Admitting irregularities in non-basmati rice exports to some African countries during UPA-I tenure, the government today said it has referred the matter to the CVC after slapping show cause notices on officials of PSUs involved in the transactions.
Admitting irregularities in non-basmati rice exports to some African countries during UPA-I tenure, the government today said it has referred the matter to the CVC after slapping show cause notices on officials of PSUs, involved in the transactions.
The action follows an internal enquiry by department of commerce which found that "the exporting PSUs did not follow the transparent procedure for selection of domestic associates or determination of the price at which the rice was exported," commerce minister Anand Sharma said in the Lok Sabha.
Significantly, these transactions were completed during December 2007-March 2009, when the commerce ministry was headed by the incumbent road transport and highways minister Kamal Nath.
The government had banned the export of non-basmati rice in the wake of escalating prices in the domestic market. However, on diplomatic ground, it allowed export of limited quantity to some African and the least developed countries.
But the predetermined terms of contracts between foreign buyers and domestic suppliers (with small margins for the PSUs) led to "hugely disproportionate profits accruing to private parties, namely the foreign government nominated domestic suppliers in India," Sharma said.
The lack of due diligence on the part of officials resulted in a "denial of the legitimate profits of the PSUs," he said adding, all records have been forwarded to the Central Vigilance Commission.
The enquiry was ordered following questions on the integrity of the process of relaxation of export ban on diplomatic ground, he said in a statement amidst din.
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