Chief minister Akhilesh Yadav had promised action people responsible for the scam after assuming power in March but later put it on the backburner, inviting widespread criticism that he has gone soft on Mayawati and is trying to protect officers apart from an influential businessman, who is also a liquor baron, said to be involved in the scam.
However, even now, the state government has not followed the recommendation of the Comptroller and Auditor General (CAG), which had found large scale anomalies in the sale of the sugar mills. The CAG had recommended a detailed inquiry through the Enforcement Directorate and other competent agencies.
The SP had in its election manifesto announced to form an inquiry commission to probe into all the alleged scams which took place during Mayawati government but after coming to power it did nothing. Akhilesh Yadav tabled the report in the assembly during monsoon session in June but in a written reply to a query of its own party MLA, he said that there is no need for another inquiry.
However, after facing flak from all quarters, the government announced to set up a nine member committee headed by the chief secretary to probe anomalies in sale of sugar mills. And, now the government has decided to hand over the case to the Lokayukta. The step, many fear, would only delay action against the guilty officers, politicians and businessman.
The Mayawati government had decided in 2007 to privatise 10 operational sugar mills belonging to the UP State Sugar Corporation Limited and the 11 closed mills belonging to UP Rajya Chini Evam Ganna Vikas Nigam Limited. The 21 mills were sold between July 2010 and March 2011. The CAG found anomalies at every step -- from undervaluation of land and plant machinery to bid rigging and from disclosure of expected prices to stamp duty evasion.
The CAG found that under-valuation of the sugar mills upto 30% was done by the authorities. After under-valuation, expected prices reduced further by 50%. The expected bid price was disclosed to bidders. Bids were rigged through cartelisation. Though on papers there were several bidders but in reality there were three players -- one group having links with liquor baron Ponty Chadha and second led by a Muslim BSP leader and third the Indian Potash Limited.
While the cartel linked to Ponty Chadha grabbed five mills, the one with BSP leader on board lapped up 10 and the Indian Potash Limited bought six. The mills were sold to the two cartels at throwaway prices. All the decisions related to sale were taken by the Mayawati cabinet on the recommendation of the core group of secretaries. In defence, Mayawati government had denied charges and claimed that cabinet decisions do not fall under CAG's jurisdiction.
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