CENTRAL VIGILANCE COMMITTEE
ON
PUBLIC DISTRIBUTION SYSTEM
REPORT
ON
THE STATE OF HARYANA
Justice Wadhwa Committee
on
Public Distribution System
STATE OF HARYANA
INDEX
Chapters
A
B
Topics
Preface
Broad Overview
Page no.
1-9
i- xiv
1
Introduction
1-2
2
Legal Regime
3-17
3
Distribution of Foodgrain
18-31
4
Mode of Appointment of Dealers
32-39
5
Viability
40-48
6
Identification of BPL Beneficiaries
49-54
7
Computerisation
55-59
8
Enforcement, Vigilance and
60-64
Complaint Mechanism
9
Distribution of wheat flour/atta to
65-70
PDS beneficiaries
10
Recommendations
71-80
11
Appendix
81-83
PREFACE
1.
In Writ Petition(C) No.196/2001 – People’s Union for Civil Liberties
V/S Union of India and Ors., Hon’ble Supreme Court of India by Order
dated the 12.7.2006 constituted a Committee to be headed by me to look
into maladies affecting the proper functioning of the Public Distribution
System (PDS) and to suggest remedial measures. The operative portion
of the order reads as under:
“After having heard learned counsel for the parties, we find
that there is practically no monitoring over the sums allotted
for the Public Distribution System (in short PDS) by the
Central Government, and its utilization. The amount involved
we are told is in the neighborhood of Rupees Thirty
Thousand Crores annually. Certain suggestions have been
given by Mr. Colin Gonsalves, learned senior counsel as to
the modalities to be adopted in such cases. At the present
stage we feel it would be necessary to constitute a Central
Vigilance Committee headed by a retired Judge of the Court
to be assisted by Dr. N.C. Saxena, the Commissioner earlier
appointed by this Court. We requested Mr. Justice D.P.
Wadhwa to head the Committee.
The Committee shall look into the maladies which are
affecting the proper functioning of the system and also
suggest remedial measures.
For this purpose the
Committee shall amongst other things, focus on:a)
The mode of appointment of the dealers,
b)
The ideal commission or the rates payable to the
dealers, and
c)
Modalities as to how the Committees already in place,
can function better,
d)
Modes as to how there can be transparency in
allotment of the food stocks to be sold at the shops.
While dealing with the question of the mode of appointment,
the Committee shall also suggest as to a transparent mode
in the selection of the dealers. The Committee shall also
indicate as to how more effective action can be taken on the
report of the Vigilance Committee already appointed. It goes
without saying that the same shall be in addition to the legal
remedies available to any citizen in setting law into motion.
We request the Committee to give its report within period of
four months so that further instructions/directions can be
given.
The Committee would invite suggestions from general
public, organizations and would consider the suggestions, if
any received in the proper perspective. “
2.
Hon’ble Court’s direction was initially given for the Government of Delhi to
be followed on an all India basis.
3.
Committee submitted report on Delhi on 21.8.2007.
4.
By order dated 10.01.2008, Hon’ble Court, while accepting the report,
directed the Committee to undertake a similar exercise in terms of earlier
order for the entire country.
5.
Scope of the task assigned to the Committee thus having been enlarged,
the Committee projected to the Department of Food & Public Distribution,
additional requirements of staff, space and delegation of financial powers
for its smooth functioning. The Department dilly dallied and did not meet
the requirements. The Committee had to approach the Hon’ble Court again
and again. It was only after a peremptory Order dated 25.8.2008 was
passed by the Hon’ble Court that the Department started taking steps for
creating necessary infrastructure.
It was only thereafter that the
Committee could start functioning in right earnest.
The Hon’ble Court
extended the time for submitting the report till April 2009.
6.
The Committee submitted its report for the States of Uttarakhand,
Jharkhand, Orissa and Karnataka. Thereafter, the Hon’ble Court has been
pleased to extend the time further till December 2009. The Committee has
since submitted the report on the State of Andhra Pradesh, Bihar, Gujarat
and Rajasthan. The Hon’ble Court has further extended the tenure of the
Committee till 30.6.2010The Committee is presently submitting its report
on the State of Haryana.
7.
The Committee has already submitted a separate comprehensive report
on Computerization of PDS. Some States have shown interest towards
computerization
of PDS.
It is the mandate of the Public Distribution
System (Control) Order 2001 that
“State Governments shall ensure
monitoring of the functioning of the Public Distribution System at the fair
price shop level through the computer network of the NIC installed in the
District NIC Centres.
For this purpose computerized codes shall be
issued to each FPS in the district.” Nothing appears to have been done
towards this.
8.
PDS is undoubtedly the largest food distribution network of the kind in the
world. While procurement, storage in FCI godowns and allocation of food
grain to the states is in the hands of the Central Government, distribution
is done through the Fair Price Shops licensed by the State after identifying
BPL and AAY population as per the estimation fixed by the Planning
Commission.
9.
No one has doubted the utility of PDS being the need for supply of food
grains to the poor of the country at affordable rates. Procurement and
distribution of food grains is a huge and gigantic task but the whole system
is built on corruption. There are more leakages and maladministration and
benefits to the poor are low. Inefficiency and corruption has made PDS
corrupt at several levels (during the course of the visit of the Committee to
various places it was found that an equal and perhaps more corruption is
present in the distribution of kerosene oil). The system lacks transparency,
accountability, monitoring and enforcement. Survey is not being
conducted regularly and properly, with the result that people Above
Poverty Line (APL) have been issued Below Poverty Line (BPL) cards and
those eligible for BPL cards have been ignored.
10.
There is also a menace of bogus cards. Immediate measures are required
to reduce diversion of food grains. Delivery systems under the PDS have
to be improved so that the actual beneficiary gets its due entitlement at
fixed price, fixed quantity, fixed time and of wholesome quality. Innovative
methods are required to improve the system. The whole system has to be
totally revamped and modern technology appears to be the only answer.
Rather it is a matter of deep regret that in a surplus State of wheat like
Haryana there is large scale of diversion of PDS food grains meant for the
poor.
11.
Haryana and Union Territory of Chandigarh are in the process of
introducing, on a pilot basis, a smart card – data base system to deliver
food items under the PDS. Project is to be financed by the Central
Government. Through smart card, Central Government aims to increase
transparency and remove corruption from the much maligned PDS. It is
stated that in Haryana about 53 lakh people will be issued the smart card.
Central Government have recently
constituted a Unique Identification
Authority of India (UIDAI). The mandate of UIDAI is to issue unique ID
number to every resident
of the country.
It is stated that if PDS
authorities, in their domain make UID number of the ration card holders
and their family members as mandatory, they can clear up their data base
of bogus ration cards.
UIDAI would re commend that all State
Governments should start working and actively participate with the UIDAI
so as to clean up their data bases and improve their delivery system.
12.
In answer to a question that about 1.5. crores bogus ration card holders
were milking the PDS and could UID help such situations, Mr. Nandan
Nilekani, Chairman, UIDAI, replied “UID by itself will not solve the issue.
The application of UID in a given context will solve it. If a state decides to
have UID in all its ration cards, then somebody who has a ration card with
the UID cannot come again on another ration card with another UID. So
UID will ensure there are no duplicates. We are providing a capability to
agencies to re-engineer their public service deliveries but the decision to
re-engineer has to be theirs.”
13.
There is a complete mess in the state in the functioning of PDS and the
whole system is mired with corruption. After the Release Order is issued
by District Supply Officer to CONFED to lift food grain from FCI or other
agencies, there is no system of checking if the food grain reaches the FPS
and it is allotted to the beneficiaries in right quality, quantity and in time.
There is no check if the FPS has issued all the PDS food grain allocated
to it and without their being any check Release Order for the next month
is issued as a matter of course.
14.
CONFED is misfit for handling distribution of PDS food grain. It has no
trucks of its own. Tender process for appointing transporters is faulty.
Even the tenderers have no trucks of their own and they have to hire
private trucks. These transporters quote rates which are less than the
market rates. To illustrate on 6th March 2009 tender was issued and 6
applications were received.
The transporter names Hamida was
appointed in District Mewat and his rates for transportation of grain were:
Within District – 6.90 per quintal
Out of district – 11.50 per quintal.
The rates of transportation in the previous year were Rs.13 per quintal for
within
district and out of district
20.50 per quintal.
It is pertinent to
mention that the rates for the previous year was double the rate of the
current year.
15.
No doubt that FPS is not a profitable proposition. But it is also apparent
that the FPS owners are not interested in selling other grocery items from
the shop. No amount of increase in commission even by 100%, to an FPS
owner will make his shop viable for him to earn sufficient income. An FPS
owner can certainly add to his income by selling grocery items from his
shop but, it would appear, greed overtakes to make a quick buck from the
black-market and to share his ill gotten income with corrupt officials,
politicians and transporters. There is no prohibition from the State for the
FPS owner to sell other non-PDS items from his shop.
Diversion is
lucrative business considering the vast difference between the PDS foodgrain price and the market price.
16. Committee has suggested that in order to combat corruption and
strengthening PDS there has to be a zero tolerance approach. Everything
appears to be fine on paper but its implementation is faulty.
17.
During its visit to the State of Haryana, Committee visited State capital
Chandigarh, eight districts – Ambala, Kurukshetra, Rohtak, Faridabad,
Mewat, Palwal, Bhiwani and Hissar. Apart from meeting officials of the
State, FCI, State agencies, the Committee met a cross section of people.
These included NGOs, FPS owners, transporters and beneficiaries. The
Committee also inspected FPSs, wholesale godowns, godowns of State
agencies and FCI. Committee also visited offices of the Department of
Food & Civil Supplies in some of the districts. The Committee got full
cooperation from the officers of the State Government, State agencies
involved in the procurement and distribution, CONFED (the authorized
wholesaler in the state) and FCI.
18.
Committee
records
its
appreciation
of
the
assistance
rendered.
Committee met various officials of the State Government. The Committee
had public meetings at Kurukshetra, Rohtak, Mewat and Hissar.
The
Committee also had informal meetings with various stake holders at
Ambala, Faridabad, Palwal and Bhiwani. Due publicity had been given of
the visit of the Committee.
Committee wishes to record its appreciation
of the help and assistance rendered by Mr. A.R. Godara, Addl. Director,
Department Food & Civil Supplies, Government of Haryana to the
functioning of the Committee. Mr. Godara has however, retired before
the Committee could finalise its report.
19.
Participants in the meetings with the officers at various places are as
under:Chandigarh –Mr. Dharamvir, Chief Secretary, Haryana; Mr. L.S.M. Salins,
Principal Secretary (Food & Supplies Department); Mr. Avtar Singh,
Commissioner, Food & Civil Supplies & CMD, CONFED; Mr. A.R. Godara,
Addl. Director Food & Sup0p-lies and Mr. Arun Gupta, General Manager,
Food Corporation of India.
Ambala - Mr. Samir Pal Sarow, Dy. Commissioner, Mr. Y. Puran Kumar,
S.P.; Mr. G.P. Sikri, DFSC; Mr. Surinder Arora, AFSO; Mr. Brham Pal
Rana, Chairman, Zial Parishad; Karnail Singh, Distt. Manager, CONFED;
Mr. Vinod Kumar, DM(B), CONFED, Chandigarh and Mr. Sandip Singal,
D.M, FCI, Karnal.
Kurukshetra – Mr. Narinder Singh, Addl. Deputy Commissioner; Mr, A.R.
Godara, ADFS; Mr. Ashok Bansal, SDM Thanesar;
Ms. Manjula
Dahiya,DFSC; Mr. Dhan Singh, D.M.,CONFED; Mr. B. Devanand, D.M.,
FCI; Mr. Vinod Kumar, GM(B), CONFED, Chandigarh and Mr. Prem
Singh,BFSO,Ambala City.
Rohtak – Mr. P.C. Meena, Dy. Commissioner; Mr. A.S. Mann, A.D.C.; Mr.
A.R. Godara, A.D.F.S.,CMD; Mr. Vinod Kumar, G.M. CONFED,
Chandigarh; Mr. Parmodh Sharma, D.F.S.C.; Mr. D.K. Singla,D.M.
CONFED; Mr. K.C. Garg, D.M.,FCI; Mr. Harbans Lal, Manager
Procurement,FCI and Mr. Mahavir Sharma, Asstt. Registrar,G.M Coop.
Store.
Faridabad – Mr. Barjinder Singh, Dy.
Commissioner; Mr. Pushpender
Singh Chauhan, SDM; Mr. A.R. Godara, Addl. DFC, Chandigarh; Mr.
Vinod Kumar, GM, CONFED; Mr. Ram Avtar, DFSC; Mr. Anil Malik, DM,
CONFED, Faridabad and Mr. K.K. Barua, Area Manager, FCI.
Mewat (Nuh) – Mr. Mehtab Singh, Dy. Commissioner; Mr. S.S. Dalal,
Addl. Dy. Commissioner; Mr. Atul Dwivedi, SDM; Mr. Inder Pal B ishnoi,
SDM; Mr. K.K. Goyal, DFSC and Mr. Ashwani K. Gaur, Dy. Director.
Palwal – Mr. M.K. Mahajan, Dy. Commissioner; Mr. Ram Niwas, DSFC;
Mr. Shankar Lal Gupta, AFSO; Mr. Amrik Singh, DSP and Mr. R.D. Mehra,
Distt. Manager, CONFED.
Bhiwani – Mr. Vikas Gupta, Dy. Commissioner; Mr. R.C. Bidhan, ADC; Mr.
Azad Singh, DFSC; Mr. A.K. Goel, Dy.DF&SS(HR),Ch.D; Mr. Kamal Singh
DPRO; Mr. K.K. Varsmnei, DPO & ADC; Mr. Dharam Pal Singh,
Manager(D),FCI; Mr. L.R. Jain, Area Manager,FCI, Hissar; Mr. Subhash
Singh , Distt. Manager, HAFED and Mr. T.K. Mittal, D.M., CONFED.
Hissar – Mr. O.P. Sheoran, Dy. Commissioner; Mr. Amardeep Jain, SDM;
Mr. D.P. Singh, City Magistrate; Mr. Pankaj Nain, ASP; Mr. Dharmvir
Goyat, Distt. Food & Supply Controller; Mr. D.C. Sharma; DFSO; Mr.
Subhas Sihed, Asstt. Food & Supply Officer; Mr. S.S. Bishn oi, Distt.
Manager, CONFED; Mr. B.S. Bhati, Area Manager, FCI; Mr. Jaivir Singh,
Asstt. Controller Legal Meteorology and Mr. Jaipal Singh, Inspector, Legal,
Meteorology.
20.
Members of the Committee who visited the State are Ms. Meenakshi
Chauhan, Ms. Naomi Chandra and Mr. Shohit Chaudhry (being members
of Legal Team), Mr. K.K. Mittal, Director and Mr. J.K. Bhutani, Section
Officer. Mr. S.C. Rawal, a former Registrar of Delhi High Court and
appointed as Secretary by the Chairman, has been performing functions
of the Secretary of the Committee.
Dr. N.C. Saxena, however, could not
offer any assistance to the Committee perhaps due to his other
engagements.
21.
The Committee is submitting its report which has been divided into various
Chapters like distribution of food grain, appointment of FPS dealers,
viability, identification of BPL, wheat flour (atta), coupon system, diversion
of foodgrains, vigilance, enforcement
& complaint mechanism and
computerization . Overview has been given of the PDS in the State and
recommendations made. An attempt has been made to make each
Chapter self-contained and there is possibly a repetition at various places.
Delhi
(Justice D.P Wadhwa)
Chairman
Central Vigilance Committee
on Public Distribution System
Broad Overview
1. There are 21 districts in the State of Haryana. There are 9570 (2751
Urban and 6819 Rural) Fair Price Shops (FPS) catering to 54,32,815 ration
cards. The population of the State of Haryana as per 2007 census was
2.39 Crores and the projected population as on 31.10.2008 was 2.44
Crores. As per the Planning Commission there are 7.29 lakh families living
below the poverty line in the State. However, the survey revealed that
there are about 11.97 lakh (BPL + AAY) families below poverty line. The
State of Haryana is a wheat surplus State.
2. The Central Vigilance Committee visited the State of Haryana from 5th 12th, August, 2009 and 29th November to 1st December, 2009.
The
Committee during the visit met the officials of the State Government in
Chandigarh and discussed various issues concerning PDS in the State.
The Committee also studied of the functioning of the Public Distribution
System in the following districts of the State- Ambala, Kurukshetra,
Rohtak, Faridabad, Mewat, Palwal, Bhiwani and Hissar. The Committee
interacted with the State Government officials, District officials, Officials of
FCI, CONFED, Consumers, FPS dealers, NGOs, Self Help Groups,
Consumer Organizations and Media etc., to assess the working of the PDS
in the State. The Committee found that Public Distribution System in the
State has failed miserably. There is a large scale diversion from wholesale
distribution to retail distribution.
3. It seems that the Public Distribution System in the State needs to be
analysed by the senior level functionaries of the department and drastic
changes need to be done to make the PDS in this food surplus State
workable. During the visit the Committee examined the following aspects
of the PDS regarding the Implementation of the Government Rules and
Regulations and Control Order and the compliance of the directions of the
Hon’ble Supreme Court concerning PDS :i. Distribution of Food grains.
ii. Mode of appointment of FPS dealers.
iii. Viability of FPSs.
iv. Functioning of Vigilance Committees.
v. Enforcement and complaint mechanism.
vi. Identification of Beneficiaries.
vii. Issuing of ration cards.
viii. Role of officials of the Department at different levels concerning
PDS.
ix. Computerisation.
4. During the visit of the Committee public meetings were organized at
different places to know the grievances of stake holders concerning PDS.
The views expressed by the people during these public meetings are
mentioned at the end of the report as Appendix.
5. On the basis of the observations and findings the Committee has made
some recommendations in the report which are enumerated in separate
chapters. The Committee has analyzed various aspects affecting PDS in
the State in different Chapters which are as under:6 Distribution and Transportation of the Food grains :-
6.1
The State of Haryana is a wheat surplus State. The Central Government
under its decentralized procurement policy has allowed certain agencies of
the State Government to procure wheat on its behalf. The FCI is the
agency of the Central Government for procurement of food grain. In
Haryana the State Food and Supplies department, HAFED, FCI Haryana
Region, Haryana Warehousing Corporation, CONFED and Haryana Agro
Industries Corporation have been allowed to do procurement on behalf of
the FCI in the ratio of 20%, 33%, 20%, 9%, 9%, and 9% respectively. All
these agencies procure wheat from the farmers who come to the ‘Mandis’
set up by Haryana Agricultural Marketing Board and store it in their
godowns.
6.2
The State agency CONFED is responsible to lift the foodgrain from the
procuring agencies and to deliver the same at the doorstep of the Fair
Price shops. The CONFED does not have its own trucks and it appoints
transporters through Tender process. The transporters appointed through
tender process usually do not have sufficient trucks and usually they have
one or two trucks of their own and rest of the trucks is hired by them.
The Committee observed that the transporters quote less than the actual
rates to get the Contract. This clearly gives inference that they recoup the
losses by diverting the foodgrain.
6.3
For Instance in Mewat District, On 6th March 09 tender was issued and 6
applications were received. The transporter named Hamida was appointed
and
his rates for transportation of grain were
Within District – 6.90 per quintal
Out of District- 11.50 per quintal
6.4
The rates of transportation in the previous year were Rs. 13 per quintal
for within district and out of district 20.50 per quintal. It is pertinent to
mention that the rates for the previous year was double the rates of the
current year. The transporter himself quoted such low prices and later in
August he refused to Continue as transporter even at the cost of forfeiting
his security amount.
6.5
Committee on perusal of transporters file observed that the transporters
usually have one or two vehicles. Officer of CONFED informed the
Committee that as the number of vehicles are not sufficient the
transporter hires trucks for supply of foodgrain to FPS. As the private
trucks are hired by the Transporters to carry and transport foodgrain the
question arise that why the private truck owners transports the foodgrain
in lesser rates than the market rates. These facts give direct inference
about the Diversion of the foodgrains during transportation. Similar facts
were observed while perusing transportation files pertaining to other
districts.
6.6
Further, it is to be noted that no officer of CONFED accompanies the truck
while transportation of the foodgrain from procurement agency to the fair
price shops. There is no monitoring by the CONFED officers on the
transportation of foodgrains. Once the foodgrain is lifted and loaded in the
truck from the godowns of the procuring agencies it is totally in the hands
of the transporters. The transporter and whether he delivers the full
quantity at fair price shop or not.
6.7
The Department officials are duty bound to check whether the foodgrain
have reached the fair price shop or not. The department has to certify
that the 100 % foodgrain has been delivered by the transporter and give
the same to the CONFED before the bills pertaining to same is cleared.
However, the Committee observed that the department officials are not
checking the delivery of the foodgrain by CONFED appointed transporters
at the fair price shops. This clearly indicates the connivance of CONFED
officers, department officials and the transporters.
Strict Penal actions
should be taken against officers and transporters if found guilty of
diversion of foodgrain.
6.8
The Committee observed that the shops are not opened for distribution of
food grains and other items through out the month. It was also observed
that the time schedule adopted by the Department for distribution is not
proper. The time schedule for deposit of the money by the FPS dealers,
issuing of release orders, lifting from the State agencies by CONFED and
distribution by CONFED to the FPS dealers has been fixed in such a way
that the actual duration for distribution for the FPS dealer is only 10-15
days. This is in violation of the direction of Hon’ble Supreme Court.
6.9
Presently the APL beneficiaries entitled to 35 kg foodgrain however, it was
found that they are not getting any foodgrain. The BPL beneficiaries in
some districts are getting 28 kg and in some districts they are getting 31
or 32 kg foodgrain. However, AAY beneficiaries are getting 35 Kg
foodgrain.
6.10
In the State of Haryana there large number of labours from different
States keep migrating in search of work. The Committee feels that there
should be some provision of food security for the migrant labour who
come in search of job or work from their native places temporarily. They
could be registered as temporary residents and provision should be made
for providing PDS food grains etc. to them also.
6.11
The Committee during the visit to the State came across many cases of
damaged/ rotten foodgrain supplied to the consumers under PDS. It was
informed by the District Officials that generally the quality is proper
however at some places the grain is damaged because of the nonavailability of storage space with the procurement agencies in Haryana.
They have to store the foodgrains sometimes in the open. The Committee
feels that State Government must take immediate steps for creating
storage space so that the foodgrains is not damaged and the proper
quality is available to the consumer though PDS.
7
Quality Control / Joint Sampling of food grain The Committee during the visit observed that joint sampling of foodgrain
is not done by the agencies at the time of lifting of the food grains. No
sample is provided to the FPS dealers. This is again violation of the Public
Distribution System (Control) Order, 2001 which provides for the
mandatory display of samples by the FPS dealer in his shop. The samples
are essential to ensure that the same quality is being distributed by the
FPS dealer which has been delivered by the wholesale agents.
Though
the clause 9(v) and 10 (1) imposes duty on FPS dealers and CONFED to
display samples of foodgrains, same was found to be not followed all the
districts visited by the Committee. It was observed that the provisions of
the Control Order are not implemented properly and the officers
responsible for monitoring the same shall be made accountable for such
lapses.
8
Mode of Appointment of Dealers :-
8.1
As per Clause 2(k) of the Haryana Public Distribution System ( licencing
and control Order, 2009 the District Food and Supplies Controller of the
concerned district. Clause 2 (i) of the Haryana Public Distribution System
(licencing and control Order, 2009 provides that the Lincence of a fair.
The license of a fair price shop shall be granted for a minimum number of
600 ration cards not exceeding 1200 ration cards, but in rural areas a
village shall be treated as one unit for this purpose and as such the
license for the fair price shop may be issued even for less than 600 ration
cards of the village.
8.2
The Haryana PDS control Order 2009 of the State provides that Licensing
authority shall call for applications through local publicity and munadi in
the local area of the Fair Price Shop. A committee comprising District Food
and Supplies Controller, Inspector Food and Supplies concerned and the
Sarpanch of village in rural area and District Food and Supplies Controller,
Inspector Food and Supplies concerned and Municipal Councilor in urban
area shall recommend to the licensing authority the name of the eligible
applicant as per these priorities/ preference. However, it was observed by
the Committee that the procedure of appointment of FPS dealer is vice –
versa. The persons having political links first get recommendations from
the Sarpanch or Municipal councilor and apply for the licence. The
department on obtaining the applications publicize the vacancy through
munadi which is mere formality. Such persons are given time to show list
of 600 families and on submission of the list he is given lincence. It is only
on the basis of the resolution of Panchayat, the FPS dealership is given. It
was also seen that in practice recommendations of local politicians, MLAs,
Municipal Councilors, Sarpanch and other influential people are the only
qualification for getting FPS licences. Other conditions as prescribed in
the Haryana State Control Order of 2002 and latest order of 2009 are not
followed while granting the FPS dealership. No vacancy is advertised.
8.3
The provisions of the Haryana Control Order 2009 recognizes and gives
legitimacy to political interference in appointment of dealers by making
the Sarpanch and the Municipal Councilor as members of the rural/urban
committees appointed for recommending the applicants for allotment of
licences for Fair Price Shops. The Committee is of the view that political
involvement in the grant of licences has to be completely eliminated.
8.4
Clause 2(h) Provides the eligibility condition for the applicant. Provides
that a person having 10+2 or its equivalent qualification, not less than
21 years of age and is a resident of the locality for which the fair price
shop license in applied for. However, in case of a Group like Self Help
Group and Sakshar Mahila Samooh, the condition of 10+2 pass and age
will not apply;
The
Order provides for preference to unemployed
graduates while granting FPS licence. The Committee is of the view that
as the FPS is not a viable unit giving preference to unemployed graduates
serves no purpose. As the income of FPS dealer is not much they indulge
in malpractices to make profits.
9
Viability of Fair Price Shops :-
9.1
During the visit to the State the Committee visited number of shops in
various Districts.
The Committee feels that stand alone FPS is not
profitable. There was a general demand to increase the commission of
the FPS, at some places there was also a demand from FPS dealers that a
fixed salary may be given to them for running the FPS.
9.2
The Committee is of the view that since any amount of increase in
commission would not make an FPS viable, it is, therefore, necessary that
FPS dealers should sell grocery items along with PDS items. The condition
should be that in the Grocery / Kirana shop, the sale should only be non
PDS commodities. The Committee feels that the condition should be put
in the licence that FPS owner must have a running Kirana / Grocery shop.
In case of default or non compliance with the condition, the FPS licence
should be revoked.
9.3
Efficient retailing would require pre-conditions such as experience and
ability to undertake certain investment and sustain an adequate return.
FPS licences should be granted to people/ groups who have adequate
liquidity of fund. Integrity and rapport of person in the local area are other
aspects to be considered.
Pattern of ownership of FPS can have
important bearing on their viability. Self Help Groups and Cooperatives
can be given priority for granting licences to rationalize the cost structure
of FPS.
9.4
The
Order provides for preference to unemployed graduates while
granting FPS licence. The Committee is of the view that as the FPS is not
a viable unit giving preference to unemployed graduates serves no
purpose. It is a well documented fact that the FPS owner is in business for
the purpose of diversion or for political influence or other influence that he
can wield by being an FPS retailer. There is massive corruption woven
around it where the participants are the shop keeper, officials of the
Department / Corporation, transporters and last but not the least the
politicians. The Committee is of the view that the reservation for various
categories provided in the Haryana Public Distribution (Licensing and
Control) Order, 2009 appears rather unnecessary. FPS licences should be
allotted to persons of the locality who are already running kirana/ grocery
shop or have the capability to do so.
Though there is a clamour for
allotment for FPS, the stand alone FPS does not rehabilitate or support
sustenance of any category or gender. It rather breeds corruption.
10
Enforcement, Vigilance and Complaint Mechanism :-
10.1
There is no separate system of implementation of enforcement and
vigilance in the PDS as currently there is no separate cell for the purposes
of monitoring PDS. It is recommended that a separate division of
enforcement and vigilance of PDS be started in the State in order to deal
with the specific problems of PDS.
10.2
The rate, at which action is taken against the errant FPS dealers and
errant officials, is abysmally low. Thus there is no effective deterrent to
stop malpractice in PDS. It is necessary that there should be special
squads for enforcement of PDS. The squads should be responsible for
conducting
raids,
surprise
checks,
conducting
prosecutions,
recommending Departmental action against the officials and taking action
against the defaulting officer under the Haryana PDS Control Order 2009,
Essential Commodities Act 1955, Prevention of Corruption Act, 1988 and
Indian Penal Code. The Haryana PDS control Order 2009 provides that if
any Licencee contravenes any of the terms or conditions of the license or
of any control order issued under the Act the licence shall be suspended
immediately without giving any notice. The licensing authority shall take
strict action which included forfeiture of the security deposit in full and
suspension of licence; cancellation of the license and forfeiture of the
security deposit in full; or registration of criminal case as per provisions of
the Act. However, it was observed that no action is taken by the officials
against errant FPS dealers. PDS operation should be based on the
principle of zero tolerance. Any infraction of the Rules and Regulations or
Instructions should invite strict action not only against the FPS owner but
also the concerned officials.
10.3
The Committee found that most of the FPS dealers do not have proper
weights and mostly the certificates are obtained without actually checking
the weighing machines. The officials of the Legal Metrology department
should also be made accountable for any act of omission or commission in
fulfilling their duties.
10.4
The State should set up Vigilance Committees at the State and District
levels also to keep an eye on the Public Distribution System. Date, Place
and time for the meeting of the committees should be fixed in advance.
Vigilance Committees at various levels be strengthened by including the
NGOs, Self Help Group, Consumer Organisations and the educated youth
in the Vigilance Committee at various levels. The meetings of the Vigilance
Committees must be convened regularly.
10.5
The Village/ FPS level committee should also meet regularly every month.
Minutes of the meetings of the vigilance committees should be recorded.
Follow up action should be reviewed in the next meeting.
10.6
There is no effective and systematic complaint redressal mechanism for
the common people. In the absence of a customized complaint redressal
system, most of the grievances of the common man go unheard and
unattended, encouraging the corrupt practices by the dealers and the
officials. It is recommended that an effective complaint redressal system
for PDS related grievances be initiated wherein the beneficiaries may
register and also follow up their complaints.
10.7
State should set up a 24 hours toll free helpline where a beneficiary can
lodge his complaint. The toll free number should be printed or stamped on
the Ration Card.
There should be a system of the follow up of the
complaint. A post of Ombudsman/Regulator should be created for PDS.
The Ombudsman/Regulator should look into
complaints including the
complaints received through the helpline and take appropriate action
against the defaulting licencees and the officials concerned.
11
Indentification of Beneficiaries
11.1
During the visit to the State there was a general complaint that the
deserving people are not having the ration cards and those who are well
to do and prosperous are included the BPL category.
There are large
scale exclusion and inclusion errors in the survey done for identification of
BPL families. Committee feels that to make the PDS purposeful it is most
essential that survey should be done by an independent agency which can
work without any political interference and the survey is conducted
without any fear and favour. The Committee feels that Registrar General
of India may be entrusted this work of identification since they have
necessary experience in such work and also be perceived as a neutral
agency.
11.2
The Committee also feels that the State Government should have
periodical checking of ration cards and there should be continuous process
to weed out bogus cards as provided in para 2 of the Annexure to the
Public Distribution System (Control) Order, 2001. It is also suggested that
a list of the BPL families should be displayed at the FPS.
11.3
The committee was informed that the correct figures have not been
collected during the
2004 BPL survey due to which there was
discontentment amongst the public. Hence the survey was cancelled and
a
fresh survey was ordered. The fresh survey was entrusted to Ex-
servicemen. This survey was completed in 2007.
11.4
As per the Planning Commission there are 7.29 lakh families living below
the poverty line in the State. However, the survey revealed that there are
about 11.97 lakh (BPL + AAY) families below poverty line.
Since the
number of BPL families found in the survey was more than the estimates
of the Planning Commission, the State decided in year 2008 to treat 3.83
lakh families as “State BPL”.
The BPL cards issued within the limits
prescribed by the Planning Commission are named as “ Central BPL”. By
an order dated 04.09.2008 it was decided that the State will collect the
APL and BPL allocation and distribute it amongst the Central BPL and
State BPL equally at 35Kg.per month per ration card. The difference in
cost between the APL wheat and State BPL wheat will be borne by the
State. The quota of the BPL has since been reduced to 33 Kg. per family
per month. BPL card holders are given wheat @ Rs.4.84 per Kg. AAY
families are being distributed 35Kg. wheat per month @ Rs.2.10 per Kg.
12
Use of ration card as an identity:The Committee during the visit to the State observed that ration card is
not only used as identity card but is required for availing benefits under
various schemes of the Government. This is in violation of the provisions
of Public Distribution System (Control) Order, 2001 issued by the Central
Government. The Committee feels that ration card should be de-linked
from all other schemes and steps should be taken to ensure that it is not
used as an identity card.
13
Awareness among Beneficiaries
13.1
The Committee during the visit to the State found that there is lack of
awareness in the people about their rights and entitlements.
Committee
The
is of the view that for the proper functioning of the PDS
awareness is very important.
13.2
To create awareness among the people it must be ensured by the District
administration that a press release is issued at the beginning of the month
indicating the quantity issued to be FPSs, entitlement of various categories
of the beneficiaries, rates of the commodities to be charged by the FPS
dealer so that people can know their rights and entitlements. To further
enlighten the peoples of their rights and entitlements, pamphlets, posters
must be published and widely circulated.
Local TV channels may also be
requested to show all these above mentioned details on their scrolls to
create awareness among the people.
13.3
A Public hearing for PDS on the lines of the Lok Adalat ( Electricity/
telephone/ water) must be convened at a designated place, time and day
every 2/3 months where general public can seek to resolve outstanding
issues pertaining to the PDS. These may include those relating to their
category / entitlements, non-issuance of the cards, bifurcation of cards,
wrong inclusion of APL, complaints regarding under-weighment etc. PDS
Lok Adalat so constituted should be presided over by District Judge or a
Judicial Officer nominated by him not less than the rank of Additional
Judge and should include the Collector of the District and the District Food
and Supply Controller. A system of accountability must be put in place to
ensure the implementation of decisions taken during these hearings.
14
Computerisation:The
Committee
during
the
visit
to
the
computerization process has been started.
State
observed
that
the
It was informed that the first
phase of computerization has been completed in most of the districts and the
second phase is being implemented in 7 districts. The Committee feels that
end to end computerization is essential for improving the Public Distribution
System.
The Committee has already submitted a detailed report on
computerization to Hon’ble Supreme Court for improving the functioning of
PDS. State Government should take up the computerization of PDS on the
lines as suggested by the Committee in its report.
**************
CHAPTER 1
INTRODUCTION
1. Haryana lies in northern India and is bordered by the Indian states of
Delhi, Rajasthan, Uttarakhand, Himachal Pradesh, Uttar Pradesh and
Punjab. It has a population of 2,10,83,000 and an area of 44,212 sq km.
2. Haryana became a new state of India on 1st November, 1966 with
Chandigarh as its capital, and since then it has made progress to become
one of the most prosperous states of India. Haryana's geographical
proximity to the national capital New Delhi and, a well developed telecom
and transport infrastructure, are its major strengths in the economic field.
3. The population of the State of Haryana as per 2007 census was 2.39
Crores and the projected population as on 31.10.2008 was 2.44 Crores.
There are 21 districts in the State with 6955 villages out of which 6764
villages are inhabited. There are 9570 (2751 Urban and 6819 Rural) Fair
Price Shops (FPS) catering to 54,32,815 ration cards.
4. As per the Planning Commission there are 7.29 lakh families living below
the poverty line in the State. However, the survey revealed that there are
about 11.97 lakh (BPL + AAY) families below poverty line.
5. In order to study the Public Distribution System in the State of Haryana,
the Committee visited Chandigarh and held discussions with the Chief
Secretary, Principal Secretary Food and Supplies Department and other
Senior Officers of the Department. The Committee visited the office of the
Haryana State Federation of Consumers’ Co-operative wholesale Stores
Ltd., popularly known as CONFED which is the agency responsible for
door step delivery of the PDS food grains to the Fair Price Shops.
6. The Committee visited Chandigarh and the Districts of Ambala,
Kurukshetra, Rohtak, Faridabad, Mewat, Palwal, Bhiwani and Hissar.
Public meetings were held to get suggestions from the general public, Fair
Price Shop owners, Municipal Councilors, Surpanch, NGOs, Self Help
Groups, Consumer Organisations etc. Meetings were also held with District
Officials and field staff of the Food and Supplies Department.
7. The State of Haryana and the Union Territory of Chandigarh have been
selected for the pilot projects on computerisation of the Public Distribution
System. The Committee invited the team of officers from the State
responsible for the pilot project along with the representative of
Expedien_E-Solutions who gave a presentation of the proposed system.
The Committee obtained a copy of the Detailed Project Report (DPR) and
visited the PR Center at Ambala where the work on the computerisation
project is in progress.
CHAPTER 2
LEGAL REGIME
2.1
ESSENTIAL COMMODITIES ACT, 1955: The Essential Commodities
Act 1955 (Act) is an Act to provide, in the interest of general public, for
the control of the production, supply and distribution of, and
trade and
commerce, in certain commodities.
i.
Section 3 of the Act confers powers on the Central Government to control
production, supply, and distribution etc. of essential commodities. Central
Government has issued an order called Public Distribution System
(Control) Order 2001 (Order), which was amended in 2004.
ii.
Stringent provisions exist in the Act and the Control Order, to deal with
any infringement of the provisions of the Act or the Order.
iii.
Section 7 provides for penalties. Any person contravening the Order is
liable to be sentenced to imprisonment, which may extend upto 7 years
and shall also be liable to fine. Sentence of imprisonment cannot be less
than 3 months unless there are adequate and special reasons.
The
property in respect of which contravention of the Order has taken place, is
liable to be forfeited to the Government and so also any vehicle used in
carrying such commodity.
If a person commits offence a second time
then imprisonment cannot be less than 6 months subject to, adequate
and special reasons.
iv.
A person who attempts to contravene or abets any contravention of the
Control Order is similarly liable (Section 8).
v.
Section 9 provides for punishment upto 5 years or fine or both, if the
record is not maintained in terms of the Control Order or any statement or
information furnished, which is not true.
vi.
Section 10 deals with offences by Companies.
vii.
Section 10A has made any offence punishable under the Act cognizable.
viii.
Section 10C provides that Court may presume the existence of such
mental state where an offence under the Act requires culpable mental
state on the part of the accused.
“Culpable mental state” includes
intention, motive, knowledge or reason to believe a fact.
ix.
Under Section 11, a Court can take cognizance of an offence under the
Act not only on a complaint made by a public servant but also by any
person aggrieved or any recognized consumer organization.
x.
An offence for contravention of the Control Order is to be tried summarily
(Section 12A).
xi.
If an accused is sentenced to imprisonment for a period not exceeding
one month and of a fine not exceeding Rupees two thousand, no appeal
can be filed.
xii.
Section 14 provides that when a person is prosecuted for contravention of
any order which prohibits him from doing any act or being in possession
of a thing without lawful authority or without a permit, license or other
document, the burden of proving that he has such an authority, permit,
license or other document, shall be on him.
2.2
The Public Distribution System (Control) Order, 2001: The Public
Distribution System (Control) Order, 2001 (hereinafter referred to as the
‘PDS Order 2001’) has been issued by the Central Government in exercise
of powers conferred by Section 3 of the Essential Commodities Act, 1955
for maintaining supplies and securing availability and distribution of
essential commodities under the Public Distribution System. The said
Order has been amended in 2004.
2.3
Haryana Public Distribution System (Licensing and Control)
Order, 2002
The State of Haryana issued the Order dated 18.04.2002, regulating the
sale and distribution of essential commodities, known as the Haryana
Public Distribution System (Licensing and Control) Order, 2002 on. This
order (herein after referred to as the Haryana Control Order, 2002)
provided inter alia for the (i) Identification of families living below poverty
line by the Rural Development Department and Swarn Jayanti Sehri
Rozgar Yojna Departments in rural and Urban areas respectively, (ii) Issue
of ration cards to APL, BPL and AAY families (green yellow and pink)
respectively and periodical review and checking of ration cards, (iii)
Licensing for regulating the sale and distribution of essential commodities
and the responsibility and duties of the Fair Price Shop owner, (iv)
Monitoring the Public Distribution System including functioning of the Fair
Price Shops by the State Government, (v) Power of search and seizure,
(vi) Appeal and (vii) The licence fee payable by the Fair Price Shop owner
for grant of licence and its renewal.
2.4
Some amendments were made to the Haryana Control Order, 2002 by
Haryana Public Distribution System (Licensing and Control) Amendment
Order, 2003.
2.5
As per instructions dated 7.4.2005 joint samples ought to be taken at the
time of lifting the grain from the godown by a committee comprising of
the District Food and Supply Controller/ District Food and Supply Officer/
Assistant Food and Supply Officer, concerned District Manager/ Assistant
District Manager CONFED, Chief Analyst of the Food and Supply
Department and representative of the depot holder’s Association so as to
ensure that supply of good quality of wheat to the beneficiaries.
2.6
The Director and Special Secretary, Government of Haryana, Food and
Supplies Department issued instructions vide Order dated 21.09.2005, to
all the District Food and Supply Controllers for making the Public
Distribution System efficient. These instructions inter alia provided the
following :
(i)
That the provisions of Haryana Public Distribution System (Licensing
and Control) Order, 2002 be strictly enforced and if any depot holder is
found guilty action should be taken against him immediately.
(ii)
Local person should be given preference at the time of issue of a
licence.
(iii)
While giving the licence for a depot it should be ensured that the
applicant is educated so that he can maintain proper records of the
work relating to the depot.
(iv)
It should be ensured that the applicant for FPS depot has sufficient
space to store the food grain, Kerosene oil and sugar.
(v)
The licence for the depot should be given on the recommendation of
the Panchayat. In case such a recommendation is not there, the depot
may be allotted on the recommendation of the local MLA/MP.
(vi)
The depot holder should not be less than 18 years of age.
(vii)
It should be ensured that licence for a depot is not issued on less than
600 cards in the urban areas. In rural areas the licence for a depot
may be issued taking a village as a unit even if the number of cards is
less than 600. However no depot should have more than 1200 cards
attached to it so that the beneficiaries do not have to travel long
distance to get to the depot.
(viii)
The Fair Price Shops should remain open from 8.00 am to 12.00 noon
and 5.00 pm to 9.00 pm in summer and 9.00 am to 1.00 pm and 3.00
pm to 6.00 pm in winter.
(ix)
Detailed instructions on distribution and transportation of food grain
under the Targeted Public Distribution System have also been issued.
(x)
Directions were issued to the District Food & Supply Controllers to
ensure that the release orders are issued in time.
(xi)
In order to ensure supply of ration to the consumer in time every
depot holder shall deposit the cost of BPL and AAY grain as per his
entitlement
with
the
District
Manager
CONFED/
Co-operative
Consumer Depot from 25th to 30th for the distribution for next month.
In case the depot holder does not deposit the money as per his
entitlement action will be taken against him under the Haryana Public
Distribution System (Licensing and Control) Order, 2002.
(xii)
District manager CONFED/ Consumer Co-operative Stores will give
information to the District Food and Supply Controller by the 2 nd day of
each month about the depot holders who do not deposit the money by
the due date.
(xiii)
The District Manager CONFED/ Consumer Co-operative Stores will
ensure door step delivery of PDS food grain to the depot holder by the
10th of every month and will give a certificate to the District Food and
Supply Controller by the 15th that delivery has been made at the door
step of the FPS.
(xiv)
In villages the door step delivery of food grain should be made in the
presence of the village sarpanch and two panches and signatures of
the Sarpanch and the two panches be obtained and kept in the
concerned office of the CONFED.
(xv)
The District Manager CONFED will give information about the delivery
of food grain at the door step of the FPS to the District Food Supply
Controller in advance by giving a route chart. A copy of the same will
be sent to the Deputy Commissioner/ Sub Divisional Officer.
(xvi)
The District Food Supply Controller will give information in this regard
to the Deputy Commissioner/ Sub Divisional Officer by phone so that
strict vigil can be kept on the transportation of the food grain.
(xvii)
It is the duty of CONFED to ensure that after lifting the food grain
from the godown delivery at the depot is made on the same day.
(xviii) The employee/ representative of CONFED accompanying the vehicle
which goes to delivery the food grain will make an entry of the
quantity issued to the depot holder in the stock register of the depot
holder with his signatures. Besides this he will also make an entry of
the place from where the food grain was lifted and the number of the
vehicle in which the food grain was delivered.
(xix)
The District Food and Supply Controller and the District Manager
CONFED will review the lifting and distribution of food grain in
meetings twice a month and will ensure that there is no diversion of
food grain during transportation. Information about this will also be
given to the Deputy Commissioner/ Sub Divisional Officer.
(xx)
The contractor of CONFED will be paid the transportation charges by
the CONFED only after the District Food and Supply Controller certifies
that the food grain has reached the depot.
(xxi)
Participation of Panchayati Raj institutions has been ensured in
keeping a vigil on the distribution of ration items by the depot holder.
(xxii) The Vigilance Committees have been reconstituted which will have the
following members:RURAL AREAS
URBAN AREAS
1. Sarpanch
Municipal Councilor
2. Schedule Caste Panch
Ex- Municipal Councilor
(If the Sarpanch is from Woman representative
Schedule
3
caste
from other caste)
a panch nominated by the Sub Divisional
Officer
Village Patwari
If there is no Patwari in the village, village panchayat can nominate a
school teacher or an anganwari worker in his place.
(xxiii) The vigilance committee so constituted has to ensure distribution of
PDS items in its presence and the depot holder will get the allotment
for the next month only on production of a certificate from the
vigilance committee.
(xxiv) The participation of the Panchayati Raj institutions has been ensured
by involving the Gram Panchayats in issue of licence for the depot in
rural areas on the resolution of the Gram Panchayat; attestation of D-1
forms for issue of ration cards, addition or deletion of units in the
ration cards; proper distribution of the PDS commodities; Gram
Panchayat has to certify the receipt of PDS commodities at the depot
and has to verify the stock register for proper distribution; Gram
Panchayat will submit a report to the Panchayat Samiti once a month
about the working of the Public Distribution System. The Panchayat
Samiti will oversee the working of the Public Distribution System and
hear complaints; the Panchayat Samiti will submit a report to the Zila
Parishad once in three months about the working of the Public
Distribution System. The Zila Parishad will have a meeting with the
District Food and Supply Controller every month about the availability
of essential commodities;
(xxv) The Deputy Commissioner will review the lifting and distribution of the
PDS commodities every month in the meeting of the District
Grievances Committee and if there is any complaint it will be decided
at the spot.
2.6
There is a provision of maintaining a PDS Diary which keeps a record of
inspections being conducted by the Inspectors. All the officers are
required to send their PDS diary to the head office by 15th of every month.
Every Inspector/Sub-Inspector who have been assigned depots and all
Assistant Food Supply officer have to check the depots in his area from
15th to 25th of every month. At the time of checking the concerned officer
has to make entry in 25 ration cards about the checking done in that
month. A certificate has to be given in the PDS diary that no duplicate
entry of any ration card has been made in the sale register. A certificate
of the vigilance committee has to be attached with the PDS diary.
2.7
Haryana Public Distribution System (Licensing and Control)
Order, 2009
The State has issued the Haryana Public Distribution System (Licensing
and Control) Order, 2009 on 13.07.2009 superseding the Haryana Control
Order, 2002.
The new order inter alia provides for the grant of licence
to the dealers, licensing authorities, procedure to be followed for issue of
FPS licence, responsibilities and duties of FPS dealers, requirements and
forms of accounts to be maintained by FPS dealers. The procedure for
issuance of ration cards and use thereof has been provided in the new
order.
The Control Order also provides for the enforcement procedure in
the form of powers of entry, search and seizure. There is a provision of
appeal against the order of the licencing authority and requirement of
submission of returns by the licencee. The involvement of Panchayati Raj
Institutions and Muncipal Committees / Councils have been recognized in
the new Control Order, 2009 in grant of licence to the FPS dealers.
2.8
Appointment of Fair Price shop dealer
As per Clause 2(k) of the Haryana Public Distribution System ( licencing
and control Order, 2009 the District Food and Supplies Controller of
the concerned district.
Clause 2 (i) of the Haryana Public Distribution
System (licencing and control Order, 2009 provides that the Lincence
of a fair. The license of a fair price shop shall be granted for a
minimum number of 600 ration cards not exceeding 1200 ration cards,
but in rural areas a village shall be treated as one unit for this purpose
and as such the license for the fair price shop may be issued even for
less than 600 ration cards of the village.
2.9
Clause 5. (I) Licensing authority shall call for applications through local
publicity and munadi in the local area of the Fair Price Shop. If any
applicant is a graduate he shall be preferred. The order of preference of all
eligible applicants shall be as under:-
2.10
1.
Self Help Group or Sakshar Mahila Group;
2.
Unemployed female/ male graduate;
3.
Scheduled Caste female/ male;
4.
Backward Class (A) female/ male;
5.
Ex-serviceman.
A committee comprising District Food and Supplies Controller, Inspector
Food and Supplies concerned and the Sarpanch of village in rural area
and District Food and Supplies Controller, Inspector Food and Supplies
concerned and Municipal Councilor in urban area shall recommend to the
licensing authority the name of the eligible applicant as per these
priorities/ preference.
2.11
Clause13. (I) No holder of a license issued under this order shall
contravene any of the terms or conditions of the license or of any control
order issued under the Act. If he contravenes any of the said terms or
conditions, without prejudice to any other action that may be taken
against him, the licence shall be suspended immediately without giving
any notice. If the licensing authority is satisfied that the licensee has
contravened any of the conditions of the license or is not performing his
responsibility and duties properly, the licensing authority shall take one or
more actions against the licensee as mentioned below:(i)
forfeiture of the security deposit in full and suspension of licence:
Provided that the licence may however, be validated and
suspension revoked by depositing the amount of security by the
licencee;
(ii)
cancellation of the license and forfeiture of the security deposit in
full;
(iii)
registration of criminal case as per provisions of the Act:
Provided that no order with regard to above mentioned penal
action shall be made under this clause unless the licensee has
been given a reasonable opportunity of being heard.
2.12
Clause 2(h) Provides the eligibility condition for the applicant. Provides
that a person having 10+2 or its equivalent qualification, not less than
21 years of age and is a resident of the locality for which the fair price
shop license in applied for. However, in case of a Group like Self Help
Group and Sakshar Mahila Smooh, the condition of 10+2 pass and age
will not apply;
2.13
Clause-9 of the Haryana PDS control Order 2009 provides that
responsibilities and duties of the Fair Price Shop Licensees shall include
inter alia(i)
sale of essential commodities as per the entitlement of ration card
holders at the retail issue price fixed by the State Government
under the Public Distribution System;
(ii)
display of upto date information on a notice board at a prominent
place in the shop on a daily basis regarding(a)
list of Below Poverty Line and Antyodaya beneficiaries;
(b)
entitlement of essential commodities;
(c)
scale of issue;
(d)
retail issue price;
(e)
timings of opening and closing of the Fair Price Shop;
(f)
stocks of essential commodities received during the month;
(g)
opening and closing stock of essential commodities; and
(h)
authority for redressal of grievances/ lodging complaints with
respect to quality and quantity of essential commodities under
the Public Distribution System;
(iii)
maintenance of record of ration card holders (Above Poverty Line,
Below Poverty Line and Antyodaya) stock register, issue or sale
register;
(iv)
furnishing of copies of specified documents namely, ration card
register, stock register, sale register to the office of the Gram
Panchayat or Nagar Palikas or Vigilance Committee or any other
body authorized for this purpose;
(v)
display of samples of foodgrains being supplied through the Fair
Price Shop;
(vi)
production of books and records relating to the allotment and
distribution of essential commodities to the inspecting agency and
furnishing of such information as may be called for by the
authority;
(vii)
account of the actual distribution of essential commodities and the
balance stock at the end of the month to the concerned Sub
Inspector Food and Supplies/ Inspector Food and Supplies/
Assistant Food and Supplies Officer and District Food and Supplies
Controller with a copy to the Gram Panchayat/ local municipal
body;
(viii)
opening and closing of the Fair Price Shop as per the prescribed
timings displayed on the notice board;
(ix)
the ration card holder shall not be denied the supply as per
entitlement of essential commodities lying in stock with Fair Price
Shop Owner under the Public Distribution System;
(x)
the Fair Price Shop Owner shall provide the relevant extract of the
record maintained by him to the beneficiary on payment of Rs. 10/only;
(xi)
the Fair Price Shop Owner shall not retain ration card after the
supply of essential commodities;
(xii)
the Fair Price Shop Owner shall use only such weights and
measures which are duly verified by the Legal Metrology
Department, Haryana;
(xiii)
the Fair Price Shop Owner shall keep the complete records of the
PDS items for at least two years in his/ her safe custody;
(xiv)
the Fair Price Shop Owner shall give information every month about
the allocated PDS item, the quantity distributed by him to the
eligible consumers and the balance stock etc. to any two members
of the Vigilance Committee otherwise on supply of PDS item shall
be given to the Fair Price Shop Owner for the next month. He shall
also obtain “ satisfaction certificate” from the Vigilance Committee
regarding satisfactory distribution of all allotted items in the
previous month;
(xv)
the Fair Price Shop Owner shall be responsible for making all
essential entries in the ration cards;
(xvi)
the Fair Price Shop Owner shall store and sell essential
commodities only at the place specified in the license;
(xvii) behave with the consumers cordially and with due courtesy.
2.14 Clause 15 (1) of the Haryana
PDS control Order 2009 provides the
licensee shall submit to the licensing authority concerned a true return in
Form C so as to reach him not later than the fifth day
of
each
month, of stocks, receipts and deliveries of each of the essential
commodities pertaining to the preceding month. Clause 15 (2) says
notwithstanding anything contained in sub-clause (1), the State
Government or the Director of Food Supplies or the Collector of the
District or the licensing authority may direct the licensee to submit a
return in a form prescribed by that authority.
2.15 Observations
It was observed during the visit to various districts in the State that the
instructions issued by the State Governments are not being followed
properly. Some of the observations are as follows:(i)
Timings of shops are not maintained.
During the visit of the
Committee in village Arya Nagar in District Hissar, it was found that
both the FPSs in the village were closed at about 10.30 am on
Tuesday. Similar was the position in village Ghaseda District Mewat
where the Committee found that the FPS run by one Mr. Zakhir was
closed at 10.50 am on Sunday i.e. 29th November, 2009 (a working
day for PDS). BPL beneficiaries complained that they are given only
30 kg wheat once in three months. The shop opens once or twice a
month and shopkeeper always says that ration has not been allocated
to him. The villagers complained that ration, if at all distributed, is
distributed after the 15th of the month. Most of the villagers are
working as labourers and they don’t have sufficient money to buy the
ration in one go.
(ii)
Many card holders of the village of BPL and AAY category complained
that they had not received their entitled ration for the month of
October and November, 2009. The officers of the Department who
accompanied the team did not have an answer to the same. It was
evident that there is no accountability of the field staff for nondistribution by the FPS dealers. It was also told by the villagers that
there is a political interference in the allotment and functioning of FPS.
(iii)
The role of Vigilance Committees in PDS is only on paper.
It was
observed that Vigilance Committees are not functioning properly. The
Utilisation Certificate is signed by the Members of the Vigilance
Committee without actually verifying the factual position.
Generally
Vigilance Committee member do not remain present during the
distribution of PDS items by the FPS dealers. The Committee was not
shown any records pertaining to the meetings of Zila Parishad with
District Food & Supply Controller.
(iv)
The recommendation / resolution of Gram Panchayat regarding the
FPS licence is not based on merit and is based on extraneous
considerations. The DSO at Palwal informed that the political
interference is to such an extent that many FPSs in the area are run by
20-25 people belonging to 2-3 families of a village who have political
connections. Even the Municipal Councilors have FPSs in their name or
in the name of their relatives / dependents.
(v)
Representatives of CONFED do not accompany the vehicle which
delivers the food grains to the depot holder. The same was confirmed
by the various CONFED officials that the Committee met during its
visit.
(vi)
Sealed samples are not being issued to CONFED and thereby to the
FPS dealers. This affects the quality of the food grain that ultimately
reaches the beneficiaries.
(vii)
As per the guidelines of Hon’ble Supreme Court of 2003 the
distribution of PDS commodities by the FPS dealers should be through
out the month.
In view of the time schedule being adopted if the
payment is made in time, the release orders are issued accordingly
and delivery is also made in time, it remains open only 15 days for
distribution. Thus it is a clear violation of the directions of the Hon’ble
Supreme Court.
The Committee feels that the time schedule should
be adopted in such a way that the FPSs are open for distribution of
commodities through out the month.
CHAPTER 3
DISTRIBUTION OF FOODGRAIN
3.1
Public Distribution System is operated under the joint responsibility of the
Central and the State Governments. The Central Government has taken
the responsibility for procurement, storage, transportation and bulk
allocation of food grains to States and Union Territories and maintenance
of buffer stocks. State and Union Territory Governments are responsible
for identification of
BPL and AAY families; issuance of ration cards to
eligible families; storage in state/UT godowns; licencing and supervision
over fair price shops; distribution of ration to ration card holders through
the Fair Price Shops and eliminating leakages/ ghost cards etc.
3.2
The Food and Supplies Department Haryana is headed by the Financial
Commissioner and Principal Secretary to the Government of Haryana and
there is a Director Food and Supplies. At field level the District Food and
Supplies Controller heads the hierarchy and the District Food and Supply
Officers and other officers are answerable to him.
3.3
The State of Haryana is a wheat surplus State. The Central Government
under its decentralized procurement policy has allowed certain agencies of
the State Government to procure wheat on its behalf. The FCI is the
agency of the Central Government for procurement of food grain. In
Haryana the State Food and Supplies department, HAFED, FCI Haryana
Region, Haryana Warehousing Corporation, CONFED and Haryana Agro
Industries Corporation have been allowed to do procurement on behalf of
the FCI in the ratio of 20%, 33%, 20%, 9%, 9%, and 9% respectively. All
these agencies procure wheat from the farmers who come to the ‘Mandis’
set up by Haryana Agricultural Marketing Board and store it in their
godowns.
3.4
The food grain (wheat) is procured by the various agencies at the
Minimum Support Price (MSP) and stored on behalf of the FCI. The
Central Government makes allocation to the State under the Public
Distribution System as per its entitlement. The rest of the grain is utilized
for other schemes of the Central Government or is sent to other deficit
States as per the directions of the Central Government. The FCI
reimburses the State agencies for the price paid and storage costs.
3.5
The Committee visited the godowns of the FCI and Food and Supplies
department to see the conditions of storage. It was observed that the
godowns owned by the FCI have scientific storage system. However, due
to very heavy procurement in the last season a huge quantity of wheat
was still stored in the ‘Mandis’ by all the agencies. Some wheat was stored
in covered sheds while a lot of wheat was stored in the open and even on
roads inside the ‘Mandis’ by creating temporary platforms of wooden
crates. There is an urgent need for creating more storage space in the
State.
3.6
There was no system of weighment of grain either in the ‘Mandi’ or in the
godowns of the Food and Supplies Department visited by the Committee
at Ambala, Rohtak and Bhiwani. The trucks are weighed at private weigh
bridges (Dharam Kanata) and after loading they are again weighed at the
same weigh bridge.
3.7
No one accompanies the trucks from the godowns to the FPS. There is no
system of checking after the food grain reaches the Fair Price Shops and
before it is distributed to the beneficiary. Hence there is no check that the
entire quantity of grain reaches the Fair Price Shop.
3.8
There is absolutely no system of preparing samples at the godowns of the
State agencies. During the visit to the Mandi in Bhiwani where the stock of
the Department of Food & Supplies, Government of Haryana was there for
distribution through CONFED, it was found that no samples are prepared
for giving to the wholesalers and FPS dealers. The concerned officers of
the State Government and the DM, CONFED, Bhiwani were requested to
follow the joint sampling system while lifting the food grains and sample
should also be given to the FPS dealers at the time of delivery. State
Government officials were requested to issue necessary instructions in this
regard to all the agencies involved in this process.
No samples were
found at any of the Fair Price Shops visited by the Committee. Mr. Ajay
Jain Advocate, General Secretary Yuva Shakti, at Ambala and Mr. Suresh
Valmiki a social worker at Rohtak complained of the poor quality of wheat
supplied at the Fair Price Shops. Diversion takes place in two ways, one by
selling the PDS grain in black market and secondly by substituting good
quality of grain by poor quality. The system of joint sampling must be
enforced at all the storage points and samples must be displayed at the
Fair Price Shops so that the consumer can check the quality of food grain
supplied to him.
3.9
The Committee found that the FCI has electronic weighbridges at their
godowns. At the time of delivery of food grain to the CONFED a gate pass
is issued in which the number of bags loaded in the truck is mentioned.
The gate pass is prepared manually. A weigh check memo is prepared in
the computer system when the truck is finally weighed but copy of the
weight check memo is not supplied to the truck driver. The Committee
feels that that the truck driver should be supplied a copy of the weigh
check memo.
3.10
CONFED is the agency of the state authorized to receive the PDS grain
from the FCI or the other agencies authorized by the Government for
procurement and transport the same to the Fair Price Shops. CONFED is
headed by a board of Directors and a Managing Director. The District
Manager (DM) is the Head of District Office, besides him there are
salesmen and storekeepers also. The CONFED is fully responsible for
delivery of the food grain at the doorstep of the FPS. The storekeeper is
supposed to make entries of the food grain in the stock register of each
and every depot holder. However, since no officer of the CONFED actually
accompanies the truck such entries are not being made. CONFED has to
submit daily statement of delivery of food grain to the DM, DFSC,
respective SDM’s and area inspector/ AFSO. The cost of transportation is
added in the sale price of food grain except AAY wheat which is being
borne by the State. In Rohtak City the transportation is being done by
Co-operative Store. They also have an FPS.
The Committee observed
that there is no difference in the functioning of this FPS as compared to
other FPSs.
3.10
Tenders for transportation are invited every year. A Centralised
advertisement inviting tenders of door step delivery of food grain and levy
sugar are called through Director, Public Relations, Haryana which is
published in 3-4 leading newspapers of Hindi and English. Wide publicity
of NIT is given and notice of NIT is also displayed/ exhibited at prominent
places like the offices of DC, ADC, SDM, DFSC, BDPO, Tehsildar etc.
3.11 District Level Transport Committee under the Chairmanship of Deputy
Commissioner has
been
authorized
to
open
the
tenders, make
negotiations and finalize reasonable and workable transportation rates.
The other members of the committee are ADC, SDM, DFSC, and DM
CONFED. The committee recommends the rates to the Managing Director
CONFED for final approval. As per instructions negotiations are to be
conducted by the committee with the lowest tenderer (L-1)only.
3.12
There is no fool proof system for the monitoring of transportation of food
grains from the State godowns to the FPS. Only a gate pass is issued to
the truck / vehicle carrying food grains and a banner having marking “PDS
GRAIN” is put on the front side of the truck.
3.13
The State makes allocation to every district and the District Food and
Supplies Controller (DFSC) makes the allocation for every Fair Price Shop
as per the number of ration cards attached to the shop. The allocation
orders are sent to CONFED.
3.14
On the basis of entitlement, Fair Price Shop owner deposits the cost of
food grain with the authorized bank in the account of CONFED from
the
25th to 30th every month. CONFED in turn lifts the food grain
from the godowns of FCI/ State Agency and delivers the stock at the
door step of the Fair Price Shop. The Committee was informed that
food grain reaches the shops by 10th of the month of supply.
However, the Committee
observed in Mewat district that
payment and allocation of grain
for the
following schedule is followed :
1. Usually the payment is received from FPS dealers by 5th -7th day
of the month and same takes 3-4 days in clearance by bank.
2. By 10th or 12th day of the month the Release Order is issued by
DFSC
3. Lifting by CONFED starts from 11th or 13th day of the month from
the godowns of the procurement and storage agencies in Haryana
for which the Release Order.
4. Foodgrain is delivered at the fair price shops latest by 20th day of
the month.
3.15
The Committee found that the system is violative of the directions of the
Supreme Court which require that the Fair Price Shops should remain
open through out the month and that the beneficiary should be allowed to
draw ration in installments. The system effectively ensures that the
distribution of ration has to take place only between the few days when
the delivery is made to the Fair Price Shop and when he has to close his
balance to deposit money for the next month. This system also
encourages corruption as the depot holder has the opportunity to tell the
beneficiary in the beginning of the month that no stock has been received.
A poor beneficiary is always likely to spend most of his earnings
immediately on receipt of wages at the beginning of the month and may
not be left with enough money to buy ration after the 10th of the month.
Since ration is distributed for a limited number of days the shops do not
remain open throughout the month.
3.16
There were general complaints of short supply by the Fair Price Shop
owners. The Committee inspected several Fair Price Shops. At one of the
shops in Faridabad, it was found that the Fair Price Shop owner was
supplying only 28 kg. wheat to every BPL family, instead of their
entitlement of 33 Kg. per month. He was also not making any entry of the
quantity supplied in the ration cards. In Topkhana colony of Ambala one
FPS owner Ishwar Chand had stored PDS grain at three different
premises. There were complaints against one FPS owner Pawan Kumar of
Chhibba village in Ambala that he used to open his shop before 8.00 AM
or on Sundays only and did not open his shop on all the working days
during prescribed timings.
3.17
The Committee was also informed during public hearing and visit to
various urban colonies and villages in districts that the FPS dealer makes
the false entries in the ration cards of the beneficiaries without actually
giving the commodity.
3.18
In the year 2004 a BPL survey was conducted in the State. In this survey
all the information about the social and economic conditions of all the
families was collected on a 13 point scale. When the information collected
by the survey was sought to be verified through the Gram Sabhas it was
found that ineligible families having good means were going to be
included in BPL list while eligible families were being left out. It was found
that correct figures have not been collected during the survey due to
which there was discontentment amongst the public. Hence the survey
was cancelled and
fresh survey was ordered. The fresh survey was
entrusted to Ex-servicemen. This survey was completed in 2007.
3.19
As per the Planning Commission there are 7.29 families living below the
poverty line in the State. However, the survey revealed that there are
about 11.97 families below poverty line (BPL + AAY). The category wise
break up of the families is as under
3.20
Ration Cards as on 30.06.2009
Category
Ration Cards
Units
Colour of Ration
Card
APL
42,35,869
1,87,80,946
Green
STATE BPL
*3,83,361
16,33,481
Center BPL
*5,28,399
AAY
*2,85,186
12,43,240
TOTAL
54, 32,815
2,41,03,522
3.21
24,45,855
Green with stamp
Yellow
Pink
Since the number of BPL families found in the survey was more than the
estimates of the Planning Commission, the State decided in year 2008 to
treat 3.83 lakh families as “State BPL”. The BPL cards issued within the
limits prescribed by the Planning
BPL”.
Commission are named as “ Central
By an order dated 04.09.2008 it was decided that the State will
collect the APL and BPL allocation and distribute it amongst the Central
BPL and State BPL equally at 35Kg.per month per ration card. The
difference in cost between the APL wheat and State BPL wheat will be
borne by the State.
3.22
The allocation of wheat to the state of Haryana category wise is as under
CATEGORY
ALLOCTION
SCALE
(In Mt per month)
(In Kg. per card
per month)
BPL
7501 (from 7/08) + 35
15,000 Addl. Allocation
17,381 (from June 08)
35
AAY
10,235
APL
3.23
(from 4/08)
35
The quota of the BPL has been reduced to 33 Kg. per family per month.
BPL card holders are given wheat @ Rs.4.84 per Kg. AAY families are
being distributed 35Kg. wheat per month @ Rs.2.10 per Kg. Wheat is
supplied to AAY families at Rs. 2.10 per Kg.
(additional 10 paise are
charged on account of VAT (Value Added Tax).
3.24
During the public meetings a demand was repeatedly raised that family
norm for distribution should be replaced by the earlier system of fixing
entitlement for every individual. It was stated the present system leads
the consumers to artificially divide their families in order to obtain more
quantities of PDS commodities specially Kerosene Oil. It was stated that
there are many ration cards with only one or two members and they do
not require 33Kg. wheat every month. They actually draw less ration and
the rest is sold by the Fair Price Shop owner in the black market. In the
earlier reports, this Committee has mentioned that the individual norm has
merit. The Government may consider reverting to an individual as a unit
for allotment of Public Distribution grain.
3.25
Mr. Vinod Mittal of the Flour Mills Association represented in Ambala that
the flour mills in the State are prepared to give fortified atta at no extra
cost and will charge only for grinding and packing. The official informed
the Committee that the experiment of giving atta was tried at some places
in Haryana earlier but it was stopped due to large scale diversion involved
in the process.
3.26
It was a general agreement that atta(wheat flour) if obtained after
properly grounded wheat and delivered in sealed polypacks would be
good proposition and it would also save wheat going into black marketing.
As the shelf life of wheat flour is only 30-45 days, a proper time line is
required to be followed for distribution.
Government of India’s
instructions on this subject dated 17th January, 2008 have to be followed
scrupulously.
3.27
In order to get a ration card for the first time, the consumer has to apply
in the prescribed form D-1 either in the office of District Food and Supplies
Controller/ Assistant Food and Supplies Officer/ Inspector Food and
Supplies in whose jurisdiction he resides. The application forms are
available in the Office of DFSC/AFSO/IFS. Along with the application he
has to submit two attested passport size photographs of his family. The
applicant has to give an affidavit declaring that he has not got prepared
any ration card anywhere in India earlier and names of the members of
his family are not included in any of the ration cards. He also has to
declare his permanent address and disclose his place/ places of residence
during the last five years. He has to give an undertaking that if any
information is found to be false, he would be liable for action as specified
in the rules/Act. The consumer is given a slip indicating the date when he
should contact the concerned office for getting the ration card. The Sub
Inspector/ Inspector verifies the particulars by physically visiting the
residence of the applicant and making necessary inquiries. He also
consults
the
voter
list
and
census
records
before
making
his
recommendations. The DFSC/AFSO issues the ration card and paste one
photograph of the family on the same.
3.28
Mr. Raj Kishore a Municipal Councilor informed the Committee in a Public
Meeting at Faridabad that an applicant had to pay Rs. 500/- 1000/- for
getting a ration card.
3.29
It was informed by the District officials in Hissar that APL ration cards can
be issued to the applicants after verification by the Area Inspector.
3.30
The ration card has become a valuable document. It serves as an
identity card. It is required for availing benefits under various other
schemes of the government. This is in gross violation of the provisions
of the Public Distribution System (Control) Order, 2001 issued by the
Central Government. Ration card should be de-linked from all other
schemes and steps should be taken to ensure that it is not used as an
identity card. The Committee also further suggests that in place of ration
card a food entitlement card may be issued which can be used
supply under Public Distribution System. The Committee
only for food
also feels that it is
appropriate if the name of TPDS is changed to ‘FOOD FOR POOR SCHEME’.
3.31
The Committee found that many ration cards in the State had Rubber
Stamp for changing the category. In fact all the persons in the ‘State BPL’
category have a stamp on the Green ration cards instead of having Yellow
ration cards. The Committee was informed that the ration cards were
issued in the State in 2005. Fresh BPL survey was finalized in 2007. At
that time instead of issuing new ration cards rubber stamp was affixed to
change the category. A list of all those who were earlier in APL category
and were found to be eligible for BPL ration cards was prepared
separately and their ration cards were marked with rubber stamp to
change their entitlement. Similarly if any person in BPL or AAY category
was found to have an improved status and fell in APL category his card
was accordingly stamped as APL.
3.32
The State agency CONFED is responsible to lift the foodgrain from the
procuring agencies and to deliver the same at the doorstep of the Fair
Price shops. The CONFED does not have its own trucks and it appoints
transporters through Tender process. The transporters appointed through
tender process usually do not have sufficient trucks and usually they have
one or two trucks of their own and rest of the trucks is hired by them.
The Committee observed that the transporters quote less than the actual
rates to get the Contract. This clearly gives inference that they recoup the
losses by diverting the foodgrain. For instance in the District of Mewat,
there are three transporters
i. One for Nuh,
ii. One for Firozpur Zirkha, Nagina, Punhan covering 193 FPS in
total.
iii. One for Hathin
On 6th March 09 tender was issued and 6 applications were received. The
transporter named Hamida was appointed and his rates for transportation
of grain were
Within District – 6.90 per quintal
Out of District- 11.50 per quintal
The rates of transportation in the previous year were Rs. 13 per quintal
for within district and out of district 20.50 per quintal. It is pertinent to
mention that the rates for the previous year was double the rates of the
current year. The transporter himself quoted such low prices and later in
August he refused to Continue as transporter even at the cost of forfeiting
his security amount. Again on 29.8.2009 fresh tenders were issued for
Sub division Nuh. All tender form were rejected due to higher rates and
Tender Committee authorized D.M to get the work done for Sept and Oct
09 only on and below the last year rates i.e Rs. 13.00 within District and
Rs. 20.50 out of district due to the election code in force . Later again on
29.10.09 and 8.11 2009
November
fresh tenders were issued
2009 to March 2009.
for period of
Transporter named Harkesh was
appointed on the rate as follows:
Within district: 12.50 per Q foodgrain
Out of district 20 .00 per Q foodgrain
3.33
Committee on perusal of transporters file observed that the transporter
Harkesh have only two vehicles both having capacity of 9 ton. Officer of
CONFED informed that as the number of vehicles are not sufficient the
transporter hires trucks for supply of foodgrain to FPS. As the private
trucks are hired by the Transporters to carry and transport foodgrain the
question arise that why the private truck owners transports the foodgrain
in lesser rates than the market rates. These facts give direct inference
about the Diversion of the foodgrains during transportation. Similar facts
were observed while perusing transportation files pertaining to other
districts.
3.34
Further, it is to be noted that no officer of CONFED accompanies the truck
while transportation of the foodgrain from procurement agency to the fair
price shops. There is no monitoring by the CONFED officers on the
transportation of foodgrains. Once the foodgrain is lifted and loaded in the
truck from the godowns of the procuring agencies it is totally in the hands
of the transporters. The transporter and whether he delivers the full
quantity at fair price shop or not.
3.35
The Department officials are duty bound to check whether the foodgrain
have reached the fair price shop or not. The department has to certify
that the 100 % foodgrain has been delivered by the transporter and give
the same to the CONFED before the bills pertaining to same is cleared.
However, the Committee observed that the department officials are not
checking the delivery of the foodgrain by CONFED appointed transporters
at the fair price shops. This clearly indicates the connivance of CONFED
officers, department officials and the transporters.
3.36
During the visit to various Districts of the State, the Committee inspected
the files of CONFED regarding the tender for transportation.
The
Committee observed that there is no minimum requirement of trucks for
the transporter who apply for tender. There are some transporters who
have only 2-3 trucks have been given the contract for transportation.
These transporters hire the vehicles from the market for transporting the
food grains.
Besides, the rates quoted are very low and finally the
contract is awarded on such rates that practically it may not be possible to
undertake the work at such low rates.
The Committee feels that the
transporters who are given the contract at such lower rates may be
indulged in malpractices. It was also seen that the same contractor is
given the contract in the Districts continuously for years. Therefore, it is
necessary that some basic criteria may be fixed so that only those who
qualify those criteria / conditions can apply for tender. The condition of
minimum number of trucks, minimum turnover etc., may be prescribed.
The Tender Evaluation Committee must ensure that the transporter who is
handling the transportation in the district for the last two years is not
given the contract for the third year. This may be mentioned as one of
the condition in the tender notice.
3.37
There is a general complaint regarding the less allocation of kerosene oil
to APL families which are not using LPG.
It was informed that APL
families are given three litre kerosene oil per month while the allocation to
BPL and AAY families is 9 litre per month.
It was observed by the
Committee that in Haryana generally kerosene oil is not used for cooking
purpose in rural areas.
Rather people use the kerosene oil for lighting
purposes as there is no 24 hour electricity supply is available. In urban
areas also generally people cook on LPG and kerosene oil is used for
lighting purposes.
However, poor people and migrant labour etc. who
lives in the outskirts of the city use kerosene oil to some extent for
cooking purposes.
Most of the kerosene oil allocated to the FPSs is
diverted in the black market. One of the reason for this black marketing is
non-availability of open sale kerosene oil in the market.
Government
should take steps to allow the open sale of kerosene oil at reasonable
price, so that those who are in need of kerosene oil can get the same in
the open market and need not to encourage diversion / black marketing.
Separate licences for open market sale can be issued by the oil companies
once a policy decision is taken by the Government of India.
CHAPTER 4
MODE OF APPOINTMENT OF DEALERS
1.
The Committee was informed that all appointments of licencees for Fair
Price Shops have so far been made on the basis of the Haryana Control
Order of 2002. Only a few appointments have been made after the
coming into force of the new Haryana Public Distribution System
(Licensing and Control) Order, 2009 which came into effect from
14.07.2009
2.
Clause 5 of the Haryana Control Order 2002 provides that The District
Food and Supplies Controller of the concerned District shall issue a licence
for regulating the sale and distribution of the essential commodities and
shall indicate the duties and responsibilities of the Fair Price Shop owner.
3.
No qualifications are prescribed in the Haryana Control Order 2002 for FPS
licence. No procedure is prescribed. The Committee was informed that as
per existing norms an FPS must have a minimum 600 cards attached to it.
Whenever the number of cards with any FPS exceeds 1200 a new FPS is
created. However, in rural areas a new FPS can be issued a licence
treating the village as a unit. In such a case the FPS can have lesser
number of cards attached to it.
4.
The Committee inspected the files pertaining to appointment of FPS
dealers in the district of Ambala. The DFSO explained that in rural areas,
whenever there is a vacancy for an FPS, the applicant is recommended by
the Gram Panchayat. The vacancy is advertised and applications received
are scrutinized at the DSO/AFSO level. Licence is granted by the DFSC
keeping in view the recommendation of the Gram Panchayat.
5.
The Committee inspected the file of Bhupender Singh s/o Jaspal Singh,
Village Tandwal, Tehsil, Barara. It was found that the Gram Panchayat
passes a resolution which is forwarded in original to the District Food &
Supplies Controller by the Block Development & Panchayat Officer. In the
case of Bhupinder Singh, the resolution was passed by the Gram
Panchayat on 06.11.2008 and it was forwarded by the Block Development
& Panchayat Officer on 18.11.2008. Bhupinder Singh submitted an
application to the DSFC in Form ‘A’ on 20.11.2008. Along with application,
he filed an affidavit stating that he wanted a ration depot at village
Tandwal and that he has not been awarded any ration depot / FPS for
foodgrain or any other controlled commodities in the State of Haryana
either in his name or in the name of his dependents or to any other set up
in which he or his family members / dependents have any financial
interest that he or any of his family members are not running any FPS and
that he had not submitted any application earlier.
That he was not
working in any factory / firm full time or part time. That he or his family
members
had
commodities.
not
been
penalized
for
distribution
of
controlled
That he had never been convicted by any court of law.
That he has not directly or indirectly any ration depot running in the State.
And that he undertakes to abide by the rules.
He also submitted the
details of his family members and a copy of his ration card and a
certificate of his educational qualification.
6.
The application was marked to the Assistant Food & Supply Officer (AFSO)
for verification. After verification, he was granted the licence.
7.
The DFSO explained that in urban areas, whenever there is a vacancy, a
request is made to the DPRO for advertising the vacancy. The persons
desirous of having the FPS licence apply along with the necessary
documents. The applications are sent to the DFSO or Supply Inspector.
The officer submits a report on the application according to its merits. On
receipt of the report, necessary action is taken for grant of licence to the
deserving candidate keeping in view that the applicant should be able to
get 600 cardholders to draw ration from his shop. If the applicant is able
to register 600 cardholders, he submits a list to the AFSO / Inspector for
verification. Licence is issued to the applicant on the recommendation of
the AFSO / Inspector.
8.
The Committee inspected a file on Chhaya Srivastava d/o Krishan Mohan
Srivastava, r/o house NO.2052/2 Tagore Garden, Naraingarh Road,
P.OBaldeve Nagar, Ambala City. The application was submitted on
06.04.2007. It was forwarded to AFSO, Ambala City for verification,
Alongwith the application there was a recommendation from Ms. Vinita
Sharma, Municipal Councilor, Ward No.1, Ambala City. Affidavit and other
documents were filed along with the application. On 08.04.2007, request
was made to the DPRO for advertising the vacancy. The publicity was
done though munadi (beating of drums) on the afternoon of 20.04.2007.
It appears that another application of one Jamil Ahmed s/o Mohammad
Yousuf, was also received. However, the licence was ultimately awarded
to Ms. Chhaya Srivastava.
9.
It appears that the receipt of the second application by Jamil Ahmed was
a mere formality. The Committee asked the DFSO as to how Chhaya
Srivastava came to know about the vacancy and applied for the same, to
which no satisfactory answer was given.
10.
The Committee desired to see more application files for grant of licence to
clear the doubts. In spite of several requests, the officials did not produce
other files. One other file was brought, but when the Committee started
scrutinizing the same, it was found that there was only one application in
the file and the rejected applications were not on the file. The officials
stated that they had not brought the complete file. In spite of repeated
requests, the file was not shown to the Committee again.
11.
The findings of the Committee at Ambala were confirmed by inspection of
files in the District Kurushetra. The Committee inspected two files of
allotment of FPS in village Pipli and in tehsil Thanesar. One Rajesh Kumar
s/o Om Prakash applied for an FPS in village Pipli. His application was
recommended by the Sarpanch. The report of the DSO showed that after
the receipt of this application, publicity was done by the munadi (beating
of drums). No other application was received. Rajesh Kumar was required
to give the name of 600 card holders who were prepared to take the
ration from him. After he submitted the list, he was allotted the FPS. The
similar position was seen by the Committee regarding the allotment of
shops at District Mewat, Bhiwani and Hissar.
12.
One Anshul Garg s/o Sh Naresh Kumar Garg applied for a FPS in Ward
No.1, Ladwa. His application was recommended by Shri Ramesh Gupta,
MLA of Thanesar. The application was marked to the AFSO for report on
22.12.2006. According to the report of the AFSO, there were 6250 ration
cards in Ladwa and 10 FPS were functioning. However, 6600-6800 D-1
forms
had been distributed out of which some were still pending and
more ration cards were likely to be issued. Thus, the condition of 600
ration cards was fulfilled.
Anshul Garg was issued a letter to get the
names of 600 card holders who were prepared to draw ration from his
shop. The AFSO submitted report on 20.01.2007 stating that Anshul Garg
had fulfilled the requisite conditions and submitted a list of 600 card
holders. He was allotted the FPS vide order dated 30.1.2007.
13.
Prince Khurana s/o Sh Suraj Prakash applied for an FPS in Ward No.1,
Kurukshetra on 07.2.2008. His application was recommended by the
Municipal Councilor and MLA. Publicity was given by munadi and FPS was
allotted to Prince Khurana after completing the requisite formalities.
Similarly, in the case of Shri Narendra Behl s/o sh Jagdish Rai, the FPS
was allotted on the recommendations of MLA, Thanesar and in the case of
Sh. Sanjeev Kumar s/o Suresh Kumar, the application was recommended
by the Municipal Counselor and allotted without any publicity.
14.
In Faridabad, the Committee visited Sector -3 and found that that one Sh.
Surinder Yadav and his father, Ram Sudhar Yadav were both having FPSs
in the same district. Discussions with officials also revealed that there
were instances where the son of a Sarpanch had been granted a licence
for an FPS on the recommendation of the Sarpanch. The Committee was
informed that a decision had been taken about 15 years ago, to treat a
son who is living separately from his father and is not dependent on his
father as a separate entity. It is for this reasons that the explanations to
Clause 4 (3) of the Haryana Public Distribution System (Licensing and
Control) Order, 2009 defines ‘family’ as ‘including all those persons whose
names have been entered in the ration card of a fair price shop owner or
who are dependent upon him’.
15.
Though the applicant is required to give a declaration to the effect ‘that
he has not been awarded any ration depot / FPS shop for foodgrain or
any other controlled commodities in the State of Haryana either in his
name or in the name of his dependents or to any other set up in which he
or his family members / dependents have any financial interest that he or
any of his family members are not running any FPS and that he had not
submitted any application earlier’ shops are allotted to the family
members of the existing FPS dealers
because of the unrealistic
interpretation given to the ‘family’. This leads to the corrupt practice of an
influential family having several FPS licences. The Government should take
a fresh look into this aspect and remove this anomaly by redefining the
‘family’
to
include
son/daughter/brother/sister/
daughter
in
law/
wife/widow of a brother etc.
16.
In District Hissar, during the discussion with the District officials it was
informed that an unemployed graduate was allotted one FPS in the rural
area on the recommendation of the Sarpanch. The allotment made to him
because the earlier FPS owner had resigned. Based on the number of
cards, a rough calculation showed the income from sale of food grains,
kerosene oil and sugar after deducting expenses as less than Rs.1000/-. It
was not stated as to how the allottee would be able to run the shop and
whether he was told that he would not have enough income and infact
suffer loss.
17.
The Committee found that allotment is on political considerations. The
Sarpanch is more powerful than an MLA and he has direct approach to the
Chief Minister. It is only on the basis of the resolution of Panchayat that
the FPS dealership is given. It was also seen that in practice, the
recommendations
of
local
politicians,
MLAs,
Municipal
Councilors,
Sarpanch and other influential people are the only qualification for getting
FPS licences. Other conditions as prescribed in the Haryana State Control
Order of 2002 and latest order of 2009 are not followed while granting the
FPS dealership. No vacancy is advertised. There are no qualifications for
the applicant.
18.
The Haryana Public Distribution System (Licensing and Control) Order,
2009 came into effect from 14th July 2009. Clause 5 of the Control Order
of 2009 is as under :-
19.
Licensing Authority shall call for applications through local publicity and
munadi in the local area of the Fair Price Shop.
If any applicant is
graduate he shall be preferred. The order of preference of all eligible
applicants shall be as under:i. Self Help Group of Sakshar Mahila Group
ii. Unemployed Female / Male graduate ;
iii. Scheduled Caste female / male
iv. Backward Class (A) female / male;
v. Ex-serviceman.
20.
A Committee comprising District Food and Supplies Controller, Inspector
Food and Supplies concerned and the Sarpanch of Village in rural areas
and District Food and Supplies Controller, Inspector Food and Supplies
concerned and Municipal Councilor in urban area shall recommend to the
Licensing Authority the name of the eligible applicant as per these
priorities / preference. The licensing authority shall appoint such
recommended applicant as Fair Price Shop Owner within the next 7 days.
Appeal against the decision of the licensing authority shall lie before the
Deputy Commissioner within a period of fifteen days of issue of the orders
of the Licensing Authority. The Deputy Commissioners shall decide the
appeal within 30 days.
The orders of the Appellate Authority shall be
final.
21.
The provisions of the Haryana Control Order 2009 recognizes and gives
legitimacy to political interference in appointment of dealers by making
the Sarpanch and the Municipal Councilor as members of the rural/urban
committees appointed for recommending the applicants for allotment of
licences for Fair Price Shops. The Committee is of the view that political
involvement in the grant of licences has to be completely eliminated.
22.
Applications for FPS licences should be invited through publication in the
local news papers. Wide publicity should be given so that all persons
desirous of applying come to know about the vacancy.
23.
It is a well documented fact that the FPS owner is in business for the
purpose of diversion or for political influence or other influence that he
can wield by being an FPS retailer. There is massive corruption woven
around it where the participants are the shop keeper, officials of the
Department / Corporation, transporters and last but not the least the
politicians. The Committee is of the view that the reservation for various
categories provided in the Haryana Public Distribution (Licensing and
Control) Order, 2009 appears rather unnecessary. FPS licences should be
allotted to persons of the locality who are already running kirana/ grocery
shop or have the capability to do so.
24.
Though there is a clamour for allotment for FPS, the stand alone FPS does
not rehabilitate or support sustenance of any category or gender. It rather
breeds corruption.
CHAPTER 5
VIABILITY
5.1
Viability of FPS is linked with the rate of commission to be paid to FPS
dealers. The Committee discussed the issue of viability with FPS
owners and their associations, government officials and also invited
written suggestions from the public.
5.2
Viability of Fair Price Shop is critical to sustenance of Public
Distribution System and to minimize leakages of PDS grains. The
number of ration cards attached to FPS in each category, offtake of
grains, margin on commodities, cost incurred on transport and
handling, rents etc. are the determinants of viability of Fair Price
Shops.
5.3
Programme Evaluation Organisation under Planning Commission in its
evaluation Report on TPDS defined Viability of FPS to mean an annual
return of 12% or more on the working capital.1
5.4
Average gross income of an FPS is calculated as an average of the
total margins generated from the sale of sugar, kerosene, rice and
wheat (APL, BPL, AAY) and other receipts out to the sale of gunny bag
in which PDS grains are packed and sent in to the FPS.
PEO, Performance Evaluation of Targeted Public Distribution System-2005, (at
pg vi and 50).
1
5.5
The PEO report, 2005 brings out the importance of kerosene in the
income composition of the FPS. The Report states that the income
from kerosene almost equals the combined share of income generated
from sale of BPL rice and wheat and thus speaks of the importance of
keeping kerosene within the PDS retail trading to improve their
viability.
5.6
The State of Haryana provided the Committee with the following
calculation with respect to viability of FPS.
Economics of Depot
Commodi Average Scale of Total
ty
number
Distributi lifted
of ration on
quantity
cards
Wheat
Sugar
K. Oil
Total
SBPL=41
CBPL=57
33 Kg
33 Kg
AAY =31
35 Kg
SBPL,
2 Kg
CBPL
and
AAY=
129
SBPL,
10 Lit.
CBPL
and AAY
=
129
APL non 3 Lit.
LPG
holder=1
24
Margin
Amount
Total
earned
of empty margin/inco
A/c
of bag
me
grain
(In Rs)
43.19
Rs777.42 Rs.
Rs. 1554.84
Qtls
@
Rs 772.42
18/-per
@Rs. 9/Qtl.
per bag
of 50 Kg
2.58 Qtls Rs
Rs. 50/- Rs. 100.57
50.57@
@
Rs.
Rs 19.60 10/- per
Per Qtl.
bag
of
50 Kg.
1290 Lts Rs. 165/Rs. 274.23
+
per Kl.
372 Lts
=1662
lts. i.e.
1.662 Kl.
Rs.1929.64
Sr. No.
1.
2.
3.
4.
Details of Expenditure
Towns
Villages
Rent of Shop
700.00
300.00
Elect/Water Charges
150.00
150.00
Stationary
50.00
50.00
Transportation charges of
30.00
45.00
sugar
Total
930.00
545.00
Margin
1929.64
1929.64
Net earning
999.64
1384.64
1. The following is the viability of few FPS visited by the Committee in the
State of Haryana
1. FPS Dealer Somnath, PDS License No. 31, Ward No. 19, Arya Nagar, Rohtak.
There were 700 cards attached to the FPS – APL – 583, Central BPL – 21, State
BPL – 88, AAY – 8.
Commodity
Wheat
Sugar
Kerosene
Gunny
Total
Quantity
38.77quintals
2.34 quintals
2919 litres
83 bags
Expenditure
Rent
Electricity
Stationery & Miscellaneous Charges
Transportation
Total
Commission Income
Rs.18/697.86
Rs.19.60/45.86
Re. 0.16/467.04
Rs.12 per bag
996.00
2206.76
Amount
Net Income (Income – Expenditure)
450
0
100
30
580
1626.76
Apart from running an FPS, the FPS dealer was also carrying on a business of a
property dealer. He stated that he had not received sugar since the last 4
months. The officials in turn stated that the same was indeed correct and the
allocation was delayed but the FPS dealer was assured that they would get their
complete quota.
2.FPS Dealer Harish Chand, Authority No. KKDE/U/159, Kurukshetra District.
There were 1106 ration cards attached to the FPS – BPL – 98, APL – 1008.
Commodity
Wheat
Sugar
Kerosene
Gunny
Total
Quantity
32.34quintals
1.96 quintals
4004 litres
261 bags
Expenditure
Rent
Electricity
Stationery & Miscellaneous Charges
Transportation
Total
Commission Income
Rs.18/582.12
Rs.19.60/38.41
Re. 0.16/640.64
Rs.10 per bag
2610.00
3871.17
Amount
1000
500
100
30
1630
Net Income (Income – Expenditure)
2241.17
Apart from running the FPS, the dealer was also running a business of
purchasing and selling cars and was also running a separate shop selling cellular
phones.
3. FPS Dealer Deepak Prakash Jain, Shop No. PDS No. 18, Ward No. 5. He is
running the FPS since 1999. There were 1169 cards attached to the FPS –
Central BPL – 49, State BPL – 64, AAY – 104, APL – 952
Commodity
Wheat
Sugar
Kerosene
Gunny
Quantity
73.69quintals
4.34 quintals
5026 litres
157 bags
Commission Income
Rs.18/1326.42
Rs.19.60/85.06
Re. 0.16/804.16
Rs.10 per bag
1570.00
Total
3785.64
Expenditure
Rent
Electricity
Stationery & Miscellaneous Charges
Transportation
Total
Amount
200
30
100
30
360
Net Income (Income – Expenditure)
3425.64
There were two brothers who were running the shop. They stated that they had
6 members in their family and apart from the FPS, they also worked as agents
for getting licenses made for persons. They also stated that their father was a
Chartered Accountant. They stated that they should also be supplied rice and
dal, as was the case in Delhi, to make their shop more viable.
4. FPS Dealer Naresh Nagwan, PDS No. 145, Ward No. 2, Rohtak
There were 729 cards attached to the FPS – APL - 351, Central BPL – 157, State
BPL – 173, AAY – 48. 1053
Commodity
Wheat
Sugar
Kerosene
Gunny
Total
Quantity
125.7quintals
7.56 quintals
4833 litres
267 bags
Expenditure
Rent
Electricity
Stationery & Miscellaneous Charges
Transportation
Total
Commission
Rs.18/Rs.19.60/Re. 0.16/Rs.11.50 per bag
Income
2262.60
148.17
773.28
3070.50
6254.55
Amount
600
0
100
30
700
Net Income (Income – Expenditure)
5554.55
The FPS dealer stated that he was satisfied with running the FPS and also
worked as an electrician.
5. Patram, PDS No. 274, Ward No. 2, Rohtak. There were 903 cards attached to
the FPS – APL - 619, Central BPL - 92, State BPL – 150, AAY – 42. 1857
Commodity
Wheat
Sugar
Kerosene
Gunny
Total
Quantity
94.56quintals
5.68 quintals
4697 litres
201 bags
Expenditure
Rent
Electricity
Stationery & Miscellaneous Charges
Transportation
Total
Commission
Rs.18/Rs.19.60/Re. 0.16/Rs.12.50 per bag
Income
1702.80
111.32
751.52
2512.50
5078.14
Amount
1000
0
250
30
1280
Net Income (Income – Expenditure)
3798.14
Apart, from running the FPS, the dealer also used to work part-time in a factory
with his brother during off hours. He had 4 members in his family.
6. FPS Dealer Kaushalya Devi, FPS No. 1347, Faridabad. There were 683 cards
attached to the FPS – APL – 550, BPL – 133.
Commodity
Wheat
Sugar
Kerosene
Quantity
43.89quintals
2.66 quintals
2980 litres
Commission
Rs.18/Rs.19.60/Re. 0.16/-
Income
790.02
52.13
476.80
Gunny
Total
94 bags
Expenditure
Rent
Electricity
Stationery & Miscellaneous Charges
Transportation
Total
Rs.7 per bag
658.00
1976.95
Amount
Net Income (Income – Expenditure)
1000
0
100
30
1130
846.95
The husband of the FPS dealer had a job in a private firm.
5.7
The Fair Price Shops in Haryana are governed by the Haryana Public
Distribution System (Licensing and Control) Order, 2009. Under this
control order a FPS license can be granted for a minimum number
of 600 ration cards not exceeding 1200 ration cards, but in rural areas
a village shall be treated as one unit for this purpose and as such the
license for the FPS may be issued even for less than 600 ration
cards
5.8
of the village. Clause 5 of the said Order states that the
license under
this control order can be granted to a Sakshar Makhila
Smooh or Self
help Group or a cooperative society or a corporation.
As seen above and as stated by the Committee in its earlier reports, a
stand alone FPS is not profitable and even if the Commission is
increased to 100%, it will not result into sufficient income for the FPS
dealer. It is a matter of common knowledge that in order to augment
his income, an FPS owner diverts PDS food grains in the black market
and shares the ill-gotten money with the officials of the Department.
5.9
The Committee is of the view that since any amount of increase in
commission would not make an FPS viable, it is, therefore, necessary
that FPS dealers should sell grocery items along with PDS food grain
items. The condition should be that in the Grocery / Kirana shop, the
sale should only be of non PDS commodities. The Committee feels that
the condition should be put in the licence that FPS owner must have a
running Kirana / Grocery shop. In case of default or non compliance
with the condition, the FPS licence should be revoked.
5.10
The FPS licence is to be granted to a person having a Kirana/Grocery
shop and belonging to the particular locality or has sufficient means to
run a Kirana/Grocery shop along with FPS food grains. The Committee
is of the view, therefore, the stand alone FPS is not feasible.
5.11
Conclusions / Recommendations
1. Increase in commission will put an unnecessary burden on the State
exchequer or on the consumer if it is passed on to the consumers. It
should rather be the condition of the license that FPS owner must run
grocery / kirana shop. His inaction to do so should entail cancellation of
license to run FPS. The authorization of FPS should be given to grocery /
kirana shop in that area itself and it should also be seen that owner
himself resides in that area. The FPS dealers were also of the opinion that
other PDS commodities such as rice and dal should be supplied and
allowed to be sold in order to increase the income. A stand alone FPS
should not be allowed as it is an inherently unworkable model and leads to
malpractices. A system needs to be developed where general stores are
given licences to sell PDS grains. There can be a restriction on sale of non
PDS wheat and rice at such shops. For this FPS can be made the supply
units for goods produced
and marketed by public and cooperative
agencies like Khaadi and Village Industries, cooperative marketing
federation and can also be allowed to keep products by women self help
groups like pickles, jams dry masala etc.
2. There has been a general suggestion that the commission of the fair price
shops should be increased to approx 2.5% to 10%. However, the
Committee reiterates its stand which it stated in its Delhi report that in
order to improve the viability of fair price shop, the consumers should not
be burdened and also no additional burden should be there on the
government.
3. It was observed by the Committee that some FPS dealers have very few
beneficiaries attached to their shops while other have a large number of
beneficiaries. Number of ration cards attached to shop has a direct
bearing on the income of FPS. There have been a number of demands
that each FPS should have sufficient number of ration cards attached to it.
Thus, there should be rationalization of cards for each FPS. There is a
need for rationalization of the number of beneficiaries attached to the FPS
to make the shops financially viable.
4. Efficient retailing would require pre-conditions such as experience and
ability to undertake certain investment and sustain an adequate return.
FPS licences should be granted to people/ groups who have adequate
liquidity of fund. Integrity and rapport of person in the local area are other
aspects to be considered. Pattern of ownership of FPS can have important
bearing on their viability. Self help groups and Cooperatives can be given
priority for granting licences to rationalize the cost structure of FPS.
CHAPTER 6
IDENTIFICATION OF BPL BENEFICIARIES
6.1
Till 1992, the PDS was a general entitlement scheme for all consumers,
without specific targets. The Revamped Public Distributed System (RPDS)
was launched in 1992 in 1775 blocks in tribal, hill and drought prone
areas. PDS as it stood earlier, had been widely criticized for its failure to
serve the population Below the Poverty Line (BPL), its urban bias, limited
coverage in the States with high concentration of the rural poor and lack
of transparent and accountable arrangements for delivery of ration.
6.2
In June 1997, the Government of India launched the Targeted Public
Distribution System (TPDS) with focus on the poor.
Under the TPDS,
States are required to formulate and implement foolproof arrangements
for identification of the poor for delivery of food grains and for its
distribution in a transparent and accountable manner at the FPS level.
6.3
The scheme, when introduced, was intended to benefit about 6 crore poor
families for whom a quantity of about 72 lakh tonnes of food grains was
earmarked annually. The identification of the poor under the scheme is
done by the States as per State-wise poverty estimates of the Planning
Commission for 1993-94 based on the methodology of the “Expert Group
on estimation of proportion and number of poor” chaired by Late Prof.
Lakdawala. The allocation of food grains to the States/UTs was made on
the basis of average consumption in the past i.e. average annual off-take
of food grains under the PDS during the past ten years at the time of
introduction of TPDS.
6.4
The quantum of food grains in excess of the requirement of BPL families
was provided to the States as transitory allocation for which a quantum of
103 lakh tonnes of food grains was earmarked annually. Over and above
the TPDS allocation, additional allocation to States was also given. The
transitory allocation was intended for continuation of benefit of subsidized
food grains to the population Above the Poverty Line (APL) as any sudden
withdrawal of benefits existing under PDS from them was not considered
desirable. The transitory allocation was issued at prices, which were
subsidized but were higher than the prices for the BPL quota of food
grains.
6.5
Keeping in view the consensus on increasing the allocation of food grains
to BPL families, and to better target the food subsidy, Government of
India increased the allocation to BPL families from 10 kg. to 20 kg of food
grains per family per month at 50% of the economic cost and allocation to
APL families at economic cost with effect from. 01.04.2000.
The
allocation of APL families was retained at the same level as at the time of
introduction of TPDS but the Central Issue Prices (CIP) for APL were fixed
at 100% of economic cost from that date so that the entire consumer
subsidy could be directed to the benefit of the BPL population.
6.6
The number of BPL families has been increased with effect from.
01.12.2000 by shifting the base to the population projections of the
Registrar General as on 1.3.2000 instead of the earlier population
projections of 1995. With this increase the total number of BPL families is
652.03 lakh as against 596.23 lakh families originally estimated when
TPDS was introduced in June 1997. The number of families below poverty
line (BPL+AAY) as per the planning Commission estimates for the State of
Haryana has been fixed at 7.33 Lakhs.
6.7
Clause 3 of the Control Order 2001 provides that the State Governments
shall identify families living Below Poverty Line as per paragraph 1 of the
Annexe to this Order. Para (1) of the Annexe to the Control Order, 2001
provides Guidelines for the purpose of identification of families living
below the poverty line (BPL) including the Antyodaya families. It provides
that the State Government shall formulate guidelines for the purposes of
identification of families living Below Poverty Line (BPL) including the
Antyodaya families as per the estimates adopted by the Central
Government.
Care shall be taken to ensure that the families so far
identified are really poor. Exercise of identification of BPL and Antyodaya
families, wherever it has not been done already to be completed within
three months of the issuance of the Control Order, 2001.
6.8
The guidelines for implementing the TPDS issued by the Central
Government provide:-
(i)
Identification of beneficiaries of the Targeted Public Distribution System
(TPDS) namely the population Below Poverty Line (BPL) and issue of food
grains at specially subsidized rates are the most important features of the
TPDS. To work out the population Below Poverty Line (BPL) it is proposed
to adopt the provisional estimates arrived at by the Planning Commission
for the year 1993-94 adopting the methodology of the expert group on
estimation of proportion and number of poor headed by Prof. D.T.
Lakdawala.
(ii)
According to the
official methodology, the number and percentage of
Below Poverty Line population for 1993-94 works out to 14.98 crores
persons and 16.82% respectively. As per the Expert Group methodology
this works out to 32.03 crores and 35.97%.
The Expert Group
methodology according to the Deputy Chairman, Planning Commission
gives “poverty estimates closer to ground reality” and as such it is
proposed to adopt them for the Targeted PDS.
6.9
While these estimates give the number of persons and percentage of BPL
population at State Level, identification at the micro level of the
population Below Poverty Line can be done as indicated below :-
i)
The quinquennial surveys made by the Ministry of Rural Areas and
Employment for Implementation of IRDP, etc. on household living Below
Poverty Line can be a basis.
However, the overall number identified
should be limited within the population Below Poverty Line as fixed by the
Union Planning Commission adopting the methodology of the Expert
Group headed by Late Prof. Lakdawala.
ii)
Gram Panchayats and Gram Sabhas should be involved in the initial
identification of eligible families.
iii)
Final identification should be made after verification of doubtful cases.
iv)
As regards urban population, slum dwellers will generally qualify for the
Below Poverty Line. Applications, if any, received from non-slum areas
should be verified to identify eligible beneficiaries.
v)
The thrust will be to include only the really poor and vulnerable sections
of the society such as landless agricultural labourers, marginal farmers,
rural artisans / craftsmen such as potters, tappers, weavers, blacksmiths,
carpenters, etc. in rural areas and slum dwellers and persons earning their
livelihood on a daily basis in the informal sector like porters, coolies,
rickshaw pullers and hand-cart pullers, fruit and flower sellers on the
payment etc. in urban areas.
vi)
The above criterion is indicated only by way of illustration and is not an
exhaustive list of those who could be brought within the ambit of the
Below Poverty Line.
The total number identified, however, should be
within the limit of Below Poverty Line population indicated by the Planning
Commission.
6.10
The perusal of these guidelines would show that the Survey made by the
Rural Development Department of the State could be a basis but the
overall number of BPL identified by the States had to be limited within the
limits prescribed for BPL by the Union Planning Commission adopting the
methodology of the Expert Group headed by Late Prof. Lakdawala.
6.11
The State of Haryana has through the survey of 2007 determined the BPL
and AAY beneficiaries on a 13 point scale. The survey was conducted by
the rural Development and Urban Development Departments. Since the
number of BPL families found in the survey was more than the estimates
of the Planning Commission, the State decided to treat 3.83 lakh families
as ‘State BPL’. By an Order dated 04.09.2008 it was decided that the
State will collect the APL and BPL allocation and distribute it amongst the
Central BPL and State BPL equally at 35Kg.per month per ration card. The
difference in cost between the APL wheat and State BPL wheat will be
borne by the State. The quota of the BPL has since been reduced to 33
Kg. per family per month. BPL card holders are given wheat @ Rs.4.84
per Kg. AAY families are being distributed 35Kg. wheat per month @
Rs.2.10 per Kg.
6.12
The concept of ‘State BPL’ is in consonance with the recommendations of
this Committee in its Delhi report where it had been recommended that
APL be abolished and if the Hon’ble Court is of the view that it may not be
possible to abolish APL category altogether, it may consider limiting APL
category to households whose annual income is Rs. One Lakh. The
category may be called Marginally Above Poverty Line (MAPL). This limit
may however, be revised as and when required on a rational basis by the
government.
6.13
There was a general complaint in all the public meetings during the visit
of the Committee to various Districts of the State, and also while the
Committee visited the villages to meet the beneficiaries that the BPL
survey had not been conducted properly. Many deserving families had
been left out from the BPL list and many well to do families had obtained
BPL or even AAY cards. It was alleged that the survey teams did not visit
the consumers instead they met the Sarpanch and made the BPL lists
under political influence. The Committee is of the view that though some
of these complaints may be motivated, it is necessary for the State
Government to have a periodical check of ration cards and this should be
continuous process as provided in Para 2 of the Annex to The Public
Distribution System (Control) Order, 2001.
6.14
The Committee is of the opinion that some independent agency who has
experience in this field should be entrusted with the task of identification
of BPL families. This wrong identification / inclusion / exclusion errors has
been found by the Committee in many of the States visited. Therefore, it
is suggested that Registrar General of India (RGI) which is entrusted with
the task of Census after every 10 years should be given this task in all the
States of the union. It is hoped that the survey / identification by such an
organization will be free of errors and without any extraneous
considerations rather on merit and only the deserving families will be
included in the BPL category.
CHAPTER 7
COMPUTERISATION
7.1
The Public Distribution System (Control) Order, 2001 provides that the
State Government shall ensure monitoring of the functions of the Public
Distribution System (PDS) at the Fair Price Shop (FPS) level through the
computer network of the National Informatics Center (NIC) installed in the
District NIC centers. For this purpose computerized codes shall be issued
to each FPS in the district.2
2
Para 6(6) of the Annex to the Public Distribution System (Control) Order, 2001
7.2
The
Committee
has
already
submitted
a
detailed
report
on
Computerisation of PDS which may be read as part of this report. The
present chapter deals specifically with computerisation of PDS in the State
of Haryana. The State of Haryana and the Union Territory of Chandigarh
have been selected for the pilot projects on computerisation of the Public
Distribution System. The Committee invited the team of officers from the
State, officers from HARTRON responsible for implementation of the
project and the representative of Expedien_E-Solutions who gave a
presentation of the proposed system. The Committee obtained a copy of
the Detailed Project Report (DPR) and visited the PR Center at Ambala
where the work on the computerisation project is in progress.
7.3
The proposal is to issue smart cards to each level of the distribution chain,
i.e. the transporter, the FPS dealer and the consumer. In Haryana the
agency which is performing the task of transportation of food grains from
the godown to the FPS dealer is the CONFED.
7.4
In the proposed system, when the CONFED transporters take delivery
from the godown, Depot Holder wise distribution information (i.e. the FPS
details and quantity allotted) are loaded on the transporter’s smart card
using the STT and 2 receipts are generated one for the transporter and
the other is the copy for the godown in charge. In this system only data
entry is made and the weight of the stock loaded on the truck is not cross
checked using an electronic weigh bridge in conjunction with the smart
card. In order to eliminate human intervention to the maximum extent
electronic weigh bridges should be used at all whole sale storage points
and the stock loaded in the trucks should be checked using the electronic
weigh bridge in conjunction with the smart card.
7.5
When the truck reaches the FPS to deliver the stock, the CONFED
transporter inserts his card in the Depot Holder’s STT. Stock gets
automatically transferred in the Depot Holder’s terminal, the transaction
report gets stored in the Transporters card and 2 receipt’s are generated,
i.e. one for the FPS dealer and the other for the transporter.
7.6
The consumer comes to the FPS for purchase of food grains, inserts his
smart card in the STT, place his finger on the terminal for bio-metric
verification. After the details are verified, the entitlement and price
payable are displayed on the terminal. The FPS dealer thereafter
completes the transaction by issuing the desired quantity to the consumer
and the details of the transaction are loaded on the smart card and a
paper receipt is simultaneously issued to the consumer. The system does
not provide for authentication by the consumer, prior to the completion of
the transaction as confirmation that the correct quantity of the stock has
been issued to him.
7.7
The system should verify the card of the consumer on its being inserted in
the STT and there should be no need to verify the biometric details at this
stage. It is only after the desired quantity is entered by the FPS dealer in
the STT and the same is received by the consumer, should the consumer
be required to authenticate the transaction by placing his finger on the
designated spot on the STT, thereby confirming that the transaction has
been completed to his satisfaction. If he does not do so it would signify
that there is some deficiency in the transaction and the transaction would
not be completed and recorded on the STT or the smart card.
7.8
The Committee was informed that first phase of this project has been
completed in most of the districts and now second phase is being
implemented in seven districts.
7.9
First Phase of Computerization:
During first phase of computerization plan of the department, a network
of 40 computer systems at HQ and LAN of 3 computer systems was
established in each district. Training was imparted on Office Automation
and Internet to 240 officials ( 10 officials of each district and 50 officials of
Head Quarter).
7.10 Second Phase of Computerization:
At the time of the visit of the Committee to the PR Center at Ambala D-1
forms which are the original application forms for obtaining a ration card
were being scanned and images of the same were being fed into the
computers. The work was being implemented by SIFY. The Committee
was informed that after all the D-1 forms are scanned the family details of
each form would be fed in the system in the forms designed for this
purpose. Tender process for appointing the contractor for acquiring the
necessary hardware and implementation of the smart card project has
started. Once the contractor is appointed and the hardware is in place the
software modules prepared by the NIC will be tested and implemented.
7.11 Integrated information System for Foodgrains Management
(IISFM)
i. Government of India has made a project namely "Integrated information
System for Foodgrains Management" (IISFM) for implementation of the
project in Haryana through Food Corporation of India. The Project is
being implemented through NIC by Government of India and FCI. The
project covering the FCI owned depots and frequently hired depots of the
CWC and SWCs to get the complete picture of the stocks in the Central
Pool, the data pertaining to the stocks held by the State agencies on
behalf of the FCI and the stocks in the decentralized procurement States.
ii. FCFS had signed the MOU with GM, FCI, Haryana Region on 22.5.2006 for
proper implementation of the project. State Government has identified
172 depots for implementation of the project out of which Food
Department has identified 57 locations. FCI has provided the computer
hardware and training to 232 employees of identified locations in the
State from
IISFM Project Funds. FCI has also customized the IISFM
Application software as per requirement of all the procurement agencies
on instructions to all the agencies and DFSC have been issued vide which
they were requested to start the data feeding work in the said software
up to district wise immediately. It was however, observed that the
agencies other than FCI were not implementing this programme and have
not even started feeding the data.
iii. It is stated that in Haryana about 53 lakh people will be issued the smart
card.
Central Government have recently
constituted a Unique
Identification Authority of India (UIDAI). The mandate of UIDAI is to
issue unique ID number to every resident of the country. It is stated that
if PDS authorities, in their domain make ration cards on the basis of UID
number of the ration card holders and their family members as
mandatory, they can clear up their data base of bogus ration cards.
UIDAI would re commend that all State Governments should start working
and actively participate with the UIDAI so as to clean up their data bases
and improve their delivery system. In answer to a question that about
1.5. crores bogus ration card holders were milking the PDS and could UID
help such situations, Mr. Nandan Nilekani, Chairman, UIDAI, replied “UID
by itself will not solve the issue. The application of UID in a given context
will solve it. If a state decides to have UID in all its ration cards, then
somebody who has a ration card with the UID cannot come again on
another ration card with another UID. So UID will ensure there are no
duplicates. We are providing a capability to agencies to re-engineer their
public service deliveries but the decision to re-engineer has to be theirs.”
CHAPTER 8
ENFORCEMENT, VIGILANCE AND COMPLAINT MECHANISM
8.1
Detailed instructions have been issued by the State Government vide
letter dated 21.09.2005 with regard to enforcement, vigilance and
complaints mechanism of PDS in the State. However, the Committee
found that the enforcement, vigilance and complaint mechanism of in
State is non-existant. The Vigilance Committees were only issuing monthly
Utilization Certificates and that too without actually verifying distribution.
8.2
There is no separate unit in the police for enforcement of the provisions of
the Essential Commodities Act, 1955. Some cases are detected by
department in routine or in special drives. The following table shows the
number of cases registered and the action taken during the last 4 years
2006-07
2007-08
2008-09
25
54
39
2009-10
(Upto 6/09)
4
Persons arrested
13
36
19
1
No. of licencees cancelled
405
628
288
68
No. of depot holders whose
1999
2094
1654
260
No. of cases registered under
E.C.Act
security forfeited
Amount of security forfeited
8.3
12,56,800 14,41,600 10,57,950
2,05,250
The Committee observed that there is no system of monitoring and
vigilance of the PDS in the State, even the rules laid down in this regard
are not being implemented and followed. This is particularly so with
regard to inspections to be conducted by various officials at different
stages and also with regard to the functioning of the Vigilance and
Monitoring Committees.
8.4
The State has set up Vigilance Committees only at the FPS level. The
functions of these Committees are specified in the Letter No. F: G -12005/17350, dated 21.09.2005 and also in the Haryana Public Distribution
System (Licensing and Control) Order, 2009. However, the Vigilance
Committees are only issuing Utilization Certificates to the FPS to enable
them to get the allocation for the next month. It was found that the
certificates are signed by the members of the committees without
verifying the records of the FPS in routine.
8.5
The State should set up Vigilance Committees at State and District levels
also to keep an eye on the Public Distribution System. The State level
Vigilance Committee should be headed by the Commissioner Food and
Supply and the District Level vigilance committee should be headed by the
Deputy Commissioner. Date, Place and time for the meeting of the
Committees should be fixed in advance. For example the State Level
Vigilance Committee should meet once in two months on the first Monday
of January, March, May and so on, at the office of the Commissioner Food
and supply at 11.00 AM. The District Level vigilance Committee can meet
at the office of the Deputy Commissioner on the first Wednesday at 11.00
AM.
8.6
Inspections by FCI Officials
The Government of India issued instructions to FCI vide letter dated 24 th
October 2007 with regard to putting in place a system of regular
inspection of FCI and State Government/Authorized wholesale godowns.
In pursuance to that FCI issued directions to all Regional General
Managers vide Letter dated 31st October 2007 to inspect State
Government /Authorized wholesale godowns and to submit detailed report
to the Headquarter and to State Government. Committee was informed
that no such inspection has been conducted by the FCI officials in State.
8.7
Legal Metrology Department
8.7.1 Legal Metrology Department of the State is responsible for certifying the
weights and scales of all establishments. This includes the entities
involved in the PDS.
8.7.2 The FPS dealers are required to take annual certification from the Weights
and Measures Department after getting their weighing machine checked.
8.7.3 The FPSs are supposed to take their weighing instruments including the
weights and the scales to the office of the Legal Metrology Department
which stamps the instruments and gives receipt of the amount paid by the
dealer as certification fee.
8.7.4 However there is no coordination between the Legal Metrology
Department
and
the
PDS
enforcement
agencies.
The
Metrology
department does not conduct regular or random inspections of the FPSs,
to ensure that the weights and scales used therein are correctly aligned.
Since there are no inspections, the question of initiating action against
errant establishments also does not arise. Thus the role of the Legal
Metrology department is limited to giving annual certification.
8.8
No system can be implemented properly unless there is a proper system
of enforcement of the rules and regulations. An effective system of
enforcement of the punitive and penal procedures of the Essential
Commodities Act and the Control Orders has to be set up by each state to
ensure compliance with their provisions.
8.9
There should be a complaint mechanism and the State should set up a 24
hours toll free helpline where a beneficiary can lodge his complaint. The
toll free number should be printed or stamped on the Ration Card. There
should be a system of the follow up of the complaint. A post of
Ombudsman/Regulator should be set up as suggested by this Committee
in its Delhi Report. The Ombudsman/Regulator should look into the
complaints received through the helpline and take appropriate action
against the defaulting licencees and the officials concerned.
8.10 A Public hearing for PDS on the lines of the Bijlee Lok Adalat must be
convened at a designated place, time and day every 2 to 3 months where
general public can seek to resolve outstanding issues pertaining to the
PDS. These may include those relating to their category / entitlements,
non-issuance of the cards, bifurcation of cards, wrong inclusion of APL,
complaints regarding under-weighment etc.
PDS Lok Adalat so
constituted should be presided over by District Judge or a Judicial Officer
nominated by him not less than the rank of Additional Judge and should
include the Collector of the District and the District Supply Officer. A
system of accountability
must be
put in
place
to ensure
the
implementation of decisions taken during these hearings.
8.11
Malpractices in the PDS continue because of lack of effective enforcement
system. The Hon’ble Supreme Court has issued the following directions to
facilitate the supply of food grains1.
a.
licencees, who
Do not keep their shops open throughout the month during the
stipulated time.
b.
fail to provide grain to BPL families strictly at BPL rates and no
higher
c.
to keep the cards of BPL house holds with them
d.
make false entries in the BPL cards,
e.
engage in black marketing or siphoning away of grains to the open
market and hand over such ration shops to such other
person/organizations,
Shall make themselves liable for cancellation of their licences. The
concerned authorities /functionaries would not show any laxity on
the subject.
The State Government shall permit the BPL household to buy the
ration in installments.
2.
Wide publicity shall be given so as to make BPL families aware of
their entitlement of food grains.
8.12
It is therefore necessary that the special squads are set up by the State
consisting of persons draw from the administration and the police and
should be placed directly under the District Magistrate. These squads
should be responsible for launching criminal prosecutions and also for
recommending departmental action for suspension or cancellation of
licence, or imposing penalties No action has been taken against any
official though it is admitted that no diversion of food grain is possible
without the connivance of the officials of the department. It is also
important that these squads also have the powers to recommend action
against officials in whose jurisdiction violations are detected or who is
found to be involved in diversion of food grain. The Committee is of the
opinion that there should be dedicated Special squads in every District
for enforcement of the penal provisions of the Essential Commodities
Act, 1955. The Committee has suggested Zero Tolerance in the matter
of enforcement in the Public Distribution System. Similarly a special
squad should also be created at the State level for surprise checks
whenever there is complaint requiring such action. Prosecutors should
be
specially
trained
for
conducting
cases
under
the
Essential
Commodities Act.
8.13
Special attention is also required to ensure speedy disposal of cases filed
in courts. Special Courts may have to be set up in consultation with the
High Court to ensure speedy disposal.
CHAPTER 9
DISTRIBUTION OF WHEAT FLOUR/ATTA TO PDS
BENEFICIARIES
9.1
Government of India announced Targeted Public Distribution System in
May, 1997. The TPDS was implemented in the State in the month of
May, 1997. Under this scheme 10kg. wheat per family per month was
distributed as per policy of the Govt. of India. Wheat was distributed
from May, 1997 to June, 1998.
9.2
The Committee was informed that in the meeting of District Food and
Supplies Controllers held on 16.06.1998, it was decided that whole meal
atta may be distributed amongst the ration card holders instead
9.3
of wheat.
Due to the complaints of whole meal atta in January, 2002 it was
decided that whole meal atta and wheat in grain form may be
distributed as per the choice of consumers.
9.4
A letter dated 27.06.2003 was received from the Govt. of India in which it
was intimated that there are too much complaints about the quality of the
atta. Govt. of India intimated that when there is no provision to distribute
atta under TPDS why the State Govt. is distributing atta instead of wheat
in grain form. The matter was discussed and it was decided to continue
with the present policy of need based supply of atta or wheat which ever
is required by the consumers.
9.5
It was informed to the Committee that in the meeting held on 28.03.2005
under the Chairmanship of the then Deputy Chief Minister Haryana it was
decided that suggestions may be called from the District Officers in regard
to distribution of whole meal atta/ wheat. As per the suggestions of the
District Officers of the Department it was decided on 31.03.2005 that only
wheat be distributed in grain form under TPDS
instead of atta. From
01.04.2005 wheat is being distributed under TPDS in grain form.
9.6
The Committee was informed that State Government had started
distribution of atta instead of wheat in certain areas and that Scheme was
subsequently withdrawn. The Committee could not find any substantial
reasons first for supply of atta and then subsequently the withdrawal of
scheme
9.7
During Public Hearings people supported supply of atta instead of wheat
in the urban areas. This did not find favour with the FPS owners objection
to the supply of atta was basically due to less shelf life. The atta is
presently supplied basically in the State of Gujrat , Rajasthan and Union
Territory of Chandigarh.
9.8
The Government of India decided vide letter dated 17.01.2008 to adopt a
policy of encouraging distribution of wheat flour to ration card holders of
AAY, BPL and APL categories under the TPDS. The State Governments
should take up distribution of wheat flour through the network of fair price
shops to AAY, BPL and APL categories of card holders under the TPDS,
subject to the following terms and conditions:(a)
Distribution of wheat products other than wheat flour such as suji,
maida, rawa etc. will not be permissible from the allocations of
wheat made by the Deptt. of Food and Public Distribution, Govt. of
India under the TPDS.
(b)
The wheat flour to be distributed to ration card holders shall
conform to all quality standards/ specifications of whole wheat atta
prescribed under the Prevention of Food Adulteration Rules, 1955.
The State/UT Governments shall put in place adequate safeguards
to ensure that the quality of wheat flour issued to card holders is as
per the standards/specifications prescribed under PFA Rules, 1955.
(c)
From commencement of this policy and thereafter in the beginning
of every financial year, State/UT Govts. should assess the
requirement of wheat flour in their State/UT based on options, if
any, to be exercised by the ration card holders under the TPDS.
However, this requirement of wheat and wheat flour would be
limited to the monthly allocation of wheat to the concerned
State/UT under the TPDS.
(d)
The State/ UT Governments should distribute wheat flour in
quantities equal to about half of the monthly allocations of wheat
to ration card holders under the TPDS from March, 2008 onwards.
This should be done particularly in those areas where evaluation
studies have shown high levels of diversion/leakages of foodgrains
under the TPDS and where it would be more convenient for the
ration card holder families to get delivery of the wheat flour.
(e)
The wheat flour should be properly packaged in suitable quantities.
(f)
The ratio of whole wheat flour to whole wheat should be fixed by
the State/ UT Govts. appropriately in such a way as maximum
quantity of wheat flour is obtained from the whole wheat to be
issued to flour mills for this purpose.
(g)
Expenses on milling/ grinding of whole wheat, packaging and
transportation of whole wheat to mills and of wheat flour from the
mills to distribution centres, etc. should be borne by the State/UT
Govts. or they should be adjusted suitably in the quantity/ issue
price of wheat flour in such a manner as no additional burden in
passed over to the targeted AAY, BPL and APL ration card holder
families.
(h)
The State/ UT Govts. should ensure that no unreasonable monetary
advantage is allowed to flour mills in the process.
(i)
For distribution of wheat flour instead of whole wheat to eligible
ration card holders under the TPDS, it will not be necessary for
State/UT Govts. to obtain specific permission or prior concurrence
of the Govt. of India for this purpose. However, the quantum of
wheat flour distributed under the TPDS will be reported every
month to GOI.
(j)
The quantity of unlifted wheat flour/ atta from fair price shops, if
any, during a month may not be disposed of in the open market
but carried forward to the next month for distribution subject to it
retaining the required quality and the wheat allocation to
RFMs/Chakki mills for conversion into wheat flour for the next
month will be proportionately reduced by the State/UT Govt.
authorities.
(k)
The State/UT Governments or their Agencies will not make any
profit in implementation of the scheme.
(l)
The distribution of wheat flour / atta through PDS outlets will be
made as per provisions of the PDS (Control) Order, 2001 and any
violation of the Order will result in imposition of penalties under the
EC Act, 1955.
(m)
Based on assessment of the State/ UT Governments, distribution of
fortified wheat flour may also be taken up in selected areas or for
selected categories of ration card holders or for all categories of the
ration card holders, for improving nutritional standard of the
families covered.
(n)
Distribution of wheat flour to the targeted families under the TPDS
as per the terms and conditions specified above shall be sole
responsibility of the concerned State/UT Governments. The State/
UT Governments shall ensure proper implementation and regular
monitoring of the scheme. It shall be ensured that there is no
diversion of TPDS wheat flour to the open market.
9.9
Since shelf life of wheat flour (Atta) is only 45 days it has to be
ensured that the product is distributed and consumed within the
stipulated period of shelf life so as to avoid product deterioration. The
Committee would suggest the following steps:1.
There should be a dedicated flour mill for grinding PDS wheat. In case
that is not immediately possible, it should be ensured that the day on
which the PDS wheat is ground no other wheat will be ground in that
flour mill.
2.
Quality of the flour manufactured has to be strictly monitored. Grinding
should be perfect and flour should be of fine consistency;
3.
There should be strict vigilance to ensure that no other wheat is mixed
up with PDS wheat;
4.
Grinding of PDS wheat should be in a flour mill where there is no
human intervention except at the time of pouring the wheat grain in
the machine and at the time of sealing the atta in right quantity in the
bags as it comes out. The process may include fortification of wheat
with proper folic acid, iron and other nutrients.
5.
There should be strict adherence to the time schedule to ensure that
the atta is consumed within the prescribed period and its quality is
maintained. It is necessary that t he atta reaches the FPS within 5
days of its grinding. A period of 30 days must be given to the
beneficiary for consumption of atta from the date he lifts the atta from
the FPS as he is given ration for one month. Thus, atta must be
distributed by the FPS to all the beneficiaries within 15 days of
grinding. In case, some bags are left undelivered in the FPS after 30
days of grinding, steps should be to remove the undelivered bags from
the FPS.
6.
The date of grinding of the wheat and the date on the HDPE bag
should be same and the bags should also contain all other relevant
particulars like the expiry date, batch no., name of the mill, etc.
7.
The provisions of Prevention of Food Adulteration Act and Packaging
and Measurement Act should be strictly observed. It is must be
understood that any adulterator can cause great harm to the health of
the public and the responsibility in the case will have to be fixed.
CHAPTER 10
RECOMMENDATIONS
The Committee visited the State Headquarters in Chandigarh and also some
Districts – Ambala, Kurukshetra, Rohtak, Faridabad, Mewat, Palwal, Bhiwani and
Hissar. During the visit the Committee discussed various issues concerning PDS
with the State Government officials, District officials, consumers, Fair Price Shop
dealers, NGOs, SHGs, and other stake holders to find out the problems in the
State.
The details about the visit have been discussed in different chapters.
Following are some of the suggestions / recommendations for improvement of
PDS in the State:1.
There was a general complaint in all the public meetings, that the
Committee held, and also while the Committee visited the villages to meet
the consumers that the BPL survey had not been conducted properly.
Many deserving families had been left out from the BPL list and many well
to do families had obtained BPL or even AAY cards. It was alleged that the
survey teams did not visit the consumers instead they met the Sarpanch
and made the BPL lists under political influence. The Committee feels that
though some of these complaints may be motivated, it is necessary for
the State Government to have a periodical checking of ration cards and
this should be continuous process as provided in Para 2 of the Annex to
The Public Distribution System (Control) Order, 2001.
2.
The Committee came across many cases of exclusion / inclusion errors.
To deal with the situation fresh survey for identification of BPL families
may be undertaken. Central Government also accepts
for re-identification of BPL families is needed.
that fresh survey
The Committee feels that
the identification of BPL families is very important aspect to address the
food security issue as during the visit of the Committee in many States, it
was generally seen that the deserving people are not having the ration
cards rather those who are well to do and prosperous are included in the
BPL category. To make the system of Public Distribution purposeful, it is
utmost necessary that the survey should be conducted by an independent
agency which can work without any political interference and the survey is
conducted without any favour or fear.
The Committee feels that the
Registrar General of India may be involved for this purpose since they
have the necessary experience in such work and also be perceived as a
neutral agency.
3.
Under the existing system food grain should reach the Fair Price Shops by
10th of the month. Some times the delivery is delayed even till the 15 th.
The State Government should ensure that the PDS food grain reaches the
Fair Price Shops before the 1st of every month so that distribution can
start at the beginning of the month and continue throughout the month.
The Fair Price Shops should remain open on all working days during the
specified hours. The consumer should be allowed to draw ration in
installments.
4. The ration card has become a valuable document. It serves as an identity
card. It is required for availing benefits under various other schemes of
the government. This is in gross violation of the provisions of the Public
Distribution System (Control) Order, 2001 issued by the Central
Government. Ration card should be de-linked from all other schemes and
steps should be taken to ensure that it is not used as an identity card. The
Committee also further suggests that in place of ration card a food
entitlement card may be issued which can be used only for food supply
under Public Distribution System.
The Committee also feels that it is
appropriate if the name of TPDS is changed to ‘FOOD FOR POOR
SCHEME’.
5.
Electronic weighing systems should be installed at the godowns of all the
agencies storing PDS grain. Delivery should be made to the representative
of CONFED after 100% weighment.
6.
Joint sampling of grain is not taking place at all. The Committee found
that none of the FPSs, visited by it had valid samples. Thus, there is no
check on the quality of grain which is sold at the FPSs. Joint sampling of
food grain should be done at the time of lifting from the godowns of the
agencies and samples should be displayed at the Fair Price Shops.
7.
In order to ensure proper quality and quantity food grain can be packed in
smaller packing of appropriate sizes in non pilferable, tamper proof bags
like HDPE bags.
8.
It is no secret that an FPS dealer can not honestly earn enough to sustain
himself and his family. To avoid running into losses he indulges in black
marketing. Study of the Committee shows that merely increasing the
commission will not result in making the FPS a profitable or viable
proposition. The Committee is of the view that the concept of stand alone
FPS should be changed. It should be in the condition of FPS licence that
he runs a kirana/ grocery shop. He should be permitted to sell all items
except PDS rice and wheat. This way the FPS owner can earn profit and
the shop will remain open through out the month. Moreover attached
number of cards means a set number of customers in any case and it will
not be necessary to put any condition in the licence to keep the shop
open during particular hours or to observe a particular day as a holiday.
Programme Evaluation Organisation under Planning Commission in its
evaluation Report on TPDS defined Viability of FPS to mean an annual
return of 12% or more on the working capital.3 However, the commission
rate of the FPS dealer is very low and any increase in the commission
means extra burden either on the beneficiary or on the Government.
Therefore, the FPS dealership should be given to the kirana shop owner to
make the shop financially viable.
The Committee also feels that the
income equivalent to 12% annual return on the investment as observed
by the Planning Commission in not enough to servive or make the FPS
viable. For example, the investment needed by an FPS dealer with 750
cards (200 BPL + AAY and 550 APL) is only about Rs. 80,000/- . The
annual return at 12% on this amount comes to only Rs. 9,600/- i.e. Rs.
8,00/- per month.
9. In the clause (4) of Haryana Public Distribution System (Licensing and
Control) Order, 2009 ‘family’ has been defined as ‘including all those
persons whose names have been entered in the ration card of a fair price
shop owner or who are dependent upon him’. This definition of the
‘Family’ leads to corruption as it enables an influential family to have
several FPS licences. The Government should consider redefining the
‘Family’
to
include
son/daughter/brother/sister/
daughter
in
law/
wife/widow of a brother etc to remove the anomaly.
PEO, Performance Evaluation of Targeted Public Distribution System-2005, (at
pg vi and 50).
3
10.
It is a well documented fact that the FPS owner is in business for the
purpose of diversion or for political influence or other influence that he
can wield by being an FPS retailer. There is massive corruption woven
around it where the participants are the shop keeper, officials of the
Department / Corporation, transporters and last but not the least the
politicians. The Committee is of the view that the reservation for various
categories provided in the Haryana Public Distribution (Licensing and
Control) Order, 2009 appears rather unnecessary. FPS licences should be
allotted to persons of the locality who are already running kirana/ grocery
shop or have the capability to do so.
11.
There is no separate system of implementation of enforcement and
vigilance in the PDS as currently there is no separate cell for the purposes
of monitoring PDS. It is recommended that a separate division of
enforcement and vigilance of PDS be started in the State in order to deal
with the specific problems of PDS.
12.
The State should set up Vigilance Committees at the State and District
levels also to keep an eye on the Public Distribution System. Date, Place
and time for the meeting of the committees should be fixed in advance.
Vigilance Committees at various levels be strengthened by including the
NGOs, Self Help Group, Consumer Organisations and the educated youth
in the Vigilance Committee at various levels. The meetings of the Vigilance
Committees must be convened regularly.
The Secretary of the
Department of Food & Supply should be responsible for convening the
meeting at the State level. Similarly Deputy Commissioner should ensure
that the meetings of the Vigilance Committee at District level are held at
regular intervals, at the Fair Price level the responsibility can be given for
convening the meetings regularly to Municipal Councilors of the area for
Urban Areas and Block Development Officer for the FPSs in Rural Areas.
13.
The Village/ FPS level committee should also meet regularly every month.
Minutes of the meetings of the vigilance committees should be recorded.
Follow up action should be verified in the next meeting.
14.
There is no effective and systematic complaint redressal mechanism for
the common people. In the absence of a customized complaint redressal
system, most of the grievances of the common persons go unheard and
unattended, encouraging the corrupt practices by the dealers and the
officials. It is recommended that an effective complaint redressal system
for PDS related grievances be initiated wherein the beneficiaries may
register and also follow up their complaints. Till such time a formal
complaint mechanism is established, it is recommended that the
concerned officials be given strict instructions with regard to responding
to and acting upon the complaints received from the beneficiaries.
15.
There should be a complaint mechanism and the State should set up a 24
hours toll free helpline where a beneficiary can lodge his complaint. The
toll free number should be printed or stamped on the Ration Card. There
should be a system of the follow up of the complaint. A post of
Ombudsman/Regulator should be set up as suggested by this Committee
in its Delhi Report.
The Ombudsman/Regulator should look into the
complaints received through the helpline and take appropriate action
against the defaulting licences and the officials concerned.
16.
The Legal Metrology Department does not play an active role in the
monitoring and enforcement of the PDS. Thus it is recommended the
Legal Metrology Department works in coordination with the PDS
administration. The officials of the Legal Metrology department should
also be made accountable for any act of omission or commission in
fulfilling their duties.
17.
The rate, at which action is taken against the errant FPS dealers and
errant officials, is abysmally low. Thus there is no effective deterrent to
stop malpractice in PDS. It is necessary that there should be special
squads for enforcement of PDS. The squads should be responsible
conducting
raids,
surprise
checks,
conducting
prosecutions,
recommending Departmental action against the officials and taking action
against the defaulting officer under the Essential Commodities Act 1955,
Prevention of Corruption Act, 1988 and Indian Penal Code. PDS operation
should be based on the principle of zero tolerance. Any infraction of the
Rules and Regulations or Instructions should invite strict action not only
against the FPS owner but also the concerned officials.
18.
The Committee feels that awareness is very important for proper
functioning of PDS. To create awareness among the people it must be
ensured by the District administration that a press release is issued at the
beginning of the month indicating the quantity issued to be FPSs,
entitlement of various categories of the beneficiaries, rates of the
commodities to be charged by the FPS dealer and, so that people can
know their rights and entitlements.
19.
To further enlighten the peoples of their rights and entitlements,
pamphlets, posters must be published and widely circulated.
Local TV
channels may also be requested to show all these above mentioned
details on their scrolls to create awareness among the people.
20.
A Public hearing for PDS on the lines of the Lok Adalat ( Bijlee/ telephone/
water) must be convened at a designated place, time and day every 2/3
months where general public can seek to resolve outstanding issues
pertaining to the PDS. These may include those relating to their category
/ entitlements, non-issuance of the cards, bifurcation of cards, wrong
inclusion of APL, complaints regarding under-weighment etc.
PDS Lok
Adalat so constituted should be presided over by District Judge or a
Judicial Officer nominated by him not less than the rank of Additional
Judge and should include the Collector of the District and the District
Supply Officer. A system of accountability must be put in place to ensure
the implementation of decisions taken during these hearings.
21.
The Committee has given a comprehensive report on computerization and
recommends that the same be acted upon. In the report the Committee
has suggested the whole process of computerization of the Public
Distribution System which includes using electronic weighing systems and
integrating the same with automated allocation and delivery systems.
22.
Distribution of essential commodities under the PDS control order as per
ration card be rationalized. Though it is general understood that each
family as per ration card be issued 35 kgs of foodgrain per month. It is
also generally understood that a family consists of five members. The
Committee has come across certain cases where family consist of more
than five members, in such situation the Unit system be introduced.
23.
Though the Committee is not required to go into distribution of kerosene
oil but in various public meetings the corruption in distribution of kerosene
oil has come into notice. There is a general complaint regarding the less
allocation of kerosene oil to APL families which are not using LPG. It was
informed that APL families are given three litre kerosene oil per month
while the allocation to BPL and AAY families is 9 litre per month. It was
observed by the Committee that in Haryana generally kerosene oil is not
used for cooking purpose in rural areas.
Rather people use the kerosene
oil for lighting purposes as there is no 24 hour electricity supply is
available. In urban areas also generally people cook on LPG and kerosene
oil is used for lighting purposes.
However, poor people and migrant
labour etc. who lives in the outskirts of the city use kerosene oil to some
extent for cooking purposes.
Most of the kerosene oil allocated to the
FPSs is diverted in the black market. One of the reason for this black
marketing is non-availability of open sale kerosene oil in the market.
Government should take steps to allow the open sale of kerosene oil at
reasonable price, so that those who are in need of kerosene oil can get
the same in the open market and need not to encourage diversion / black
marketing. Separate licences for open market sale can be issued by the
oil companies once a policy decision is taken by the Government of India.
24.
The Committee feels that there should be some provision of food security
for the migrant labour who come in search of job or work from their
native places temporarily.
They could be registered as temporary
residents and provision should be made for providing PDS food grains etc.
to them also.
25.
The Committee during the visit to the State came across many cases of
damaged foodgrain supplied to the consumers under PDS.
It was
informed by the District Officials that generally the quality is proper
however at some places the grain is damaged because of the nonavailability of storage space with the procurement agencies in Haryana.
They have to store the foodgrains sometimes in the open. Therefore, due
to the non-availability of proper storage space, not only the grain which is
supplied in PDS is of proper quality but also the foodgrain is damaged.
The Committee feels that State Government must take immediate steps
for creating storage space so that the foodgrains is not damaged and the
proper quality is available to the consumer though PDS.
26.
The Committee in its report on Delhi and other States has recommended
abolition of APL category. The Committee found that in
the State of
Haryana no wheat is distributed to the APL card holders.
27.
The Committee is of the view that to began with atta instead of wheat be
distributed to BPL families in urban areas. The distribution of atta also
checks diversion of PDS food grain into black market, however, certain
checks are required considering the self life of atta is 32-45 days.
Committee suggests following measures regarding Atta Distribution:
a)
There should be a dedicated flour mill for grinding PDS wheat. In case that
is not immediately possible, it should be ensured that the day on which
the PDS wheat is ground no other wheat will be ground in that flour mill.
Quality of the flour manufactured has to be strictly monitored. Grinding
should be perfect and flour should be of fine consistency;
b)
There should be strict vigilance to ensure that no other wheat is mixed up
with PDS wheat;
c)
Grinding of PDS wheat should be in a flour mill where there is no human
intervention except at the time of pouring the wheat grain in the machine
and at the time of sealing the atta in right quantity in the bags as it comes
out. The process may include fortification of wheat with proper folic acid,
iron and other nutrients.
d)
There should be strict adherence to the time schedule to ensure that the
atta is consumed within the prescribed period and its quality is maintained.
It is necessary that t he atta reaches the FPS within 5 days of its grinding.
A period of 30 days must be given to the beneficiary for consumption of
atta from the date he lifts the atta from the FPS as he is given ration for
one month. Thus, atta must be distributed by the FPS to all the
beneficiaries within 15 days of grinding. In case, some bags are left
undelivered in the FPS after 30 days of grinding, steps should be to
remove the undelivered bags from the FPS.
e)
The date of grinding of the wheat and the date on the HDPE bag should
be same and the bags should also contain all other relevant particulars like
the expiry date, batch no., name of the mill, etc.
f)
The provisions of Prevention of Food Adulteration Act and Packaging and
Measurement Act should be strictly observed. It is must be understood
that any adulterator can cause great harm to the health of the public and
the responsibility in the case will have to be fixed.
APPENDIX
Issues raised during Public Hearing
Central Vigilance Committee visited the following districts of Haryana Ambala, Kurukshetra, Rohtak, Faridabad, Mewat, Palwal, Bhiwani and
Hissar.During the visit
the Committee discussed various issues with the
different stake holders regarding PDS in
meetings.
the formal as well as informal
The Meetings were attended by FPS dealers, Consumers/card
holders, NGOs, SHGs, Consumer Organisations, Media persons and Women
Organisations. The following are some of the issues raised by different stake
holders in these formal / informal public Meetings
Short weighment by FPS dealers.

Shops are not opened everyday. Timings of shops be fixed and
followed scrupulously.

Viability of FPS is not there.
Commission of FPS needs to be
increased or fixed honorarium / salary be allowed to FPS dealers.

APL category with gas users may also be allowed kerosene.

Rickshaw pullers and other daily wage earners be allowed ration
cards.

Allocation of ration be made unit-wise rather than ration card-wise.

There is complaint of bad quality of food items.

BPL survey be made again to remove exclusion / inclusion errors.

Food articles be packed in small HDPE bags.

Atta be supplied in convenient packing instead of wheat.

Kerosene oil be restricted to 5 litre instead of 9 litre.

Vigilance mechanism is weak which needs to be strengthened.

Social workers be included in the vigilance committee.

Display board should be clear and legible.

Toll free number should be available at District HQs for complaints,
suggestion etc.

No response of officials in case of complaints

Less weighment by FPS dealers.

Overcharging by FPS dealers

Items in PDS should be increased such as edible oil, pulses, salt,
cloth.

Entitlement of these commodities for various categories be
increased.

Transparency and honesty need to be brought out in allotment of
FPSs.

WSHGs be pr eferred in allotment of shops.

Vigilance mechanism needs to be strengthened.

Ration depots are not opened through out the month.

Depot holders be given the dealership of cooking gas also.

LPG users may also be allowed some quantity of kerosene oil.

Ration is not supplied every month rather once in three month.

Fake entries are made in the ration cards by the FPS dealers.

Sugar supply is not regular.

Super Bazars may be opened in Mewat area.

Quality of grain is not proper.

Depot holder keeps the ration card with him or her.

Atleast minimum wages be given to FPS dealers.

Rice should also be provided in PDS.

The survey made in 2007 for identification of BPL families be
implemented immediately.

Really needy / deserving people are not categorized in BPL and
AAY categories.

Wide publicity be given about the entitlements / rates etc.

Social audit may be adopted in PDS.

Enforcement mechanism is week.

Migrant labour be covered in PDS.

Ration be allowed in installments.

Gas cylinders should be supplied through FPSs.

Senior officers of the department are involved in the diversion.

Stringent laws should be there to deal with those found indulged in
diversion and in violation of EC Act and Control orders.

Fast track courts be established to deal with the cases of diversions
of PDS items and violation of the Act.

Provision of summary trial and punishment of the guilty in the
shortest possible time be made by amending the laws.