the FCI was paying huge amounts of money to contractors under the Hill Transport Subsidy for the supposed transportation of foodgrains by truck to areas which had no road links, and where porters were used instead. While the Express investigation had worked out the sum involved to be Rs 170 crore, a special audit conducted by the government put it at Rs 193.63 crore between 2002 and 2004.

Payments under the HTS scheme were suspended in April 2004, but not a single person was booked. The then zonal manager of the FCI, an IAS officer of the Assam-Meghalaya cadre, has returned to his parent state. N. N. Osik, the then director of civil supplies—whose bank balance showed an increase of Rs 2.85 crore between October 4, 2002 and July 16, 2003—was shifted to another department.

Days after the story broke in May last year, the government referred the matter to the Central Vigilance Commission. ‘‘The Central Vigilance Commissioner has now referred the case to the CBI for a detailed investigation,’’ Pawar has informed Gao, adding that reimbursements of claims under the HTS scheme would be resumed only after ‘‘proper safeguards’’ were in place to ensure that such malpractices did not occur in future.