Moga Pungrain suffered loss of Rs 1.67 cr due to “mismanagement”: The Tribune India
Tribune press service
Moga, March 6
The Moga District Unit of the Punjab State Grains Procurement Corporation Limited (Pungrain) suffered an interest charge of Rs 1.67 crore because it failed to timely verify excess deductions carried out by the Food Corporation of India (FCI) for the cost of jute bags and accrued interest between 2014 and 2017.
Pungrain is engaged in food grain supply operations on behalf of the FCI, Government of India.
The purchased grains (wheat and paddy) are collected and stored in jute bags for delivery to the central agency. For the execution of its operations, the Pungrain obtains and extends jute bags on loan from the central agency.
A recent audit of the Pungrain Moga District Unit found that it loaned 56 18,739 jute bags between 2014 and 2017 to the Food Corporation of India, but they were not returned to the central agency.
The Food Corporation of India therefore deducted Rs 66.76 crore from September to December 2017 from Pungrain’s financial claims, which included Rs 28.51 crore for the cost of the jute bags, Rs 1.72 crore for the value tax. added (VAT) and Rs 36.53 crore for interest on the cost of the jute bags.
However, the interest cost of Rs 36.53 crore is again included in the cost of the jute bags, which is Rs 28.51 crore. After being reported on July 4, 2018 by the audit service, the Pungrain District Office raised the claim with the Food Corporation of India and rectified the erroneous inclusion of the cost of jute bags of 28.51 crore of Rs, after which the FCI refunded the amount to Pungrain.
But the freezing of funds due to excessive deductions made by the FCI cost Pungrain an avoidable interest charge of Rs 1.42 crore. Overall, the mismanagement of late checks of deductions due to the cost of the jute bags and the interest charged resulted in financial losses of Rs 1.67 crore.