M A I N   N E W S

Farm loan scam: PM promises strict action
Girja Shankar Kaura & Ajay Banerjee/TNS

New Delhi, March 6
As Parliament today witnessed uproar by members, who cut across party lines in demanding indictment of the swindlers in the farm loan waiver scheme in the wake of CAG report, Prime Minister Manmohan Singh promised “stringent possible action” against defaulters, if any.

Making a suo motu statement in the Rajya Sabha, the PM said, “The reference is to the CAG report on the loan waiver scheme. This is a matter that should be entrusted to the Public Accounts Committee as per normal practice. If there are any irregularities, which have been shown, I assure the House that we will take stringent possible action against the defaulters.”

However, Opposition members were unimpressed by his assurance and trooped into the Well of the House raising slogans against the government. This forced Deputy Chairman PJ Kurien, who was in the Chair, to adjourn the House for 10 minutes. Similar scenes were witnessed in the Lok Sabha as well where the uproar on the issue forced question hour to be adjourned. The CAG yesterday submitted a report on loan waivers, doled out to the ailing farm sector between 2008 to 2012, saying thousands of beneficiaries were ineligible while eligible ones were left out suggesting there was prima facie evidence of tampering, overwriting and alteration of records.

It said guidelines for the implementation of the scheme were violated with a private commercial bank shown to have received reimbursement for loan of Rs 164 crore extended to micro-finance institutions (MFIs). The government has agreed to have a debate on the matter even as the CAG report, as per procedure, is referred to the Public Accounts Committee, nowadays headed by BJP MP Murli Manohar Joshi. Parliamentary Affairs Minister Kamal Nath said, “It is not only a matter of grave concern, but it is a matter of shame.”

Raising the issue during zero hour, Leader of Opposition Sushma Swaraj referred to the CAG report and said thousands of actual beneficiaries were denied its benefits, while those who were not eligible got the relief.

Demanding that officials of banks and auditors should be questioned and FIRs filed, she said the RBI had also convened a meeting of banks in January and given them time to rectify the mistakes, “but no action was taken”. Swaraj also sought a structured discussion in the House.

Leaders of several parties joined in seeking action against those involved in the episode. Sanjay Nirupam of the Congress also joined in.

Even as the Prime Minister assured action, BJP members kept agitating, forcing the House to be adjourned for 10 minutes.

If there are any irregularities, which have been shown, I assure the House that we will take stringent possible action against the defaulters. — Manmohan Singh, PM It is not only a matter of grave concern, but it is a matter of shame. — Kamal Nath, Parliamentary Affairs Minister