A report by the centre has said the machines were unsafe for operators.
Substandard Chinese power tiller were given to farmers in Madhya Pradesh under the centre's farm mechanisation scheme in Madhya Pradesh, according to a report by four-member committee headed by MP Agro managing director Shrikant Banoth. The substandard power tillers were given to farmers between 2017 and 2019 in 11 tribal-dominated districts, sources have said. They also alleged a massive scam in plantation along the banks of the Narmada.
Power tillers are mini-tractors that can till, plough, sow seeds, plant seedlings, spray fertiliser and harvest crops, among other tasks. They were given to farmers under the Krishi Yantrikaran Yojna or farm mechanisation scheme of the centre.
NDTV has seen a report by the committee. It says not only the power tillers were bought by a firm without any tender, but many of the supplies were made only on paper. Dealers allegedly gave fake acknowledgements certificates of farmers and got funds credited into their accounts.
The scheme was meant to raise farm productivity in Madhya Pradesh with better technology in the hands of farmers. But the farmers were given cheap Chinese power tillers in violation of the direct beneficiary transfer or DBT scheme, sources have said.
Rules were manipulated - such as declaring MP Agro as the nodal agency for state and central schemes for farmers - in an attempt to transfer subsidies into the accounts of some firms instead of farmers, sources said.
A report by the centre has said the machines were unsafe for operators. NDTV has seen the report.
The alleged scam has kicked up a political row between the ruling BJP and the Congress in the state.
"We have got the report and will take action against those involved," Madhya Pradesh Horticulture Minister Bharat Kushwaha said.
State Agriculture Minister Kamal Patel while targeting the Congress alleged the opposition party was responsible for the equipment supply scam.
"They were given funds for providing power tillers to farmers, but they gave it to power dealers. They misappropriated funds and the Lokayukta is looking into it. The accused would be behind bars soon," Mr Patel said.
Former Horticulture Minister Sachin Yadav criticised the state minister's allegations as baseless. "I was the one who ordered a probe in October last year, but no action was taken. The BJP then came to power by toppling our government through corrupt means," Mr Yadav said.
In the Namami Devi Narmade Project, a separate probe says Rs 2 crore has been siphoned off in Jabalpur district.
During the previous BJP government, over 1.21 lakh places were identified for plantation and 7.10 crore saplings were planted, while the data offered by the Guinness Book of World Records officials to the state government show only 5,540 plantation sites were identified and over 2.22 crore saplings were eventually planted.
A complaint has been filed with the anti-corruption authority Lokayukta, alleging 300 employees were transferred on a single day from the Horticulture Department in 2019 without the approval of the Chief Minister's coordination committee.