This Article is From Mar 06, 2013

Action if lapses are proved, says PM after CAG report on waived farmer loans

Action if lapses are proved, says PM after CAG report on waived farmer loans
New Delhi: After the government's auditor reported serious problems with a Rs 52,000-crore scheme intended to help farmers by writing off their debts, the Prime Minister today said, "If irregularities are found, we will take stringent possible action."

A report shared with Parliament yesterday by the Comptroller and Auditor General or CAG said that there were lapses in one out of every five cases that were covered by the scheme, which was launched in 2008 by Dr Manmohan Singh, and is credited with helping his government return to power a year later.

The BJP has alleged a Rs 10,000-crore scam.  The party cites the CAG report to allege that 34
lakh people who were ineligible benefited from the scheme, while 24 lakh farmers who did qualify for assistance were overlooked.

"It is a case of clear scam. Bank officials in connivance with the middlemen siphoned off the money of farmers," said the BJP's Ravi Shankar Prasad.

The CAG report says Rs 13 crore were over-paid to farmers who got benefits in excess of their entitlements. Another Rs 20 crore was given to farmers who were ineligible for the scheme.

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