Andhra Pradesh Assembly to discuss diversion of Agri Committee funds

Vijayawada: The AP Assembly is likely to discuss at length the diversion of funds related to Agricultural Market Committees. 

After it was found that AMC funds were diverted to agencies like the Markfed, agriculture and fisheries departments, Tobacco Growers’ Association etc., some members said that they would like to take up the issue in Zero Hour. 

A total amount of Rs 135 crore was diverted during 2001-11 as loans to different departments and agencies which were pending for adjustment as of July 2016. Following detection of these anomalies, the members wish to know as to what exactly has been happening in the agricultural department.  As per records furnished to the audit wing, a market fee amounting to Rs 1,787.51 crore was collected during 2011-15 by the AMCs. Of this Rs 1,344.33 crore was spent by them.  

However, substantial amounts from CMF were diverted to other departments and agencies in the form of loans and grants for purposes not covered under the State Act/ Rules. From 1996-97 to 2013-14, loans amounting to Rs 305.62 crore and grants amounting to Rs 54.25 crore were given to various departments and agencies from CMF, and the total amount was Rs 359.87 crore, though this was not permitted under the Act. Besides, of the total loans of Rs 305.62 crore, the departments and agencies had repaid only Rs 54.21 crore to the marketing department leaving a balance of Rs 251.41 crore till 2016 April 2016.

In respect of grants, the recipient departments and agencies had furnished utilisation certificates (UCs) for Rs 26.88 crore, out of Rs 54.25 crore. These agencies had neither refunded the remaining amount of Rs 27.37 crore to the marketing department nor furnished UCs for the same. Despite this, no action was taken by the department for recovery of balance amount, according to the CAG observations.