₹104 crore were disbursed to three companies owned by the chairman and his brother instead of individual Dalit beneficiaries, ₹55 crore illegally withdrawn and embezzled by district officials, ₹10 crore to 'poor' for purchase of Audi and Mercedes Benz and ₹30 lakhs from women beneficiary scheme given to men. These are some of the large scale irregularities reported by the comptroller and auditor general (CAG) in its latest report about Maharashtra government's social sector company - Sahitya Ratna Annabhau Sathe Development Corporation Limited (SRLABSDC).
The corporation, meant for the upliftment of Matang and other Dalit communities (under social justice and special assistance department), is also suspected to have disbursed funds to its own officials, bogus people and companies violating all rules and misusing public money.
These findings are part of the auditor's report on public sector undertaking of Maharashtra government which was tabled in the Maharashtra legislator Friday. "The corporation was not in possession of records pertaining to 11,128 people out of 15,269 beneficiaries to whom financial assistance of ₹41.89 crore was stated to have been disbursed during 2014-15. The genuineness of assistance therefore couldn't be verified in the audit," stated the CAG report.
The CAG has come down heavily on the corporation for disbursing ₹104 crore to three organisations instead of individual beneficiaries, a gross violation of rule.
Interestingly, two of the three companies are owned by the corporation's then chairman (Ramesh Kadam) and the third one belongs to his brother, reveals the report. Kadam, a sitting NCP MLA was the chairman of the corporation between August, 2012 and December, 2014, during which, he along with other officials of the corporation allegedly misappropriated over 200 crores.
ED has attached Kadam's assets worth ₹120 crore last year. Ramesh Kadam was arrested last year and is in jail pending trial.
The Kadam's companies benefited during his tenure are Lokshahir Anna Bhau Sathe Magagsvargiya Sahakari Soot Girni (Paithan, ₹61 crore for cotton gunning mill), Joshba coop consumer society (Mumbai, ₹ 41 crore for purchase of vehicles for vegetable supply) and Prathmesh sansthan (Mumbai, ₹1.3 crore for transport business.
While loans to Girni and Prathmesh sansthan were given even before they registered themselves as entity, loan to Joshba was sanctioned under 'national horticulture mission' which is not even under the purview of the Corporation.
It would be difficult for the corporation to recover the loan or take legal action against these firms due to lack of proper loan agreements and guarantors. No recovery has been made till November 2016 even as loans were given in 2013-14, states the audit report.
Moreover, loans of around ₹35 crore were disbursed to two firms in 2014 outside the targeted community-maitari sugar and trading (₹30 crore) and Mahalaxmi dairy (₹5.34 crore).
While CAG didn't found loan agreements and security for the twin loans, it found documents showing that one company Maitari Sugar trading company transfered ₹25 crore to hubtown - real estate company within months.
The most interesting finding of CAG report is that the corporation disbursed ₹10 crore for purchase of vehicles including the high end cars Mercedes Benz and Audi whose cost is many fold compared to the ceiling of ₹7 lakh under the scheme which is meant to help poor Dalits to purchase tourist vehicle for employment purpose.
CAG found mismatch in the names of registered owners of vehicles and the beneficiaries' documents shown by the corporation.
The company is also accused of purchasing 500 commercial vehicles without identifying beneficiaries which are lying idle for three years.It released 11 crore advance to a contractor for construction of a training centre in Aurangabad in 2013 while work didn't commence at the time of audit in October 2016.
Corporation also failed to provide caste and income certificates and residential and age proofs of several other beneficiaries during the audit. Shockingly, ₹39 lakh from Mahila Samrudhi scheme were given to 61 men violating all rules.
"Loans disbursed to 30 people in the basis of old income certificates and even to those with higher annual income," noted the report highlighting the gross mismanagement in the company leading to huge loss to public exchequer.
CAG exposed several other malpractices in the report including mere 9.7% recovery of loans, illegal appointments and lack of assessment of welfare schemes.
The corporation was constituted in 1985 and provides loans, capital and trading to Dalits for various employment activities.
Report also exposed poor functioning and malpractices of two other social corporations of the Maharashtra government-Mahatma Phule OBC development corporation and Vasantrao Naik Vimukti Jati & Nomadic Tribes development corporation.
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