SBBJ reports max auditing irregularities in debt waiver scheme

PTI  15 Aug 2013

NEW DELHI: SBI's largest subsidiary, State Bank of Bikaner and JaipurSBBJ), has reported the most auditing irregularities in the implementation of the UPA-1 government's ambitious Rs 52,000 crore Agriculture Debt Waiver and Debt Relief Scheme, 2008. 

As of June 2013, as many as 499 cases have been detected by public sector banksand cooperative banks, where the responsibility of auditors has been fixed, sources said. 

Of the total, SBBJ detected 314 cases. In these cases, auditors and statutory auditors failed to point out irregularities related to the scheme, according to sources. 

Responsibilities have been fixed in such cases and banks have initiated action, sources said. 

SBBJ is followed by Kolkata-based United Bank of India with 138 such cases. In these cases, responsibilities of auditors have been fixed. 

Based on the observations of the CAG in its report on performance audit of farm debt waiver, the Finance Ministry had directed all the lending institutions to assess irregularities done by banks in the scheme, take necessary remedial action and re-verify all such cases. 

Re-verification was done with the objective of recovery of amounts from ineligible beneficiaries, recovery of excess payment and fixing responsibility of the bank staff and auditors in appropriate cases. 

Third on the list is State Bank of Mysore, which registered four such cases. 

In its report released in March, CAG had found several cases where ineligible farmers were given the benefit of the scheme and instances of tampering of records were also found. 

It had said several farmers who were eligible for the benefit under the scheme were not considered for loan waivers by the lending institutions. 

The report pointed out that the banks also claimed undue benefits like penal interest, legal charges and miscellaneous charges from the government. 
Under the scheme, banks were supposed to bear these charges.

 Referring to the issue of tampering of records, CAG suggested the Department of Financial Services should review such cases and take "stringent action" against erring officials and banks.