Date post: | 03-Apr-2018 |
Category: |
Documents |
Upload: | abhishek-kadyan |
View: | 217 times |
Download: | 0 times |
of 126
7/28/2019 Report on the State of Haryana - Central Vigilance Committee
1/126
CENTRAL VIGILANCE COMMITTEE
ON
PUBLIC DISTRIBUTION SYSTEM
REPORT
ON
THE STATE OF HARYANA
7/28/2019 Report on the State of Haryana - Central Vigilance Committee
2/126
7/28/2019 Report on the State of Haryana - Central Vigilance Committee
3/126
1. In Writ Petition(C) No.196/2001 Peoples Union for Civil Liberties
V/S Union of India and Ors., Honble Supreme Court of India by Order
dated the12.7.2006 constituted a Committee to be headed by me to lookinto maladies affecting the proper functioning of the Public Distribution
System (PDS) and to suggest remedial measures. The operative portion
of the order reads as under:
After having heard learned counsel for the parties, we find
that there is practically no monitoring over the sums allotted
for the Public Distribution System (in short PDS) by the
Central Government, and its utilization. The amount involved
we are told is in the neighborhood of Rupees Thirty
Thousand Crores annually. Certain suggestions have been
given by Mr. Colin Gonsalves, learned senior counsel as to
the modalities to be adopted in such cases. At the present
stage we feel it would be necessary to constitute a Central
Vigilance Committee headed by a retired Judge of the Court
to be assisted by Dr. N.C. Saxena, the Commissioner earlier
appointed by this Court. We requested Mr. Justice D.P.
Wadhwa to head the Committee.
The Committee shall look into the maladies which are
affecting the proper functioning of the system and also
suggest remedial measures. For this purpose the
Committee shall amongst other things, focus on:-
a) The mode of appointment of the dealers,
b) The ideal commission or the rates payable to the
dealers, and
c) Modalities as to how the Committees already in place,
can function better,
7/28/2019 Report on the State of Haryana - Central Vigilance Committee
4/126
d) Modes as to how there can be transparency in
allotment of the food stocks to be sold at the shops.
While dealing with the question of the mode of appointment,
the Committee shall also suggest as to a transparent mode
in the selection of the dealers. The Committee shall also
indicate as to how more effective action can be taken on the
report of the Vigilance Committee already appointed. It
goes without saying that the same shall be in addition to the
legal remedies available to any citizen in setting law into
motion. We request the Committee to give its report within
period of four months so that further instructions/directions
can be given.
The Committee would invite suggestions from general
public, organizations and would consider the suggestions, if
any received in the proper perspective.
2. Honble Courts direction was initially given for the Government of Delhi to
be followed on an all India basis.
3. Committee submitted report on Delhi on 21.8.2007.
4. By order dated 10.01.2008, Honble Court, while accepting the report,
directed the Committee to undertake a similar exercise in terms of earlier
order for the entire country.
5. Scope of the task assigned to the Committee thus having been enlarged,
the Committee projected to the Department of Food & Public Distribution,
additional requirements of staff, space and delegation of financial powers
for its smooth functioning. The Department dilly dallied and did not meet
7/28/2019 Report on the State of Haryana - Central Vigilance Committee
5/126
the requirements. The Committee had to approach the Honble Court again
and again. It was only after a peremptory Order dated 25.8.2008 was
passed by the Honble Court that the Department started taking steps forcreating necessary infrastructure. It was only thereafter that the
Committee could start functioning in right earnest. The Honble Court
extended the time for submitting the report till April 2009.
6. The Committee submitted its report for the States of Uttarakhand, Jharkhand,
Orissa and Karnataka. Thereafter, the Honble Court has been pleased to
extend the time further till December 2009. The Committee has since
submitted the report on the State of Andhra Pradesh, Bihar, Gujarat and
Rajasthan. The Honble Court has further extended the tenure of the
Committee till 30.6.2010The Committee is presently submitting its report
on the State of Haryana.
7. The Committee has already submitted a separate comprehensive report on
Computerization of PDS. Some States have shown interest towards
computerization of PDS. It is the mandate of the Public Distribution
System (Control) Order 2001 that State Governments shall ensure
monitoring of the functioning of the Public Distribution System at the fair
price shop level through the computer network of the NIC installed in the
District NIC Centres. For this purpose computerized codes shall be
issued to each FPS in the district. Nothing appears to have been done
towards this.
8. PDS is undoubtedly the largest food distribution network of the kind in the
world. While procurement, storage in FCI godowns and allocation of food
grain to the states is in the hands of the Central Government, distribution
is done through the Fair Price Shops licensed by the State after identifying
7/28/2019 Report on the State of Haryana - Central Vigilance Committee
6/126
7/28/2019 Report on the State of Haryana - Central Vigilance Committee
7/126
transparency and remove corruption from the much maligned PDS. It is
stated that in Haryana about 53 lakh people will be issued the smart card.
Central Government have recently constituted a Unique IdentificationAuthority of India (UIDAI). The mandate of UIDAI is to issue unique ID
number to every resident of the country. It is stated that if PDS
authorities, in their domain make UID number of the ration card holders
and their family members as mandatory, they can clear up their data base
of bogus ration cards. UIDAI would re commend that all State
Governments should start working and actively participate with the UIDAI
so as to clean up their data bases and improve their delivery system.
12. In answer to a question that about 1.5. crores bogus ration card holders
were milking the PDS and could UID help such situations, Mr. Nandan
Nilekani, Chairman, UIDAI, replied UID by itself will not solve the issue.
The application of UID in a given context will solve it. If a state decides to
have UID in all its ration cards, then somebody who has a ration card with
the UID cannot come again on another ration card with another UID. So
UID will ensure there are no duplicates. We are providing a capability to
agencies to re-engineer their public service deliveries but the decision to
re-engineer has to be theirs.
13. There is a complete mess in the state in the functioning of PDS and the
whole system is mired with corruption. After the Release Order is issued
by District Supply Officer to CONFED to lift food grain from FCI or other
agencies, there is no system of checking if the food grain reaches the FPS
and it is allotted to the beneficiaries in right quality, quantity and in time.
There is no check if the FPS has issued all the PDS food grain allocated
to it and without their being any check Release Order for the next month
is issued as a matter of course.
14. CONFED is misfit for handling distribution of PDS food grain. It has no
trucks of its own. Tender process for appointing transporters is faulty.
Even the tenderers have no trucks of their own and they have to hire
7/28/2019 Report on the State of Haryana - Central Vigilance Committee
8/126
7/28/2019 Report on the State of Haryana - Central Vigilance Committee
9/126
7/28/2019 Report on the State of Haryana - Central Vigilance Committee
10/126
Kurukshetra Mr. Narinder Singh, Addl. Deputy Commissioner; Mr, A.R.
Godara, ADFS; Mr. Ashok Bansal, SDM Thanesar; Ms. ManjulaDahiya,DFSC; Mr. Dhan Singh, D.M.,CONFED; Mr. B. Devanand, D.M.,
FCI; Mr. Vinod Kumar, GM(B), CONFED, Chandigarh and Mr. Prem
Singh,BFSO,Ambala City.
Rohtak Mr. P.C. Meena, Dy. Commissioner; Mr. A.S. Mann, A.D.C.; Mr.
A.R. Godara, A.D.F.S.,CMD; Mr. Vinod Kumar, G.M. CONFED,
Chandigarh; Mr. Parmodh Sharma, D.F.S.C.; Mr. D.K. Singla,D.M.
CONFED; Mr. K.C. Garg, D.M.,FCI; Mr. Harbans Lal, Manager
Procurement,FCI and Mr. Mahavir Sharma, Asstt. Registrar,G.M Coop.
Store.
Faridabad Mr. Barjinder Singh, Dy. Commissioner; Mr. Pushpender
Singh Chauhan, SDM; Mr. A.R. Godara, Addl. DFC, Chandigarh; Mr.
Vinod Kumar, GM, CONFED; Mr. Ram Avtar, DFSC; Mr. Anil Malik, DM,
CONFED, Faridabad and Mr. K.K. Barua, Area Manager, FCI.
Mewat (Nuh) Mr. Mehtab Singh, Dy. Commissioner; Mr. S.S. Dalal,
Addl. Dy. Commissioner; Mr. Atul Dwivedi, SDM; Mr. Inder Pal B ishnoi,
SDM; Mr. K.K. Goyal, DFSC and Mr. Ashwani K. Gaur, Dy. Director.
Palwal Mr. M.K. Mahajan, Dy. Commissioner; Mr. Ram Niwas, DSFC;
Mr. Shankar Lal Gupta, AFSO; Mr. Amrik Singh, DSP and Mr. R.D. Mehra,
Distt. Manager, CONFED.
Bhiwani Mr. Vikas Gupta, Dy. Commissioner; Mr. R.C. Bidhan, ADC; Mr.
Azad Singh, DFSC; Mr. A.K. Goel, Dy.DF&SS(HR),Ch.D; Mr. Kamal Singh
DPRO; Mr. K.K. Varsmnei, DPO & ADC; Mr. Dharam Pal Singh,
Manager(D),FCI; Mr. L.R. Jain, Area Manager,FCI, Hissar; Mr. Subhash
Singh , Distt. Manager, HAFED and Mr. T.K. Mittal, D.M., CONFED.
Hissar Mr. O.P. Sheoran, Dy. Commissioner; Mr. Amardeep Jain, SDM;
Mr. D.P. Singh, City Magistrate; Mr. Pankaj Nain, ASP; Mr. Dharmvir
7/28/2019 Report on the State of Haryana - Central Vigilance Committee
11/126
Goyat, Distt. Food & Supply Controller; Mr. D.C. Sharma; DFSO; Mr.
Subhas Sihed, Asstt. Food & Supply Officer; Mr. S.S. Bishn oi, Distt.
Manager, CONFED; Mr. B.S. Bhati, Area Manager, FCI; Mr. Jaivir Singh,Asstt. Controller Legal Meteorology and Mr. Jaipal Singh, Inspector, Legal,
Meteorology.
20. Members of the Committee who visited the State are Ms. Meenakshi
Chauhan, Ms. Naomi Chandra and Mr. Shohit Chaudhry (being members
of Legal Team), Mr. K.K. Mittal, Director and Mr. J.K. Bhutani, Section
Officer. Mr. S.C. Rawal, a former Registrar of Delhi High Court and
appointed as Secretary by the Chairman, has been performing functions
of the Secretary of the Committee. Dr. N.C. Saxena, however, could not
offer any assistance to the Committee perhaps due to his other
engagements.
21. The Committee is submitting its report which has been divided into various
Chapters like distribution of food grain, appointment of FPS dealers,
viability, identification of BPL, wheat flour (atta), coupon system, diversion
of foodgrains, vigilance, enforcement & complaint mechanism and
computerization . Overview has been given of the PDS in the State and
recommendations made. An attempt has been made to make each
Chapter self-contained and there is possibly a repetition at various places.
Delhi
(Justice D.P Wadhwa)
ChairmanCentral Vigilance Committee
on Public Distribution System
Broad Overview
7/28/2019 Report on the State of Haryana - Central Vigilance Committee
12/126
1. There are 21 districts in the State of Haryana. There are 9570
(2751 Urban and 6819 Rural) Fair Price Shops (FPS) catering to
54,32,815 ration cards. The population of the State of Haryana
as per 2007 census was 2.39 Crores and the projected
population as on 31.10.2008 was 2.44 Crores. As per the
Planning Commission there are 7.29 lakh families living below
the poverty line in the State. However, the survey revealed that
there are about 11.97 lakh (BPL + AAY) families below poverty
line. The State of Haryana is a wheat surplus State.
2. The Central Vigilance Committee visited the State of Haryana
from 5th - 12th, August, 2009 and 29th November to 1st December,
2009. The Committee during the visit met the officials of the
State Government in Chandigarh and discussed various issues
concerning PDS in the State. The Committee also studied of the
functioning of the Public Distribution System in the following
districts of the State- Ambala, Kurukshetra, Rohtak, Faridabad,
Mewat, Palwal, Bhiwani and Hissar. The Committee interacted
with the State Government officials, District officials, Officials of
FCI, CONFED, Consumers, FPS dealers, NGOs, Self Help Groups,
Consumer Organizations and Media etc., to assess the working of
the PDS in the State. The Committee found that Public
Distribution System in the State has failed miserably. There is a
large scale diversion from wholesale distribution to retail
distribution.
3. It seems that the Public Distribution System in the State needs to
be analysed by the senior level functionaries of the department
7/28/2019 Report on the State of Haryana - Central Vigilance Committee
13/126
and drastic changes need to be done to make the PDS in this
food surplus State workable. During the visit the Committee
examined the following aspects of the PDS regarding theImplementation of the Government Rules and Regulations and
Control Order and the compliance of the directions of the Honble
Supreme Court concerning PDS :-
i. Distribution of Food grains.
ii. Mode of appointment of FPS dealers.
iii. Viability of FPSs.
iv. Functioning of Vigilance Committees.
v. Enforcement and complaint mechanism.
vi. Identification of Beneficiaries.
vii. Issuing of ration cards.
viii. Role of officials of the Department at different levels
concerning PDS.
ix. Computerisation.
4. During the visit of the Committee public meetings were
organized at different places to know the grievances of stake
holders concerning PDS. The views expressed by the people
during these public meetings are mentioned at the end of the
report as Appendix.
5. On the basis of the observations and findings the
Committee has made some recommendations in the reportwhich are enumerated in separate chapters. The Committee has
analyzed various aspects affecting PDS in the State in different
Chapters which are as under:-
7/28/2019 Report on the State of Haryana - Central Vigilance Committee
14/126
7/28/2019 Report on the State of Haryana - Central Vigilance Committee
15/126
Hamida was appointed and his rates for transportation of grain
were
Within District 6.90 per quintalOut of District- 11.50 per quintal
6.4 The rates of transportation in the previous year were Rs. 13 per
quintal for within district and out of district 20.50 per quintal. It is
pertinent to mention that the rates for the previous year was
double the rates of the current year. The transporter himself
quoted such low prices and later in August he refused to
Continue as transporter even at the cost of forfeiting his security
amount.
6.5 Committee on perusal of transporters file observed that the
transporters usually have one or two vehicles. Officer of CONFED
informed the Committee that as the number of vehicles are not
sufficient the transporter hires trucks for supply of foodgrain to
FPS. As the private trucks are hired by the Transporters to carry
and transport foodgrain the question arise that why the private
truck owners transports the foodgrain in lesser rates than the
market rates. These facts give direct inference about the
Diversion of the foodgrains during transportation. Similar facts
were observed while perusing transportation files pertaining to
other districts.
6.6 Further, it is to be noted that no officer of CONFED accompanies
the truck while transportation of the foodgrain from procurement
agency to the fair price shops. There is no monitoring by the
CONFED officers on the transportation of foodgrains. Once the
7/28/2019 Report on the State of Haryana - Central Vigilance Committee
16/126
foodgrain is lifted and loaded in the truck from the godowns of
the procuring agencies it is totally in the hands of the
transporters. The transporter and whether he delivers the fullquantity at fair price shop or not.
6.7 The Department officials are duty bound to check whether the
foodgrain have reached the fair price shop or not. The
department has to certify that the 100 % foodgrain has been
delivered by the transporter and give the same to the CONFED
before the bills pertaining to same is cleared. However, the
Committee observed that the department officials are not
checking the delivery of the foodgrain by CONFED appointed
transporters at the fair price shops. This clearly indicates the
connivance of CONFED officers, department officials and the
transporters. Strict Penal actions should be taken against
officers and transporters if found guilty of diversion of foodgrain.
6.8 The Committee observed that the shops are not opened for
distribution of food grains and other items through out the
month. It was also observed that the time schedule adopted by
the Department for distribution is not proper. The time schedule
for deposit of the money by the FPS dealers, issuing of release
orders, lifting from the State agencies by CONFED and
distribution by CONFED to the FPS dealers has been fixed in such
a way that the actual duration for distribution for the FPS dealeris only 10-15 days. This is in violation of the direction of Honble
Supreme Court.
7/28/2019 Report on the State of Haryana - Central Vigilance Committee
17/126
6.9 Presently the APL beneficiaries entitled to 35 kg foodgrain
however, it was found that they are not getting any foodgrain.
The BPL beneficiaries in some districts are getting 28 kg and insome districts they are getting 31 or 32 kg foodgrain. However,
AAY beneficiaries are getting 35 Kg foodgrain.
6.10 In the State of Haryana there large number of labours from
different States keep migrating in search of work. The Committee
feels that there should be some provision of food security for the
migrant labour who come in search of job or work from their
native places temporarily. They could be registered as
temporary residents and provision should be made for providing
PDS food grains etc. to them also.
6.11 The Committee during the visit to the State came across many
cases of damaged/ rotten foodgrain supplied to the consumers
under PDS. It was informed by the District Officials that
generally the quality is proper however at some places the grain
is damaged because of the non-availability of storage space with
the procurement agencies in Haryana. They have to store the
foodgrains sometimes in the open. The Committee feels that
State Government must take immediate steps for creating
storage space so that the foodgrains is not damaged and the
proper quality is available to the consumer though PDS.
7 Quality Control / Joint Sampling of food grain -
The Committee during the visit observed that joint sampling of
foodgrain is not done by the agencies at the time of lifting of the
food grains. No sample is provided to the FPS dealers. This is
again violation of the Public Distribution System (Control) Order,
7/28/2019 Report on the State of Haryana - Central Vigilance Committee
18/126
2001 which provides for the mandatory display of samples by the
FPS dealer in his shop. The samples are essential to ensure that
the same quality is being distributed by the FPS dealer which hasbeen delivered by the wholesale agents. Though the clause 9(v)
and 10 (1) imposes duty on FPS dealers and CONFED to display
samples of foodgrains, same was found to be not followed all the
districts visited by the Committee. It was observed that the
provisions of the Control Order are not implemented properly
and the officers responsible for monitoring the same shall be
made accountable for such lapses.
8 Mode of Appointment of Dealers :-
8.1 As per Clause 2(k) of the Haryana Public Distribution System
( licencing and control Order, 2009 the District Food and
Supplies Controller of the concerned district. Clause 2 (i) of the
Haryana Public Distribution System (licencing and control Order,
2009 provides that the Lincence of a fair. The license of a fair
price shop shall be granted for a minimum number of 600 ration
cards not exceeding 1200 ration cards, but in rural areas a
village shall be treated as one unit for this purpose and as such
the license for the fair price shop may be issued even for less
than 600 ration cards of the village.
8.2 The Haryana PDS control Order 2009 of the State provides thatLicensing authority shall call for applications through local
publicity and munadi in the local area of the Fair Price Shop. A
committee comprising District Food and Supplies Controller,
Inspector Food and Supplies concerned and the Sarpanch of
7/28/2019 Report on the State of Haryana - Central Vigilance Committee
19/126
village in rural area and District Food and Supplies Controller,
Inspector Food and Supplies concerned and Municipal Councilor
in urban area shall recommend to the licensing authority thename of the eligible applicant as per these priorities/ preference.
However, it was observed by the Committee that the procedure
of appointment of FPS dealer is vice versa. The persons having
political links first get recommendations from the Sarpanch or
Municipal councilor and apply for the licence. The department on
obtaining the applications publicize the vacancy through munadi
which is mere formality. Such persons are given time to show list
of 600 families and on submission of the list he is given lincence.
It is only on the basis of the resolution of Panchayat, the FPS
dealership is given. It was also seen that in practice
recommendations of local politicians, MLAs, Municipal Councilors,
Sarpanch and other influential people are the only qualification
for getting FPS licences. Other conditions as prescribed in the
Haryana State Control Order of 2002 and latest order of 2009 are
not followed while granting the FPS dealership. No vacancy is
advertised.
8.3 The provisions of the Haryana Control Order 2009 recognizes
and gives legitimacy to political interference in appointment of
dealers by making the Sarpanch and the Municipal Councilor as
members of the rural/urban committees appointed for
recommending the applicants for allotment of licences for FairPrice Shops. The Committee is of the view that political
involvement in the grant of licences has to be completely
eliminated.
7/28/2019 Report on the State of Haryana - Central Vigilance Committee
20/126
8.4 Clause 2(h) Provides the eligibility condition for the applicant.
Provides that a person having 10+2 or its equivalent
qualification, not less than 21 years of age and is a resident ofthe locality for which the fair price shop license in applied for.
However, in case of a Group like Self Help Group and Sakshar
Mahila Samooh, the condition of 10+2 pass and age will not
apply; The Order provides for preference to unemployed
graduates while granting FPS licence. The Committee is of the
view that as the FPS is not a viable unit giving preference to
unemployed graduates serves no purpose. As the income of FPS
dealer is not much they indulge in malpractices to make profits.
9 Viability of Fair Price Shops :-
9.1 During the visit to the State the Committee visited number of
shops in various Districts. The Committee feels that stand alone
FPS is not profitable. There was a general demand to increase
the commission of the FPS, at some places there was also a
demand from FPS dealers that a fixed salary may be given to
them for running the FPS.
9.2 The Committee is of the view that since any amount of increase
in commission would not make an FPS viable, it is, therefore,
necessary that FPS dealers should sell grocery items along with
PDS items. The condition should be that in the Grocery / Kirana
shop, the sale should only be non PDS commodities. TheCommittee feels that the condition should be put in the licence
that FPS owner must have a running Kirana / Grocery shop. In
case of default or non compliance with the condition, the FPS
licence should be revoked.
7/28/2019 Report on the State of Haryana - Central Vigilance Committee
21/126
9.3 Efficient retailing would require pre-conditions such as
experience and ability to undertake certain investment andsustain an adequate return. FPS licences should be granted to
people/ groups who have adequate liquidity of fund. Integrity and
rapport of person in the local area are other aspects to be
considered. Pattern of ownership of FPS can have important
bearing on their viability. Self Help Groups and Cooperatives can
be given priority for granting licences to rationalize the cost
structure of FPS.
9.4 The Order provides for preference to unemployed graduates
while granting FPS licence. The Committee is of the view that as
the FPS is not a viable unit giving preference to unemployed
graduates serves no purpose. It is a well documented fact that
the FPS owner is in business for the purpose of diversion or for
political influence or other influence that he can wield by being
an FPS retailer. There is massive corruption woven around it
where the participants are the shop keeper, officials of the
Department / Corporation, transporters and last but not the least
the politicians. The Committee is of the view that the reservation
for various categories provided in the Haryana Public Distribution
(Licensing and Control) Order, 2009 appears rather unnecessary.
FPS licences should be allotted to persons of the locality who are
already running kirana/ grocery shop or have the capability to doso. Though there is a clamour for allotment for FPS, the stand
alone FPS does not rehabilitate or support sustenance of any
category or gender. It rather breeds corruption.
7/28/2019 Report on the State of Haryana - Central Vigilance Committee
22/126
10 Enforcement, Vigilance and Complaint Mechanism :-
10.1 There is no separate system of implementation of enforcementand vigilance in the PDS as currently there is no separate cell for
the purposes of monitoring PDS. It is recommended that a
separate division of enforcement and vigilance of PDS be started
in the State in order to deal with the specific problems of PDS.
10.2 The rate, at which action is taken against the errant FPS dealers
and errant officials, is abysmally low. Thus there is no effective
deterrent to stop malpractice in PDS. It is necessary that there
should be special squads for enforcement of PDS. The squads
should be responsible for conducting raids, surprise checks,
conducting prosecutions, recommending Departmental action
against the officials and taking action against the defaulting
officer under the Haryana PDS Control Order 2009, Essential
Commodities Act 1955, Prevention of Corruption Act, 1988 and
Indian Penal Code. The Haryana PDS control Order 2009
provides that if any Licencee contravenes any of the terms or
conditions of the license or of any control order issued under the
Act the licence shall be suspended immediately without giving
any notice. The licensing authority shall take strict action which
included forfeiture of the security deposit in full and suspension
of licence; cancellation of the license and forfeiture of the
security deposit in full; or registration of criminal case as perprovisions of the Act. However, it was observed that no action is
taken by the officials against errant FPS dealers. PDS operation
should be based on the principle of zero tolerance. Any
infraction of the Rules and Regulations or Instructions should
7/28/2019 Report on the State of Haryana - Central Vigilance Committee
23/126
invite strict action not only against the FPS owner but also the
concerned officials.
10.3 The Committee found that most of the FPS dealers do not have
proper weights and mostly the certificates are obtained without
actually checking the weighing machines. The officials of the
Legal Metrology department should also be made accountable
for any act of omission or commission in fulfilling their duties.
10.4 The State should set up Vigilance Committees at the State and
District levels also to keep an eye on the Public Distribution
System. Date, Place and time for the meeting of the committees
should be fixed in advance. Vigilance Committees at various
levels be strengthened by including the NGOs, Self Help Group,
Consumer Organisations and the educated youth in the Vigilance
Committee at various levels. The meetings of the Vigilance
Committees must be convened regularly.
10.5 The Village/ FPS level committee should also meet regularly
every month. Minutes of the meetings of the vigilance
committees should be recorded. Follow up action should be
reviewed in the next meeting.
10.6 There is no effective and systematic complaint redressal
mechanism for the common people. In the absence of a
customized complaint redressal system, most of the grievances
of the common man go unheard and unattended, encouraging
the corrupt practices by the dealers and the officials. It is
recommended that an effective complaint redressal system for
7/28/2019 Report on the State of Haryana - Central Vigilance Committee
24/126
PDS related grievances be initiated wherein the beneficiaries
may register and also follow up their complaints.
10.7 State should set up a 24 hours toll free helpline where a
beneficiary can lodge his complaint. The toll free number should
be printed or stamped on the Ration Card. There should be a
system of the follow up of the complaint. A post of
Ombudsman/Regulator should be created for PDS. The
Ombudsman/Regulator should look into complaints including the
complaints received through the helpline and take appropriate
action against the defaulting licencees and the officials
concerned.
11 Indentification of Beneficiaries
11.1 During the visit to the State there was a general complaint that
the deserving people are not having the ration cards and those
who are well to do and prosperous are included the BPL
category. There are large scale exclusion and inclusion errors in
the survey done for identification of BPL families. Committee
feels that to make the PDS purposeful it is most essential that
survey should be done by an independent agency which can
work without any political interference and the survey is
conducted without any fear and favour. The Committee feels
that Registrar General of India may be entrusted this work ofidentification since they have necessary experience in such work
and also be perceived as a neutral agency.
7/28/2019 Report on the State of Haryana - Central Vigilance Committee
25/126
11.2 The Committee also feels that the State Government should
have periodical checking of ration cards and there should be
continuous process to weed out bogus cards as provided in para2 of the Annexure to the Public Distribution System (Control)
Order, 2001. It is also suggested that a list of the BPL families
should be displayed at the FPS.
11.3 The committee was informed that the correct figures have not
been collected during the 2004 BPL survey due to which there
was discontentment amongst the public. Hence the survey was
cancelled and a fresh survey was ordered. The fresh survey was
entrusted to Ex-servicemen. This survey was completed in 2007.
11.4 As per the Planning Commission there are 7.29 lakh families
living below the poverty line in the State. However, the survey
revealed that there are about 11.97 lakh (BPL + AAY) families
below poverty line. Since the number of BPL families found in
the survey was more than the estimates of the Planning
Commission, the State decided in year 2008 to treat 3.83 lakh
families as State BPL. The BPL cards issued within the limits
prescribed by the Planning Commission are named as Central
BPL. By an order dated 04.09.2008 it was decided that the
State will collect the APL and BPL allocation and distribute it
amongst the Central BPL and State BPL equally at 35Kg.per
month per ration card. The difference in cost between the APLwheat and State BPL wheat will be borne by the State. The quota
of the BPL has since been reduced to 33 Kg. per family per
month. BPL card holders are given wheat @ Rs.4.84 per Kg. AAY
7/28/2019 Report on the State of Haryana - Central Vigilance Committee
26/126
families are being distributed 35Kg. wheat per month @ Rs.2.10
per Kg.
12 Use of ration card as an identity:-
The Committee during the visit to the State observed that ration
card is not only used as identity card but is required for availing
benefits under various schemes of the Government. This is in
violation of the provisions of Public Distribution System (Control)
Order, 2001 issued by the Central Government. The Committee
feels that ration card should be de-linked from all other schemes
and steps should be taken to ensure that it is not used as an
identity card.
13 Awareness among Beneficiaries
13.1 The Committee during the visit to the State found that there is
lack of awareness in the people about their rights and
entitlements. The Committee is of the view that for the proper
functioning of the PDS awareness is very important.
13.2 To create awareness among the people it must be ensured by
the District administration that a press release is issued at the
beginning of the month indicating the quantity issued to be FPSs,
entitlement of various categories of the beneficiaries, rates of
the commodities to be charged by the FPS dealer so that peoplecan know their rights and entitlements. To further enlighten the
peoples of their rights and entitlements, pamphlets, posters
must be published and widely circulated. Local TV channels
7/28/2019 Report on the State of Haryana - Central Vigilance Committee
27/126
7/28/2019 Report on the State of Haryana - Central Vigilance Committee
28/126
7/28/2019 Report on the State of Haryana - Central Vigilance Committee
29/126
4. As per the Planning Commission there are 7.29 lakh families
living below the poverty line in the State. However, the survey
revealed that there are about 11.97 lakh (BPL + AAY) familiesbelow poverty line.
5. In order to study the Public Distribution System in the State of
Haryana, the Committee visited Chandigarh and held discussions
with the Chief Secretary, Principal Secretary Food and Supplies
Department and other Senior Officers of the Department. The
Committee visited the office of the Haryana State Federation of
Consumers Co-operative wholesale Stores Ltd., popularly known
as CONFED which is the agency responsible for door step
delivery of the PDS food grains to the Fair Price Shops.
6. The Committee visited Chandigarh and the Districts of Ambala,
Kurukshetra, Rohtak, Faridabad, Mewat, Palwal, Bhiwani and
Hissar. Public meetings were held to get suggestions from the
general public, Fair Price Shop owners, Municipal Councilors,
Surpanch, NGOs, Self Help Groups, Consumer Organisations etc.
Meetings were also held with District Officials and field staff of
the Food and Supplies Department.
7. The State of Haryana and the Union Territory of Chandigarh have
been selected for the pilot projects on computerisation of the
Public Distribution System. The Committee invited the team ofofficers from the State responsible for the pilot project along with
the representative of Expedien_E-Solutions who gave a
presentation of the proposed system. The Committee obtained a
copy of the Detailed Project Report (DPR) and visited the PR
7/28/2019 Report on the State of Haryana - Central Vigilance Committee
30/126
Center at Ambala where the work on the computerisation project
is in progress.
CHAPTER 2
LEGAL REGIME
2.1 ESSENTIAL COMMODITIES ACT, 1955: The Essential
Commodities Act 1955 (Act) is an Act to provide, in the interest
of general public, for the control of the production, supply and
distribution of, and trade and commerce, in certain
commodities.
i. Section 3 of the Act confers powers on the Central Governmentto control production, supply, and distribution etc. of essential
commodities. Central Government has issued an order called
Public Distribution System (Control) Order 2001 (Order), which
was amended in 2004.
7/28/2019 Report on the State of Haryana - Central Vigilance Committee
31/126
ii. Stringent provisions exist in the Act and the Control Order, to
deal with any infringement of the provisions of the Act or the
Order.
iii. Section 7 provides for penalties. Any person contravening the
Order is liable to be sentenced to imprisonment, which may
extend upto 7 years and shall also be liable to fine. Sentence of
imprisonment cannot be less than 3 months unless there are
adequate and special reasons. The property in respect of which
contravention of the Order has taken place, is liable to be
forfeited to the Government and so also any vehicle used in
carrying such commodity. If a person commits offence a second
time then imprisonment cannot be less than 6 months subject to,
adequate and special reasons.
iv. A person who attempts to contravene or abets any contravention
of the Control Order is similarly liable (Section 8).
v. Section 9 provides for punishment upto 5 years or fine or both, if
the record is not maintained in terms of the Control Order or any
statement or information furnished, which is not true.
vi. Section 10 deals with offences by Companies.
vii. Section 10A has made any offence punishable under the Act
cognizable.
viii. Section 10C provides that Court may presume the existence of
such mental state where an offence under the Act requires
culpable mental state on the part of the accused. Culpable
7/28/2019 Report on the State of Haryana - Central Vigilance Committee
32/126
mental state includes intention, motive, knowledge or reason to
believe a fact.
ix. Under Section 11, a Court can take cognizance of an offence
under the Act not only on a complaint made by a public servant
but also by any person aggrieved or any recognized consumer
organization.
x. An offence for contravention of the Control Order is to be tried
summarily (Section 12A).
xi. If an accused is sentenced to imprisonment for a period not
exceeding one month and of a fine not exceeding Rupees two
thousand, no appeal can be filed.
xii. Section 14 provides that when a person is prosecuted for
contravention of any order which prohibits him from doing any
act or being in possession of a thing without lawful authority or
without a permit, license or other document, the burden of
proving that he has such an authority, permit, license or other
document, shall be on him.
2.2 The Public Distribution System (Control) Order, 2001: The
Public Distribution System (Control) Order, 2001 (hereinafter
referred to as the PDS Order 2001) has been issued by the
Central Government in exercise of powers conferred by Section 3
of the Essential Commodities Act, 1955 for maintaining supplies
and securing availability and distribution of essential
commodities under the Public Distribution System. The said
Order has been amended in 2004.
7/28/2019 Report on the State of Haryana - Central Vigilance Committee
33/126
2.3 Haryana Public Distribution System (Licensing and
Control) Order, 2002
The State of Haryana issued the Order dated 18.04.2002,regulating the sale and distribution of essential commodities,
known as the Haryana Public Distribution System (Licensing and
Control) Order, 2002 on. This order (herein after referred to as
the Haryana Control Order, 2002) provided inter alia for the (i)
Identification of families living below poverty line by the Rural
Development Department and Swarn Jayanti Sehri Rozgar Yojna
Departments in rural and Urban areas respectively, (ii) Issue of
ration cards to APL, BPL and AAY families (green yellow and pink)
respectively and periodical review and checking of ration cards,
(iii) Licensing for regulating the sale and distribution of essential
commodities and the responsibility and duties of the Fair Price
Shop owner, (iv) Monitoring the Public Distribution System
including functioning of the Fair Price Shops by the State
Government, (v) Power of search and seizure, (vi) Appeal and
(vii) The licence fee payable by the Fair Price Shop owner for
grant of licence and its renewal.
2.4 Some amendments were made to the Haryana Control Order,
2002 by Haryana Public Distribution System (Licensing and
Control) Amendment Order, 2003.
2.5 As per instructions dated 7.4.2005 joint samples ought to betaken at the time of lifting the grain from the godown by a
committee comprising of the District Food and Supply Controller/
District Food and Supply Officer/ Assistant Food and Supply
Officer, concerned District Manager/ Assistant District Manager
7/28/2019 Report on the State of Haryana - Central Vigilance Committee
34/126
CONFED, Chief Analyst of the Food and Supply Department and
representative of the depot holders Association so as to ensure
that supply of good quality of wheat to the beneficiaries.
2.6 The Director and Special Secretary, Government of Haryana,
Food and Supplies Department issued instructions vide Order
dated 21.09.2005, to all the District Food and Supply Controllers
for making the Public Distribution System efficient. These
instructions inter alia provided the following :
(i) That the provisions of Haryana Public Distribution System
(Licensing and Control) Order, 2002 be strictly enforced and if
any depot holder is found guilty action should be taken
against him immediately.
(ii) Local person should be given preference at the time of issue
of a licence.
(iii) While giving the licence for a depot it should be ensured that
the applicant is educated so that he can maintain proper
records of the work relating to the depot.
(iv) It should be ensured that the applicant for FPS depot has
sufficient space to store the food grain, Kerosene oil and
sugar.
(v) The licence for the depot should be given on the
recommendation of the Panchayat. In case such a
recommendation is not there, the depot may be allotted on
the recommendation of the local MLA/MP.(vi) The depot holder should not be less than 18 years of age.
(vii) It should be ensured that licence for a depot is not issued on
less than 600 cards in the urban areas. In rural areas the
licence for a depot may be issued taking a village as a unit
7/28/2019 Report on the State of Haryana - Central Vigilance Committee
35/126
even if the number of cards is less than 600. However no
depot should have more than 1200 cards attached to it so
that the beneficiaries do not have to travel long distance toget to the depot.
(viii) The Fair Price Shops should remain open from 8.00 am to
12.00 noon and 5.00 pm to 9.00 pm in summer and 9.00 am
to 1.00 pm and 3.00 pm to 6.00 pm in winter.
(ix) Detailed instructions on distribution and transportation of food
grain under the Targeted Public Distribution System have also
been issued.
(x) Directions were issued to the District Food & Supply
Controllers to ensure that the release orders are issued in
time.
(xi) In order to ensure supply of ration to the consumer in time
every depot holder shall deposit the cost of BPL and AAY grain
as per his entitlement with the District Manager CONFED/ Co-
operative Consumer Depot from 25th to 30th for the
distribution for next month. In case the depot holder does not
deposit the money as per his entitlement action will be taken
against him under the Haryana Public Distribution System
(Licensing and Control) Order, 2002.
(xii) District manager CONFED/ Consumer Co-operative Stores will
give information to the District Food and Supply Controller by
the 2nd day of each month about the depot holders who do not
deposit the money by the due date.(xiii) The District Manager CONFED/ Consumer Co-operative Stores
will ensure door step delivery of PDS food grain to the depot
holder by the 10th of every month and will give a certificate to
7/28/2019 Report on the State of Haryana - Central Vigilance Committee
36/126
the District Food and Supply Controller by the 15th that
delivery has been made at the door step of the FPS.
(xiv) In villages the door step delivery of food grain should be madein the presence of the village sarpanch and two panches and
signatures of the Sarpanch and the two panches be obtained
and kept in the concerned office of the CONFED.
(xv) The District Manager CONFED will give information about the
delivery of food grain at the door step of the FPS to the
District Food Supply Controller in advance by giving a route
chart. A copy of the same will be sent to the Deputy
Commissioner/ Sub Divisional Officer.
(xvi) The District Food Supply Controller will give information in this
regard to the Deputy Commissioner/ Sub Divisional Officer by
phone so that strict vigil can be kept on the transportation of
the food grain.
(xvii) It is the duty of CONFED to ensure that after lifting the food
grain from the godown delivery at the depot is made on the
same day.
(xviii) The employee/ representative of CONFED accompanying the
vehicle which goes to delivery the food grain will make an
entry of the quantity issued to the depot holder in the stock
register of the depot holder with his signatures. Besides this
he will also make an entry of the place from where the food
grain was lifted and the number of the vehicle in which the
food grain was delivered.(xix) The District Food and Supply Controller and the District
Manager CONFED will review the lifting and distribution of
food grain in meetings twice a month and will ensure that
there is no diversion of food grain during transportation.
7/28/2019 Report on the State of Haryana - Central Vigilance Committee
37/126
Information about this will also be given to the Deputy
Commissioner/ Sub Divisional Officer.
(xx) The contractor of CONFED will be paid the transportationcharges by the CONFED only after the District Food and
Supply Controller certifies that the food grain has reached the
depot.
(xxi) Participation of Panchayati Raj institutions has been ensured
in keeping a vigil on the distribution of ration items by the
depot holder.
(xxii) The Vigilance Committees have been reconstituted which will
have the following members:-
RURAL AREAS URBAN AREAS1
.
2
.
3
Sarpanch
Schedule Caste Panch
(If the Sarpanch is from
Schedule caste a
panch from other caste)Village Patwari
Municipal Councilor
Ex- Municipal Councilor
Woman representative
nominated by the Sub
Divisional Officer
If there is no Patwari in the village, village panchayat can
nominate a school teacher or an anganwari worker in his
place.
(xxiii) The vigilance committee so constituted has to ensure
distribution of PDS items in its presence and the depot holder
will get the allotment for the next month only on production of
a certificate from the vigilance committee.
7/28/2019 Report on the State of Haryana - Central Vigilance Committee
38/126
(xxiv)The participation of the Panchayati Raj institutions has been
ensured by involving the Gram Panchayats in issue of licence
for the depot in rural areas on the resolution of the GramPanchayat; attestation of D-1 forms for issue of ration cards,
addition or deletion of units in the ration cards; proper
distribution of the PDS commodities; Gram Panchayat has to
certify the receipt of PDS commodities at the depot and has to
verify the stock register for proper distribution; Gram
Panchayat will submit a report to the Panchayat Samiti once a
month about the working of the Public Distribution System.
The Panchayat Samiti will oversee the working of the Public
Distribution System and hear complaints; the Panchayat
Samiti will submit a report to the Zila Parishad once in three
months about the working of the Public Distribution System.
The Zila Parishad will have a meeting with the District Food
and Supply Controller every month about the availability of
essential commodities;
(xxv) The Deputy Commissioner will review the lifting and
distribution of the PDS commodities every month in the
meeting of the District Grievances Committee and if there is
any complaint it will be decided at the spot.
2.6 There is a provision of maintaining a PDS Diary which keeps a
record of inspections being conducted by the Inspectors. All the
officers are required to send their PDS diary to the head office by15th of every month. Every Inspector/Sub-Inspector who have
been assigned depots and all Assistant Food Supply officer have
to check the depots in his area from 15th to 25th of every month.
At the time of checking the concerned officer has to make entry
7/28/2019 Report on the State of Haryana - Central Vigilance Committee
39/126
in 25 ration cards about the checking done in that month. A
certificate has to be given in the PDS diary that no duplicate
entry of any ration card has been made in the sale register. Acertificate of the vigilance committee has to be attached with the
PDS diary.
2.7 Haryana Public Distribution System (Licensing and
Control) Order, 2009
The State has issued the Haryana Public Distribution System
(Licensing and Control) Order, 2009 on 13.07.2009 superseding
the Haryana Control Order, 2002. The new order inter alia
provides for the grant of licence to the dealers, licensing
authorities, procedure to be followed for issue of FPS licence,
responsibilities and duties of FPS dealers, requirements and
forms of accounts to be maintained by FPS dealers. The
procedure for issuance of ration cards and use thereof has been
provided in the new order. The Control Order also provides for
the enforcement procedure in the form of powers of entry,
search and seizure. There is a provision of appeal against the
order of the licencing authority and requirement of submission of
returns by the licencee. The involvement of Panchayati Raj
Institutions and Muncipal Committees / Councils have been
recognized in the new Control Order, 2009 in grant of licence to
the FPS dealers.
2.8 Appointment of Fair Price shop dealer
As per Clause 2(k) of the Haryana Public Distribution System
( licencing and control Order, 2009 the District Food and
Supplies Controller of the concerned district. Clause 2 (i) of the
7/28/2019 Report on the State of Haryana - Central Vigilance Committee
40/126
Haryana Public Distribution System (licencing and control
Order, 2009 provides that the Lincence of a fair. The license of
a fair price shop shall be granted for a minimum number of600 ration cards not exceeding 1200 ration cards, but in rural areas
a village shall be treated as one unit for this purpose and as such
the license for the fair price shop may be issued even for less
than 600 ration cards of the village.
2.9 Clause 5. (I) Licensing authority shall call for applications through
local publicity and munadi in the local area of the Fair Price Shop.
If any applicant is a graduate he shall be preferred. The order of
preference of all eligible applicants shall be as under:-
1. Self Help Group or Sakshar Mahila Group;
2. Unemployed female/ male graduate;
3. Scheduled Caste female/ male;
4. Backward Class (A) female/ male;
5. Ex-serviceman.
2.10 A committee comprising District Food and Supplies Controller,
Inspector Food and Supplies concerned and the Sarpanch of
village in rural area and District Food and Supplies Controller,
Inspector Food and Supplies concerned and Municipal Councilor
in urban area shall recommend to the licensing authority the
name of the eligible applicant as per these priorities/ preference.
2.11 Clause13. (I) No holder of a license issued under this order shallcontravene any of the terms or conditions of the license or of
any control order issued under the Act. If he contravenes any of
the said terms or conditions, without prejudice to any other
action that may be taken against him, the licence shall be
7/28/2019 Report on the State of Haryana - Central Vigilance Committee
41/126
suspended immediately without giving any notice. If the
licensing authority is satisfied that the licensee has contravened
any of the conditions of the license or is not performing hisresponsibility and duties properly, the licensing authority shall
take one or more actions against the licensee as mentioned
below:-
(i) forfeiture of the security deposit in full and suspension of
licence:
Provided that the licence may however, be validated and
suspension revoked by depositing the amount of security
by the licencee;
(ii)cancellation of the license and forfeiture of the security
deposit in full;
(iii) registration of criminal case as per provisions of the Act:
Provided that no order with regard to above mentioned
penal action shall be made under this clause unless the
licensee has been given a reasonable opportunity of being
heard.
2.12 Clause 2(h) Provides the eligibility condition for the applicant.
Provides that a person having 10+2 or its equivalent
qualification, not less than 21 years of age and is a resident of
the locality for which the fair price shop license in applied for.
However, in case of a Group like Self Help Group and SaksharMahila Smooh, the condition of 10+2 pass and age will not
apply;
7/28/2019 Report on the State of Haryana - Central Vigilance Committee
42/126
2.13 Clause-9 of the Haryana PDS control Order 2009 provides that
responsibilities and duties of the Fair Price Shop Licensees shall
includeinter alia
-
(i) sale of essential commodities as per the entitlement of ration
card holders at the retail issue price fixed by the State
Government under the Public Distribution System;
(ii)display of upto date information on a notice board at a
prominent place in the shop on a daily basis regarding-
(a) list of Below Poverty Line and Antyodaya beneficiaries;
(b) entitlement of essential commodities;
(c) scale of issue;
(d) retail issue price;
(e) timings of opening and closing of the Fair Price Shop;
(f) stocks of essential commodities received during the
month;
(g) opening and closing stock of essential commodities; and
(h) authority for redressal of grievances/ lodging complaints
with respect to quality and quantity of essential
commodities under the Public Distribution System;
(iii) maintenance of record of ration card holders (Above
Poverty Line, Below Poverty Line and Antyodaya) stock
register, issue or sale register;
(iv) furnishing of copies of specified documents namely, rationcard register, stock register, sale register to the office of
the Gram Panchayat or Nagar Palikas or Vigilance
Committee or any other body authorized for this purpose;
7/28/2019 Report on the State of Haryana - Central Vigilance Committee
43/126
7/28/2019 Report on the State of Haryana - Central Vigilance Committee
44/126
(xiii) the Fair Price Shop Owner shall keep the complete records
of the PDS items for at least two years in his/ her safe
custody;(xiv) the Fair Price Shop Owner shall give information every
month about the allocated PDS item, the quantity
distributed by him to the eligible consumers and the
balance stock etc. to any two members of the Vigilance
Committee otherwise on supply of PDS item shall be given
to the Fair Price Shop Owner for the next month. He shall
also obtain satisfaction certificate from the Vigilance
Committee regarding satisfactory distribution of all allotted
items in the previous month;
(xv) the Fair Price Shop Owner shall be responsible for making
all essential entries in the ration cards;
(xvi) the Fair Price Shop Owner shall store and sell essential
commodities only at the place specified in the license;
(xvii) behave with the consumers cordially and with due
courtesy.
2.14 Clause 15 (1) of the Haryana PDS control Order 2009 provides
the licensee shall submit to the licensing authority concerned a
true return in Form C so as to reach him not later than the fifth
day of each month, of stocks, receipts and deliveries of each of
the essential commodities pertaining to the preceding month.Clause 15 (2) says notwithstanding anything contained in sub-
clause (1), the State Government or the Director of Food
Supplies or the Collector of the District or the licensing authority
7/28/2019 Report on the State of Haryana - Central Vigilance Committee
45/126
may direct the licensee to submit a return in a form prescribed
by that authority.
2.15 Observations
It was observed during the visit to various districts in the State
that the instructions issued by the State Governments are not
being followed properly. Some of the observations are as
follows:-
(i) Timings of shops are not maintained. During the visit of the
Committee in village Arya Nagar in District Hissar, it was
found that both the FPSs in the village were closed at about
10.30 am on Tuesday. Similar was the position in village
Ghaseda District Mewat where the Committee found that the
FPS run by one Mr. Zakhir was closed at 10.50 am on Sunday
i.e. 29th November, 2009 (a working day for PDS). BPL
beneficiaries complained that they are given only 30 kg wheat
once in three months. The shop opens once or twice a month
and shopkeeper always says that ration has not been
allocated to him. The villagers complained that ration, if at all
distributed, is distributed after the 15th of the month. Most of
the villagers are working as labourers and they dont have
sufficient money to buy the ration in one go.
(ii) Many card holders of the village of BPL and AAY category
complained that they had not received their entitled ration for
the month of October and November, 2009. The officers of the
Department who accompanied the team did not have an
7/28/2019 Report on the State of Haryana - Central Vigilance Committee
46/126
answer to the same. It was evident that there is no
accountability of the field staff for non-distribution by the FPS
dealers. It was also told by the villagers that there is apolitical interference in the allotment and functioning of FPS.
(iii) The role of Vigilance Committees in PDS is only on paper. It
was observed that Vigilance Committees are not functioning
properly. The Utilisation Certificate is signed by the Members
of the Vigilance Committee without actually verifying the
factual position. Generally Vigilance Committee member do
not remain present during the distribution of PDS items by the
FPS dealers. The Committee was not shown any records
pertaining to the meetings of Zila Parishad with District Food
& Supply Controller.
(iv) The recommendation / resolution of Gram Panchayat
regarding the FPS licence is not based on merit and is based
on extraneous considerations. The DSO at Palwal informed
that the political interference is to such an extent that many
FPSs in the area are run by 20-25 people belonging to 2-3
families of a village who have political connections. Even the
Municipal Councilors have FPSs in their name or in the name
of their relatives / dependents.
(v) Representatives of CONFED do not accompany the vehiclewhich delivers the food grains to the depot holder. The same
was confirmed by the various CONFED officials that the
Committee met during its visit.
7/28/2019 Report on the State of Haryana - Central Vigilance Committee
47/126
(vi) Sealed samples are not being issued to CONFED and thereby
to the FPS dealers. This affects the quality of the food grain
that ultimately reaches the beneficiaries.
(vii) As per the guidelines of Honble Supreme Court of 2003 the
distribution of PDS commodities by the FPS dealers should be
through out the month. In view of the time schedule being
adopted if the payment is made in time, the release orders
are issued accordingly and delivery is also made in time, it
remains open only 15 days for distribution. Thus it is a clear
violation of the directions of the Honble Supreme Court. The
Committee feels that the time schedule should be adopted in
such a way that the FPSs are open for distribution of
commodities through out the month.
7/28/2019 Report on the State of Haryana - Central Vigilance Committee
48/126
CHAPTER 3
DISTRIBUTION OF FOODGRAIN
3.1 Public Distribution System is operated under the joint
responsibility of the Central and the State Governments. TheCentral Government has taken the responsibility for
procurement, storage, transportation and bulk allocation of food
grains to States and Union Territories and maintenance of buffer
stocks. State and Union Territory Governments are responsible
for identification of BPL and AAY families; issuance of ration
cards to eligible families; storage in state/UT godowns; licencing
and supervision over fair price shops; distribution of ration to
ration card holders through the Fair Price Shops and eliminating
leakages/ ghost cards etc.
3.2 The Food and Supplies Department Haryana is headed by the
Financial Commissioner and Principal Secretary to the
7/28/2019 Report on the State of Haryana - Central Vigilance Committee
49/126
Government of Haryana and there is a Director Food and
Supplies. At field level the District Food and Supplies Controller
heads the hierarchy and the District Food and Supply Officersand other officers are answerable to him.
3.3 The State of Haryana is a wheat surplus State. The Central
Government under its decentralized procurement policy has
allowed certain agencies of the State Government to procure
wheat on its behalf. The FCI is the agency of the Central
Government for procurement of food grain. In Haryana the State
Food and Supplies department, HAFED, FCI Haryana Region,
Haryana Warehousing Corporation, CONFED and Haryana Agro
Industries Corporation have been allowed to do procurement on
behalf of the FCI in the ratio of 20%, 33%, 20%, 9%, 9%, and 9%
respectively. All these agencies procure wheat from the farmers
who come to the Mandis set up by Haryana Agricultural
Marketing Board and store it in their godowns.
3.4 The food grain (wheat) is procured by the various agencies at the
Minimum Support Price (MSP) and stored on behalf of the FCI.
The Central Government makes allocation to the State under the
Public Distribution System as per its entitlement. The rest of the
grain is utilized for other schemes of the Central Government or
is sent to other deficit States as per the directions of the Central
Government. The FCI reimburses the State agencies for the pricepaid and storage costs.
3.5 The Committee visited the godowns of the FCI and Food and
Supplies department to see the conditions of storage. It was
7/28/2019 Report on the State of Haryana - Central Vigilance Committee
50/126
observed that the godowns owned by the FCI have scientific
storage system. However, due to very heavy procurement in the
last season a huge quantity of wheat was still stored in theMandis by all the agencies. Some wheat was stored in covered
sheds while a lot of wheat was stored in the open and even on
roads inside the Mandis by creating temporary platforms of
wooden crates. There is an urgent need for creating more
storage space in the State.
3.6 There was no system of weighment of grain either in the Mandi
or in the godowns of the Food and Supplies Department visited
by the Committee at Ambala, Rohtak and Bhiwani. The trucks are
weighed at private weigh bridges (Dharam Kanata) and after
loading they are again weighed at the same weigh bridge.
3.7 No one accompanies the trucks from the godowns to the FPS.
There is no system of checking after the food grain reaches the
Fair Price Shops and before it is distributed to the beneficiary.
Hence there is no check that the entire quantity of grain reaches
the Fair Price Shop.
3.8 There is absolutely no system of preparing samples at the
godowns of the State agencies. During the visit to the Mandi in
Bhiwani where the stock of the Department of Food & Supplies,
Government of Haryana was there for distribution through
CONFED, it was found that no samples are prepared for giving tothe wholesalers and FPS dealers. The concerned officers of the
State Government and the DM, CONFED, Bhiwani were requested
to follow the joint sampling system while lifting the food grains
and sample should also be given to the FPS dealers at the time
7/28/2019 Report on the State of Haryana - Central Vigilance Committee
51/126
of delivery. State Government officials were requested to issue
necessary instructions in this regard to all the agencies involved
in this process. No samples were found at any of the Fair PriceShops visited by the Committee. Mr. Ajay Jain Advocate, General
Secretary Yuva Shakti, at Ambala and Mr. Suresh Valmiki a social
worker at Rohtak complained of the poor quality of wheat
supplied at the Fair Price Shops. Diversion takes place in two
ways, one by selling the PDS grain in black market and secondly
by substituting good quality of grain by poor quality. The system
of joint sampling must be enforced at all the storage points and
samples must be displayed at the Fair Price Shops so that the
consumer can check the quality of food grain supplied to him.
3.9 The Committee found that the FCI has electronic weighbridges at
their godowns. At the time of delivery of food grain to the
CONFED a gate pass is issued in which the number of bags
loaded in the truck is mentioned. The gate pass is prepared
manually. A weigh check memo is prepared in the computer
system when the truck is finally weighed but copy of the weight
check memo is not supplied to the truck driver. The Committee
feels that that the truck driver should be supplied a copy of the
weigh check memo.
3.10 CONFED is the agency of the state authorized to receive the PDS
grain from the FCI or the other agencies authorized by theGovernment for procurement and transport the same to the Fair
Price Shops. CONFED is headed by a board of Directors and a
Managing Director. The District Manager (DM) is the Head of
District Office, besides him there are salesmen and storekeepers
7/28/2019 Report on the State of Haryana - Central Vigilance Committee
52/126
also. The CONFED is fully responsible for delivery of the food
grain at the doorstep of the FPS. The storekeeper is supposed to
make entries of the food grain in the stock register of each andevery depot holder. However, since no officer of the CONFED
actually accompanies the truck such entries are not being made.
CONFED has to submit daily statement of delivery of food grain
to the DM, DFSC, respective SDMs and area inspector/ AFSO.
The cost of transportation is added in the sale price of food grain
except AAY wheat which is being borne by the State. In Rohtak
City the transportation is being done by Co-operative Store. They
also have an FPS. The Committee observed that there is no
difference in the functioning of this FPS as compared to other
FPSs.
3.10 Tenders for transportation are invited every year. A Centralised
advertisement inviting tenders of door step delivery of food grain
and levy sugar are called through Director, Public Relations,
Haryana which is published in 3-4 leading newspapers of Hindi
and English. Wide publicity of NIT is given and notice of NIT is
also displayed/ exhibited at prominent places like the offices of
DC, ADC, SDM, DFSC, BDPO, Tehsildar etc.
3.11 District Level Transport Committee under the Chairmanship of
Deputy Commissioner has been authorized to open the tenders,
make negotiations and finalize reasonable and workabletransportation rates. The other members of the committee are
ADC, SDM, DFSC, and DM CONFED. The committee recommends
the rates to the Managing Director CONFED for final approval. As
7/28/2019 Report on the State of Haryana - Central Vigilance Committee
53/126
per instructions negotiations are to be conducted by the
committee with the lowest tenderer (L-1)only.
3.12 There is no fool proof system for the monitoring of transportation
of food grains from the State godowns to the FPS. Only a gate
pass is issued to the truck / vehicle carrying food grains and a
banner having marking PDS GRAIN is put on the front side of
the truck.
3.13 The State makes allocation to every district and the District Food
and Supplies Controller (DFSC) makes the allocation for every
Fair Price Shop as per the number of ration cards attached to the
shop. The allocation orders are sent to CONFED.
3.14 On the basis of entitlement, Fair Price Shop owner deposits the
cost of food grain with the authorized bank in the account of
CONFED from the 25th to 30th every month. CONFED in turn lifts
the food grain from the godowns of FCI/ State Agency and delivers
the stock at the door step of the Fair Price Shop. The Committee
was informed that food grain reaches the shops by 10th of the
month of supply. However, the Committee observed in Mewat
district that for the payment and allocation of grain following
schedule is followed :
1. Usually the payment is received from FPS dealers by 5th
-7th day of the month and same takes 3-4 days inclearance by bank.
2. By 10th or 12th day of the month the Release Order is
issued by DFSC
7/28/2019 Report on the State of Haryana - Central Vigilance Committee
54/126
3. Lifting by CONFED starts from 11th or 13th day of the
month from the godowns of the procurement and storage
agencies in Haryana for which the Release Order.4. Foodgrain is delivered at the fair price shops latest by 20th
day of the month.
3.15 The Committee found that the system is violative of the
directions of the Supreme Court which require that the Fair Price
Shops should remain open through out the month and that the
beneficiary should be allowed to draw ration in installments. The
system effectively ensures that the distribution of ration has to
take place only between the few days when the delivery is made
to the Fair Price Shop and when he has to close his balance to
deposit money for the next month. This system also encourages
corruption as the depot holder has the opportunity to tell the
beneficiary in the beginning of the month that no stock has been
received. A poor beneficiary is always likely to spend most of his
earnings immediately on receipt of wages at the beginning of the
month and may not be left with enough money to buy ration
after the 10th of the month. Since ration is distributed for a
limited number of days the shops do not remain open throughout
the month.
3.16 There were general complaints of short supply by the Fair Price
Shop owners. The Committee inspected several Fair Price Shops.
At one of the shops in Faridabad, it was found that the Fair Price
Shop owner was supplying only 28 kg. wheat to every BPL family,
7/28/2019 Report on the State of Haryana - Central Vigilance Committee
55/126
instead of their entitlement of 33 Kg. per month. He was also not
making any entry of the quantity supplied in the ration cards. In
Topkhana colony of Ambala one FPS owner Ishwar Chand hadstored PDS grain at three different premises. There were
complaints against one FPS owner Pawan Kumar of Chhibba
village in Ambala that he used to open his shop before 8.00 AM
or on Sundays only and did not open his shop on all the working
days during prescribed timings.
3.17 The Committee was also informed during public hearing and visit
to various urban colonies and villages in districts that the FPS
dealer makes the false entries in the ration cards of the
beneficiaries without actually giving the commodity.
3.18 In the year 2004 a BPL survey was conducted in the State. In this
survey all the information about the social and economic
conditions of all the families was collected on a 13 point scale.
When the information collected by the survey was sought to be
verified through the Gram Sabhas it was found that ineligible
families having good means were going to be included in BPL list
while eligible families were being left out. It was found that
correct figures have not been collected during the survey due to
which there was discontentment amongst the public. Hence the
survey was cancelled and fresh survey was ordered. The fresh
survey was entrusted to Ex-servicemen. This survey wascompleted in 2007.
3.19 As per the Planning Commission there are 7.29 families living
below the poverty line in the State. However, the survey
7/28/2019 Report on the State of Haryana - Central Vigilance Committee
56/126
revealed that there are about 11.97 families below poverty line
(BPL + AAY). The category wise break up of the families is as
under
3.20 Ration Cards as on 30.06.2009
Category Ration Cards Units Colour of
Ration CardAPL 42,35,869 1,87,80,9
46
Green
STATE BPL *3,83,36
1
16,33,481 Green with
stampCenter BPL *5,28,399 24,45,85
5
Yellow
AAY *2,85,186 12,43,240 PinkTOTAL 54,
32,815
2,41,03,5
22
3.21 Since the number of BPL families found in the survey was more
than the estimates of the Planning Commission, the State
decided in year 2008 to treat 3.83 lakh families as State BPL.
The BPL cards issued within the limits prescribed by the Planning
Commission are named as Central BPL. By an order dated
04.09.2008 it was decided that the State will collect the APL and
BPL allocation and distribute it amongst the Central BPL and
State BPL equally at 35Kg.per month per ration card. The
difference in cost between the APL wheat and State BPL wheat
will be borne by the State.
3.22 The allocation of wheat to the state of Haryana category wise is
as under
7/28/2019 Report on the State of Haryana - Central Vigilance Committee
57/126
CATEGORY ALLOCTION
(In Mt per month)
SCALE
(In Kg. per card
per month)APL 7501 (from 7/08) +15,000 Addl. Allocation
35
BPL 17,381 (from June 08) 35AAY 10,235 (from 4/08) 35
3.23 The quota of the BPL has been reduced to 33 Kg. per family per
month. BPL card holders are given wheat @ Rs.4.84 per Kg. AAY
families are being distributed 35Kg. wheat per month @ Rs.2.10
per Kg. Wheat is supplied to AAY families at Rs. 2.10 per Kg.
(additional 10 paise are charged on account of VAT (Value
Added Tax).
3.24 During the public meetings a demand was repeatedly raised that
family norm for distribution should be replaced by the earlier
system of fixing entitlement for every individual. It was stated
the present system leads the consumers to artificially divide their
families in order to obtain more quantities of PDS commodities
specially Kerosene Oil. It was stated that there are many ration
cards with only one or two members and they do not require
33Kg. wheat every month. They actually draw less ration and the
rest is sold by the Fair Price Shop owner in the black market. In
the earlier reports, this Committee has mentioned that the
individual norm has merit. The Government may consider
reverting to an individual as a unit for allotment of Public
Distribution grain.
7/28/2019 Report on the State of Haryana - Central Vigilance Committee
58/126
3.25 Mr. Vinod Mittal of the Flour Mills Association represented in
Ambala that the flour mills in the State are prepared to give
fortifiedatta
at no extra cost and will charge only for grindingand packing. The official informed the Committee that the
experiment of giving atta was tried at some places in Haryana
earlier but it was stopped due to large scale diversion involved in
the process.
3.26 It was a general agreement that atta(wheat flour) if obtained
after properly grounded wheat and delivered in sealed polypacks
would be good proposition and it would also save wheat going
into black marketing. As the shelf life of wheat flour is only 30-
45 days, a proper time line is required to be followed for
distribution. Government of Indias instructions on this subject
dated 17th January, 2008 have to be followed scrupulously.
3.27 In order to get a ration card for the first time, the consumer has
to apply in the prescribed form D-1 either in the office of District
Food and Supplies Controller/ Assistant Food and Supplies
Officer/ Inspector Food and Supplies in whose jurisdiction he
resides. The application forms are available in the Office of
DFSC/AFSO/IFS. Along with the application he has to submit two
attested passport size photographs of his family. The applicant
has to give an affidavit declaring that he has not got prepared
any ration card anywhere in India earlier and names of themembers of his family are not included in any of the ration cards.
He also has to declare his permanent address and disclose his
place/ places of residence during the last five years. He has to
give an undertaking that if any information is found to be false,
7/28/2019 Report on the State of Haryana - Central Vigilance Committee
59/126
he would be liable for action as specified in the rules/Act. The
consumer is given a slip indicating the date when he should
contact the concerned office for getting the ration card. The SubInspector/ Inspector verifies the particulars by physically visiting
the residence of the applicant and making necessary inquiries.
He also consults the voter list and census records before making
his recommendations. The DFSC/AFSO issues the ration card and
paste one photograph of the family on the same.
3.28 Mr. Raj Kishore a Municipal Councilor informed the Committee in
a Public Meeting at Faridabad that an applicant had to pay Rs.
500/- 1000/- for getting a ration card.
3.29 It was informed by the District officials in Hissar that APL ration
cards can be issued to the applicants after verification by the
Area Inspector.
3.30 The ration card has become a valuable document. It serves as an
identity card. It is required for availing benefits under various
other schemes of the government. This is in gross violation of the
provisions of the Public Distribution System (Control) Order, 2001
issued by the Central Government. Ration card should be de-linked
from all other schemes and steps should be taken to ensure that it
is not used as an identity card. The Committee also further suggests
that in place of ration card a food entitlement card may be issuedwhich can be used only for food supply under Public Distribution
System. The Committee also feels that it is appropriate if the
name of TPDS is changed to FOOD FOR POOR SCHEME.
7/28/2019 Report on the State of Haryana - Central Vigilance Committee
60/126
3.31 The Committee found that many ration cards in the State had
Rubber Stamp for changing the category. In fact all the persons
in the State BPL category have a stamp on the Green rationcards instead of having Yellow ration cards. The Committee was
informed that the ration cards were issued in the State in 2005.
Fresh BPL survey was finalized in 2007. At that time instead of
issuing new ration cards rubber stamp was affixed to change the
category. A list of all those who were earlier in APL category and
were found to be eligible for BPL ration cards was prepared
separately and their ration cards were marked with rubber stamp
to change their entitlement. Similarly if any person in BPL or AAY
category was found to have an improved status and fell in APL
category his card was accordingly stamped as APL.
3.32 The State agency CONFED is responsible to lift the foodgrain
from the procuring agencies and to deliver the same at the
doorstep of the Fair Price shops. The CONFED does not have its
own trucks and it appoints transporters through Tender process.
The transporters appointed through tender process usually do
not have sufficient trucks and usually they have one or two
trucks of their own and rest of the trucks is hired by them. The
Committee observed that the transporters quote less than the
actual rates to get the Contract. This clearly gives inference that
they recoup the losses by diverting the foodgrain. For instance
in the District of Mewat, there are three transportersi. One for Nuh,
ii. One for Firozpur Zirkha, Nagina, Punhan covering 193
FPS in total.
iii. One for Hathin
7/28/2019 Report on the State of Haryana - Central Vigilance Committee
61/126
On 6th March 09 tender was issued and 6 applications were
received. The transporter named Hamida was appointed and
his rates for transportation of grain wereWithin District 6.90 per quintal
Out of District- 11.50 per quintal
The rates of transportation in the previous year were Rs. 13 per
quintal for within district and out of district 20.50 per quintal. It is
pertinent to mention that the rates for the previous year was
double the rates of the current year. The transporter himself
quoted such low prices and later in August he refused to
Continue as transporter even at the cost of forfeiting his security
amount. Again on 29.8.2009 fresh tenders were issued for Sub
division Nuh. All tender form were rejected due to higher rates
and Tender Committee authorized D.M to get the work done for
Sept and Oct 09 only on and below the last year rates i.e Rs.
13.00 within District and Rs. 20.50 out of district due to the
election code in force . Later again on 29.10.09 and 8.11 2009
fresh tenders were issued for period of November 2009 to
March 2009. Transporter named Harkesh was appointed on the
rate as follows:
Within district: 12.50 per Q foodgrain
Out of district 20 .00 per Q foodgrain
3.33 Committee on perusal of transporters file observed that the
transporter Harkesh have only two vehicles both having capacityof 9 ton. Officer of CONFED informed that as the number of
vehicles are not sufficient the transporter hires trucks for supply
of foodgrain to FPS. As the private trucks are hired by the
Transporters to carry and transport foodgrain the question arise
7/28/2019 Report on the State of Haryana - Central Vigilance Committee
62/126
that why the private truck owners transports the foodgrain in
lesser rates than the market rates. These facts give direct
inference about the Diversion of the foodgrains duringtransportation. Similar facts were observed while perusing
transportation files pertaining to other districts.
3.34 Further, it is to be noted that no officer of CONFED accompanies
the truck while transportation of the foodgrain from procurement
agency to the fair price shops. There is no monitoring by the