Khammam: Inquiry into misuse of funds by SC Corporation

Khammam: The state government suspects serious misuse of funds in SC Corporation while issuing loans to the beneficiaries.

Sub-collector Anurag Jayanthi has begun an inquiry into the issue. It has been learnt that massive irregularities took place in the issuance of loans and several loan sharks may be exposed, after the completion of the inquiry.

As per the details received, crores of rupees were misused in the loans issued by the SC Corporation in 2015-16 as part of providing employment to Scheduled Castes’ youth. Amounts were released without even knowing the real beneficiaries. The money was taken allegedly without setting up proposed units.

The Corporation used to give money directly to agencies and business firms who used to supply implements to set up the proposed units. But, all these cheque transactions were found to be bogus.

Bogus Agencies were set up on the name of some persons and cheques would be given on their names. Later, cash will be drawn and shared by the bogus beneficiaries.

A huge share is allegedly received by the officials of the Corporation for loan disbursement and  cheque issuance. The government issued loans to 180 beneficiaries and paid Rs 7.99 crore to them. Around Rs 4.75 crore was subsidy in the total amount.

Nearly 90 per cent of the members submitted wrong quotations and got subsidy amounts, without setting up units.

Interestingly, one person issued quotations to all the beneficiaries. Either the bank or the officials of SC Corporation have not checked the malpractice. All those who were involved allegedly colluded and looted crores of rupees worth government funds. The state intelligence  has also been collecting information on the misuse of SC Corporation funds.

There are doubts on the loans issued in 2016-17 and 2017-18. There has been a demand from the Scheduled Caste leaders to conduct a probe into the total loans issued by the Corporation since the last three years.