Kottayam: As many as five officials, including the depot manager, Pala, of the Kerala State Civil Supplies Corporation (Supplyco) have been placed under suspension pending inquiry for allegedly hoarding and selling subsidized food items at a higher rate in the open market.
Based on a report by the Supplyco Vigilance, an inter-departmental probe has been initiated against the accused including an assistant manager, junior manager and three shop managers, who allegedly siphoned off goods from the warehouse in Pala, Supplyco regional manager Sreekumar said.
Corruption is rampant in the running of the Supplyco Maveli stores in the district, allegedly with the connivance of employees, as has been acknowledged by vigilance reports. Investigators have come across several instances of staff obtaining a share of commission by selling subsidized commodities to local grocery shops in the district.
Supplyco operates as many as 63 Maveli stores, 40 super markets and one hyper market and a People’s Bazar each in the district. It is alleged that daily-wagers are being made scapegoats while committing such irregularities.
Straight from godown to middlemen
The five accused landed in the investigators’ net after they were found indulging in large-scale diversion of government subsidized goods to middlemen directly from the godown. Normally, such corrupt practices take place at retail stores, officials said.
Investigation revealed that bogus bills, showing that the items were sold at subsidized rates through retail outlets, were also being raised to divert the stock to the black market. It has been found out that employees of three Supplyco stores worked hand in glove with the suspended officials.
Action has been initiated against Supplyco super markets in Pala and Paika as well. The probe pointed towards similar instances of fraud in several retails shops across the district, officials said.
Backdoor deals
Recently, a manager was transferred from a Supplyco shop located in the eastern part of the district to another outlet. Unaware of the development, a local grocery owner approached the new manager through the rear door of the shop to purchase subsidized rice and sugar. He claimed that he had been procuring essential commodities from the outlet for a long time and requested the new manager to cooperate.
When the official questioned him, it was revealed that subsidized goods worth at least Rs 1,000 had been sold to him by the previous manager on commission basis every day during his stint. The outlet’s employees confessed to the manager that they were forced to prepare fake invoices of subsidized goods to sell them in the open market.
Unsubsidized rice
There are also complaints that shops often force customers, who prefer subsidized rice, to buy unsubsidized rice varieties at higher rates. Currently, each card holder is eligible to get 5 kg rice at Rs 25 a week. However, it is alleged that shops force them to purchase additional 2 kg of unsubsidized rice by paying Rs 38-40 per kg. It has become a normal practice as most of the customers choose not question such illegal actions.
Illegal means
It is alleged that employees resort to various illegal means to sell unsubsidized rice varieties to consumers. They would tell customers that the subsidized rice is of poor quality and there is another variety with good quality which costs a little bit more. Eventually, the same subsidized rice will be sold to them at prices ranging from Rs 35-40 per kg in unlimited quantities.
When customers purchase subsidized items other than rice from Supplyco outlets, unscrupulous employees create fake bills using their ration card number to show that they had purchased subsidized rice as well.