PDS scam may be bigger than it appears

It is suspected that rations worth over ₹75 crore were siphoned off between January and July this year

LUCKNOW: The multi-crore public distribution system (PDS) scam in UP is turning out to be bigger.

An audit by food and civil supplies authorities had revealed that subsidised rations meant for underprivileged people were siphoned off and sold at high rates in the open market. This was done by owners of fair price shops in 39 districts across UP by misusing Aadhaar numbers of people in the period April-July, 2018.

Rations worth over ₹40 crore were allegedly siphoned off during this period. However, a further audit revealed that a similar practice was also prevalent in the previous financial year (between January and March), said a senior official of the food and civil supplies department.

The audit confirmed that over 50,000 fraudulent transactions were done in different districts across UP in January. “Such transactions also came to fore in February and March-2018,” said Alok Kumar, food and civil supplies commissioner. It is suspected that rations worth over ₹75 crore had been siphoned off between January and July this year. Further data is yet to be reviewed to ascertain whether similar transactions happened before January 2018 or not.

Alok Kumar had detected this anomaly, which was allegedly committed by a nexus of some supply inspectors, computer operators and fair price shops owners. The commissioner had got registered over 200 FIRs of fraudulent transactions before the UP Special Task Force took over probe in the matter on September 4 and arrested seven people from Lucknow and Noida around 10 days ago.

A senior STF official said the fraudulent transactions of rations were allegedly done at 1,075 fair price shops in UP and involvement of 150 supply inspectors was suspected in the matter.

Moreover, Aadhaar numbers and thumb impressions of around 859 people had been used for the fake transactions, he added. As per the figures available, the anomalies were detected in some fair price shops across 39 districts while verification of transactions in some other districts was still to be done, said the official.

Significantly, the fraud was committed in cities where point of sale devices (PoS) had been installed at ration shops in urban areas. PoS machines are now also being installed at rural PDS shops also and a beneficiary is given ration only after his thumb impression, as given on the Aadhaar card, is verified.

He said maximum anomalies were detected in Allahabad district followed by Meerut, Ghaziabad and Lucknow.