An internal inquiry by the rural development ministry has revealed “fraudulent” purchases of over `8 crores under the National Rural Employment Guarantee Act in just one district of Uttar Pradesh — Barabanki, which require a detailed examination from the angle of criminal conspiracy.
Armed with the findings of its three-member inquiry panel, the ministry is likely to confront the Mayawati-led UP government and seek a CBI probe into the matter.
The report, a copy of which is with this newspaper, has shown blatant violations of norms, which is being seen as just the tip of an iceberg. The report points to curious cases of multiple payments being made from a single cheque — for example, on March 28, 2010, M/s Manohar Brick Field Barabanki was made separate payments of `5,85,000 and `3,90,000 by cheque number 805141. The same firm has again been made two further payments on March 31, 2010 — of `3,90,000 and `19,50,000, with cheque number 805171.
The panel has noted that the order for five lakh bricks to M/s Manohar Brick Field Barabanki “appears to be a case of bogus payment, which is not backed by any voucher”, and indicts local administration by saying “... circumvention of rules hints towards a situation where actual purchase as shown in documents may be artificial”.
The report reveals another case where M/s Dinesh Chandra Free Sale Cement, Barabanki, was given a payment of `3,95,250 six months before (May 31, 2010) the work order was placed on December 1, 2010.
The report lists several instances where the administration, in a bid to avoid going in for an open tender as per the rules, issued multiple procurement orders on the same day for amounts just under `1 lakh each. Listing such instances, the report says “it is only indicative and involves amounts in multiple of crores of rupees, with cases of two orders placed on the same day with a single firm”.
The report warns that “legally, manipulation of official records is a criminal offence, and may be questioned by the Comptroller and Auditor-General as systematic and wholescale fraud”.
The panel, which comprised B.C. Bahera, P. Manoj Kumar and D.K. Singh, has also highlighted “massive purchase of bamboo” under the flagship scheme, while also revealing cement purchases upto `22.40 lakhs on one occasion and `12.70 lakh on two other occasions having been made from the open market without going in for an open tender.