Uproar in LS over CAG report on farm loan waiver scheme
Posted on: 11:40 AM IST Mar 06, 2013
New Delhi: The Lok Sabha was adjourned on Wednesday after uproar over alleged scam in farm loan waiver scheme. The CAG report which was tabled in Parliament on Tuesday had criticised the scheme's implementation, citing lapses in 22 per cent of the cases.
The loan waiver scheme was brought by the UPA government in its first term (2004-09). The Comptroller and Auditor General has said there were serious lapses and malpractices in implementing the government's Rs 52,000 crore ($9.5 billion) farm loan waiver scheme in 2008.
In a report tabled in parliament on Tuesday on "Implementation of Agricultural Debt Waiver and Debt Relief Scheme, 2008", the CAG said there were irregularities in at least one in five cases.
The CAG report said over Rs 20 crore were doled to ineligible farmers or for purposes other than agriculture. The scheme was announced by the UPA government in 2008 and it had written off debt of more than 3.7 crore farmers.
There are lapses in over 22 per cent of the cases and over 13 per cent of the beneficiaries were eligible under the scheme but were not considered, according to the CAG report said. There were also no acknowledgement taken from over 34 per cent or a third of the farmers.
This acknowledgement is necessary so that farmers don't take fresh loan. In over 4800 cases, incorrect benefits were given to the farmers, the CAG report further revealed. Further, loans of over Rs 164 crore were waived off in violation of the guidelines, the report said.