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Thursday, May 03, 2007
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Sibal alleges fertilizer scam in Uttar Pradesh

Special Correspondent

"Successive governments involved"

NEW DELHI: The Congress on Wednesday said successive Governments in Uttar Pradesh since the one under Mulayam Singh came to power for the first time in 1989 were involved in a "Rs. 1,000-crore fertilizer scam."

Barely three days after raking up the issue of alleged irregularities in Noida plot allotments, Union Minister Kapil Sibal said the Governments did not take any action except launching prosecution against seven employees of the Agriculture Department and two fertilizer units.

Mr. Sibal, in charge of the party's media management committee for the Assembly elections, said the Centre in its counter affidavit filed on a writ petition filed in the Allahabad High Court in September 2003, admitted that about Rs. 200 crore was misappropriated in fertilizer subsidy. It was claimed on forged documents.

"This, of course, in the absence of a full-fledged inquiry in respect of all 29 units [allegedly involved]." Misappropriation of more than Rs. 1,000 crore might have come to light had an inquiry been conducted into all the units, Mr. Sibal told a press conference here.

False subsidy claims were made by fertilizer units between 1994 and 2000 and a special investigation bureau of the State agriculture cell conducted a probe. Of the units classified into categories `A', `B' and `C,' the first was exonerated without any reason being assigned, he alleged.

After an inquiry into the last category, prosecution was launched only against two of the 10 units in an exercise limited to seven persons working in the District Agriculture Department, Mr. Sibal said.

The State had claimed the fertilizer subsidy between 1994 and 2000, during which it was headed by Mayawati (June-October 1995 and March-September 1997), Kalyan Singh (September 1997-November 1999), Ram Prakash Gupta (November 1999-October 2000) and Rajnath Singh (October 2000-March 2002)

During January 2003, Ms. Mayawati abolished the special investigation bureau probably under BJP pressure, Mr. Sibal said.

The bureau had sought permission from the Agriculture Secretary for launching prosecution against the employees of the District Agriculture Department who verified the claims of the 15 units.

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