Rice export scam: Govt blocks CBI probe, 20 babus go scot-free
TNN Dec 24, 2013, 04.05AM ISTNEW DELHI: The government has refused permission to CBI to probe senior officials allegedly involved in rice export scam, exposing yet again its discretionary power to disrupt criminal investigations.
This probably is the single largest number of officers getting away from criminal investigation in a single sweep. At least half a dozen of the suspect officials are of joint secretary and above rank, while the total number under scanner is about 20 in three different public sector units.
By denying permission to the agency the government has ensured peaceful burial to the scandal in which high-level political links was suspected.
Rice was exported to some African countries in 2008-09 despite ban on non-basmati rice export. The ban resulted in Indian domestic prices falling while international prices shooting up. Immediately after the ban, 22 'needy' African countries were exempted from it, and some of these countries strangely sent request for rice from specific private suppliers.
Once the government approval came for exports, instead of government PSUs such as MMTC, STC, and PEC exporting them, the private companies named by African countries were allowed to procure and ship rice. There were multiple violations, as well as huge profits pocketed by the private exporters.
In a written statement to TOI, the department of commerce said, "CBI was requested to clarify, if it had any prima facie evidence to establish the need for a criminal investigation. CBI replied that no preliminary inquiry had been done by it."
The ministry said that based upon "all the departmental evidence that had already been garnered through the departmental inquiries," a decision was taken earlier this year to reject the CBI request. "Since no misconduct of criminal nature has been established in these inquiries, it would not be fit to give permission to CBI for initiating investigation against the concerned officers of STC/ MMTC / PEC," it said. The ministry didn't explain how it concluded, based on administrative inquiry, that there was no criminal conspiracy.
The department said CVC and other government agencies concerned have been kept "transparently informed in this matter".
The refusal of permission to CBI to probe the conspiracy also stands in contrast to the fact that commerce ministry, after Anand Sharma took charge, blacklisted three companies involved — Amira Foods India, Emmsons International and Shivnath Rai Harnarain India. "This was done because the export of rice to specified African countries had been allowed on diplomatic and humanitarian grounds but the private firms involved were attempting to make undue profits through their commercial transactions in these cases," the ministry said in its written reply.
The commerce ministry also issued an advisory in 2010 to rest of the government to "abstain from conducting business with these firms." The Delhi High Court dismissed writ petitions filed by the firms challenging the decision last month.
The ministry said it issued "chargesheets to officers allegedly found complacent in these export transactions," after conducting departmental inquiries by three separate additional secretary-level officers. "The findings of the inquiry officers reported no serious wrong-doing on the part of the charged officers," it said.
The ministry had informed the CVC in May that "no prima facie criminal culpability or mala-fide could be established against the charged officers".
The ministry admitted that a final decision on the departmental action against the officials was yet to be taken. It would be done after "procedurally required inter-ministerial consultations which stand initiated as per due process".
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