Uttar Pradesh suffered a loss of Rs 1,179 crore because of anomalies and discrepancies in the process of disinvestment in state-owned sugar mills under the previous Mayawati government, according to a CAG report.
The report found that 21 sugar mills — owned by Uttar Pradesh State Sugar Corporation Limited (UPSSCL) and Uttar Pradesh Rajya Chini Evam Ganna Viaksh Nigam Limited (UPRCGVNL) — were sold to private entrepreneurs at low prices by flouting rules.
Soon after its formation in May 2007, the BSP government initiated the process of privatization/sale of the state-owned mills. The report mentioned that UPSSCL was informed about the government’s decision to sell the mills in June 2007. The process for selling 21 mills — including the 10 mills run by UPSSCL and 11 closed mills of UPRCGVNL — was completed between October 2010 and March 2011.
The CAG report cites several discrepancies and anomalies on the part the state’s core group of secretaries on disinvestment and Consultative Evaluation Committee. According to the report, the two committees were supposed to have a role in the bidding process, evaluation of mills, final disposal of request of proposal, selection of bidders and transfer of mills’ ownership. All decisions taken by the two committees were approved by the cabinet, the report said.
The report highlights the undervaluation of land and buildings of the sugar mills by advisers. According to CAG, in the fist phase of disinvestment in 2007-08, the evaluator assessed the market prices of the land of 11 mills of UPRCGVNL at Rs 280.62 crore, indicating a decrease in market value of about Rs 128.41 crore. The report questions how there could be a decrease in the market rate of land.
The report indicts the two evaluators - S R Batliboi and K R Bedmutha- engaged for assessing the values of the mills. The CAG found that there were discrepancies even in the circle rates of the areas in which the mills were located. According to the report, the real rate of six mills- Baitalpur, Barabanki, Bhatni, Chhitauni, Laxmiganj and Ramkola- on the basis of circle rate was Rs 355.2 core and not Rs 198.04 core as given by the evaluators.
The report severely indicts two companies — Wave Industries Private Limited and PBS Food Private Limited — both allegedly owned by liquor baron Ponty Chadda.
Chess champ kills self in Kolkata
The body of Shankar Roy, 35, a chess player who had received the title of International Master (IM) at a young age, was found hanging at his north Kolkata residence on Tuesday. He was reportedly suffering from depression.
While some said he had tried to commit suicide four years ago by setting himself on fire, others said he had suffered from burn injuries because a stove had exploded.
The police said they have recovered a suicide note. “We have sent the body for autopsy. The content of the suicide note, however, cannot be divulged for the sake of the investigation,” said a senior police officer.
Roy, who used to work with the Railways, used to give chess training classes at his residence.