The Comptroller and Auditor General of India, CAG,in his report -Implementation of agricultural debt waiver and debt relief scheme (ADWDR)-2008, has pointed out several lapses in the farm loan waiver scheme. In its report tabled in parliament today the CAG revealed that lapses were found in over 22 percent accounts under implementation the Scheme.008.
The CAG observed that more than 20 crore rupees were lent to ineligible persons. On the other hand more than 1,200 poor farmers were deprived of the loan waiver benefit. Besides, the CAG detected tampering of records in more than 2,800 cases. There were also several cases of granting undue benefits to some farmers while depriving some others of higher loan waiver.
The CAG also found violation of rules when a private bank received more than 164 crore rupees for the loans given to Micro Finance Institutions.
Since the scheme was rolled out in the year 2008, more than 52,000 crore rupees of farm loan dues were waived benefitting around 3.45 crore small, marginal and other farmers. The CAG audit was carried out from April, 2011 to March, 2012 covering more than 90,000 beneficiaries in 92 districts of 25 states.
The CAG recommended bank officials and auditors should be made accountable and the government undertake a review of beneficiaries in states where instances of indebtedness was high.
The Finance Minister has earlier informed parliament that the RBI and NABARD have undertaken internal audit of accounts where lapses have been detected in the agricultural loan waiver scheme.