This Article is From Mar 05, 2013

Government auditor's (CAG) report tabled in Parliament says farm loan funds siphoned off

Government auditor's (CAG) report tabled in Parliament says farm loan funds siphoned off

File photo: Drought-affected farmer in Andhra Pradesh

New Delhi: The Comptroller and Auditor General's (CAG) final report on the farm loan waiver scheme has been tabled in Parliament.

Announced by the UPA-I government in 2008, the scheme had written off debt of almost 4 crore farmers totalling to about Rs 52,000 crore.

Highlights of the CAG report:

  • Overall, the Performance Audit revealed that out of 90,576 cases audited, the CAG found lapses and errors in 20,216 which raised serious concerns about the implementation of the scheme.
  • Of the 9, 334 accounts examined across 9 states 1257 accounts (13.46 per cent) not eligible for benefits
  • Of the 80,299 accounts granted debt waiver or debt relief about 8.5 per cent were not eligible -about 20.5 crores were given to ineligible persons
  • There was tampering found in 2824 cases with a total claim amount of Rs 8.64 crore
  • 42 lending institutions didn't prepare a proper list of beneficiaries

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