'Fertiliser subsidy scam under BJP,BSP rule in UP'

New Delhi, May 2: Ahead of the sixth phase of the Uttar Pradesh assembly elections, the Congress Party today sought to put the BJP and the BSP in the dock, alleging a Rs 1,000-crore "fertiliser subsidy scam" under their rule during 1994-2000.

AICC Media Committee Convener and Union Minister Kapil Sibal told mediapersons that fertiliser subsidy scam was one of the examples of how Uttar Pradesh had been "looted" by the successive governments since Mr Mulayam Singh Yadav first became the Chief Minister in 1989.

"The systematic loot of Uttar Pradesh is not limited to the scandals that have emerged during Mulayam Singh's regime," he said.

Mr Sibal alleged that there was misappropriation of government fund to the tune of Rs 1,000 crores by fertiliser units in Uttar Pradesh between 1994-2000. The loot was carried out by these units by making false claims for subsidies.

During 1994-2000 when the misappropriation took place, Bahujan Samaj Party leader Mayawati was Chief Minister from June 1995-October 1995 and then from March 1997 to September 1997 and BJP Chief Ministers Kalyan Singh from September 1997-November 1999, (late) Ram Prakash Gupta from November 1999 to October 2000 and Rajnath Singh (present BJP Chief) from October 2000 to March 2002.

Under the fertiliser subsidy scheme, 80 per cent of the subsidy was paid by the Centre directly to the fertiliser units upon their making a claim and the balance 20 per cent upon a report submitted by the state government after verifying the claims of the respective units.

The fertiliser units were given subsidy under the scheme for converting Rock Phosphate into Single Super Phosphate (SSP) which was supplied as fertiliser. The units were obtaining subsidy on the strength of fake documents relating to the purchase of rock phosphate and supply of SSP to the Agriculture department.

Following suspicion raised by the Centre over the genuineness of claims for subsidy by fertiliser units, the Uttar Pradesh government had entrusted investigation of the same to a Special Investigating Bureau (SIB) in the Agriculture Cell in March 2000.

The SIB had conducted only limited inquiry covering 15 of the 29 fertiliser units in various categories. "It was found that in each of the 15 cases, the charge of huge misappropriation of funds was well founded," Mr Sibal said.

The SIB had launched prosecution only against two of the ten units and also limited to seven persons working in the relevant district agriculture department. However, the UP government decided to abolish the SIB and put a quietus to the investigation on January 1, 2003 when Mayawati was the Chief Minister. Her government was at that time supported by the BJP.

In this context, Mr Sibal pointed out that the Centre had admitted before the Allahabad High Court that about Rs 200 crores were misappropriated in the name of fertiliser subsidy in Uttar Pradesh.

''This, of course, is in the absence of a full-fledged inquiry in respect of all 29 units. The appropriation might have run into more than Rs 1,000 crores had such an inquiry been made in respect of all the units.'' Mr Sibal said : ''This action reflects the state of affairs of Uttar Pradesh and the extent of loot. This was not limited to Mulayam Singh's administration only. Every successive administration, since 1989 indulged in systematic loot.''

UNI