Maharashtra food scam: Private companies eat up Rs 1,000cr meant for poor

November 3, 2012

poor_pay

New Delhi, November 3: Private companies have hijacked the government's flagship scheme to provide food to poor children and their mothers, the Integrated Child Development Scheme (ICDS), with contractors in Maharashtra alone controlling Rs 1,000 crore worth of supplies in contravention of Supreme Court orders, a report of the SC commissioners office has said.

The SC orders bar contractors from supplying rations under the scheme. It only permits village communities, self-help groups and mahila mandals to buy grains and prepare food for children.

The commissioners' report, submitted to the court on Friday, warned that the contractor-corporate lobby had a firm grip over ICDS rations supply business, worth Rs 8,000 crore, in several states. It specifically referred to Karnataka, Uttar Pradesh and Meghalaya, besides Maharashtra.

Detailing Maharashtra's case, the report said private companies had floated fronts in the names of 'mahila mandals' or women's organizations to corner the lucrative Rs 1,000 crore annual supply of rations.

The ICDS is India's primary social welfare scheme to tackle malnutrition and health problems in poor children below 6 years of age and their mothers. It is considered the backbone of government's efforts to improve the dismal family health indices in India - some of the worst even among developing countries.

The commissioners recommended that an independent investigation be conducted under the apex court's supervision to investigate the possible nexus "between politicians, bureaucrats and private contractors in the provisioning of rations to ICDS, leading to largescale corruption and leakages".

The report, prepared by the principle advisor to the commissioners, said the Maharashtra chief minister had been made aware of the scam by the commissioners as well as the National Commission for the Protection of Child Rights. They said the fact that the corrupt system continued unchecked showed the "level of influence" the contractors had over the "levers of power in Maharashtra".

This report lays bare the modus operandi companies used to corner the lucrative contracts in Maharashtra. The state government first changed its rules in 2009 to allow not only community-based organizations but also 'women's institutions' to bid for the supply - a loose enough term to permit any contractor, company or agency with women on board to bid for the contracts.

Only three of these 'women's institutions' got contracts for the entire state's ration supply which is worth over Rs 1,000 crore annually. None of these three mahila mandals - Venkateshwara Mahila Audhyogic Sahakari Sanstha, Mahalaxmi Mahila Grhaudyog & Balvikas Buddhesiya Audhyogic Sahakari Sanstha and Maharashtra Mahila Sahakari Grahudhyog Sanstha Limited -- had any production capacity of their own.

The three mahila mandals each formed sub-committees with select members handling complete control of administration, finances and operations of the organizations. The sub-committees then gained legitimacy by directly contracting with the state government, securing bank guarantees as well as opening separate bank accounts.

The sub-committees went on to contract five companies to supply the rations. But the members on board these sub-committees were all relatives of the owners of the five companies.

In other words, the companies had formed shell agencies to bid for the contracts on the pretext of being community-based women's organizations.

Venkateshwara formed two sub-committees. One sub-committee farmed out contract to Swapnil Agro Limited owned by Ulhas Pagariya. The sub-committee comprised Pagariya's wife and two relatives. The second sub-committee gave a contract to Paras Agro Private Limited, with one Satishrao Munde as managing director. Munde's wife and daughter comprised the sub-committee.

Similarly, Mahalaxmi formed three sub-committees giving out contracts to Indo Allied Protein Foods run by Rajan Shankar Jadhav, Sai Food and Sai Food Products owned by Pradip Auradkar and Sanjay Auradkar and Kota Dal Mill based in Rajasthan.

Maharashtra Mahila Sahkari, which is actually a company and not a society with Rama Agrawal as vice-chairman, gave the contract to Sagar Foods run by her father-in-law Prabhudayala Agarwal.

The principle advisor to the court commissioners, Biraj Patnaik, refused to comment when contacted.

His report said lab reports testing the quality of food grains supplied was also suspect as all three mahila mandals went to the same private lab but government testing found the food lacking. The report said media had earlier highlighted how the ration was of such bad quality that it was at times sold as cattle feed and many times, fungi and termites were found in them. A case on the matter is being heard in the high court as well.

The author added that the report should be seen as a preliminary inquiry and not a comprehensive indictment of the parties. They have asked for court directions for an independent authority carrying out an investigation. The apex court gave the state the opportunity to respond to the report and posted the next hearing for November 23.


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Agencies
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Mumbai, Mar 22: The total number of coronavirus positive patients in Maharashtra has risen to 74 with 10 more positive cases reported in the last 24 hours, officials said.

Of the 10 new cases, 6 are in Mumbai and 4 in Pune, they said on Sunday.

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News Network
February 27,2020

New Delhi, Feb 27: The death toll in the communal violence in northeast Delhi over the amended citizenship law reached 32 on Thursday, senior officials said.

It was at 27 till Wednesday night.

"Five more deaths recorded at GTB Hospital, so death toll at that hospital has gone up to 30, taking total toll to 32," a senior Delhi Health Department official told news agency.

The Lok Nayak Jai Prakash Narayan Hospital had reported two fatalities on Wednesday.

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News Network
January 13,2020

Jan 13: For the first time in years, the government of India’s Prime Minister Narendra Modi is playing defense. Protests have sprung up across the country against an amendment to India’s laws — which came into effect on Friday — that makes it easier for members of some religions to become citizens of India. The government claims this is simply an attempt to protect religious minorities in the Muslim-majority countries that border India; but protesters see it as the first step toward a formal repudiation of India’s constitutionally guaranteed secularism — and one that must be resisted.

Modi was re-elected prime minister last year with an enhanced majority; his hold over the country’s politics is absolute. The formal opposition is weak, discredited and disorganized. Yet, somehow, the anti-Citizenship Act protests have taken hold. No political party is behind them; they are generally arranged by student unions, neighborhood associations and the like.

Yet this aspect of their character is precisely what will worry Modi and his right-hand man, Home Minister Amit Shah. They know how to mock and delegitimize opposition parties with ruthless efficiency. Yet creating a narrative that paints large, flag-waving crowds as traitors is not quite that easy.

For that is how these protests look: large groups of young people, many carrying witty signs and the national flag. They meet and read the preamble to India’s Constitution, into which the promise of secularism was written in the 1970’s.

They carry photographs of the Constitution’s drafter, the Columbia University-trained economist and lawyer B. R. Ambedkar. These are not the mobs the government wanted. They hoped for angry Muslims rampaging through the streets of India’s cities, whom they could point to and say: “See? We must protect you from them.” But, in spite of sometimes brutal repression, the protests have largely been nonviolent.

One, in Shaheen Bagh in a Muslim-dominated sector of New Delhi, began simply as a set of local women in a square, armed with hot tea and blankets against the chill Delhi winter. It has now become the focal point of a very different sort of resistance than what the government expected. Nothing could cure the delusions of India’s Hindu middle class, trained to see India’s Muslims as dangerous threats, as effectively as a group of otherwise clearly apolitical women sipping sweet tea and sharing their fears and food with anyone who will listen.

Modi was re-elected less than a year ago; what could have changed in India since then? Not much, I suspect, in most places that voted for him and his party — particularly the vast rural hinterland of northern India. But urban India was also possibly never quite as content as electoral results suggested. India’s growth dipped below 5% in recent quarters; demand has crashed, and uncertainty about the future is widespread. Worse, the government’s response to the protests was clearly ill-judged. University campuses were attacked, in one case by the police and later by masked men almost certainly connected to the ruling party.

Protesters were harassed and detained with little cause. The courts seemed uninterested. And, slowly, anger began to grow on social media — not just on Twitter, but also on Instagram, previously the preserve of pretty bowls of salad. Instagram is the one social medium over which Modi’s party does not have a stranglehold; and it is where these protests, with their photogenic signs and flags, have found a natural home. As a result, people across urban India who would never previously have gone to a demonstration or a political rally have been slowly politicized.

India is, in fact, becoming more like a normal democracy. “Normal,” that is, for the 2020’s. Liberal democracies across the world are politically divided, often between more liberal urban centers and coasts, and angrier, “left-behind” hinterlands. Modi’s political secret was that he was that rare populist who could unite both the hopeful cities and the resentful countryside. Yet this once magic formula seems to have become ineffective. Five of India’s six largest cities are not ruled by Modi’s Bharatiya Janata Party in any case — the financial hub of Mumbai changed hands recently. The BJP has set its sights on winning state elections in Delhi in a few weeks. Which way the capital’s voters will go is uncertain. But that itself is revealing — last year, Modi swept all seven parliamentary seats in Delhi.

In the end, the Citizenship Amendment Act is now law, the BJP might manage to win Delhi, and the protests might die down as the days get unmanageably hot and state repression increases. But urban India has put Modi on notice. His days of being India’s unifier are over: From now on, like all the other populists, he will have to keep one eye on the streets of his country’s cities.

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