Date:03/07/2009 URL: http://www.thehindu.com/2009/07/03/stories/2009070353180300.htm

Karnataka

KSCMF accused of misusing funds

Staff Correspondent

DAVANGERE: The Karnataka Rajya Raitha Sangha (KRRS) has urged the State Government to order a high-level inquiry into the alleged misappropriation of Rs. 6.58 crore of maize farmers by the Karnataka State Cooperative Marketing Federation (KSCMF) which had procured maize in Davangere.

In a statement issued here on Thursday, Shekaranaika, secretary of the sangha, alleged that the federation showed accounts that it had purchased 16,55,204 quintals of maize in 2008-09 at a cost of Rs. 141.47 crore. Of the Rs.141.47 crore, the federation showed Rs. 6.58 crore as weighing, loading, unloading and transportation expenditure.

The rest had been paid to farmers as support price to the crop.

Stating that weighing, loading, unloading and transportation and handling charges had been collected from farmers at the time of procurement of maize, he sought to know why the federation showed accounts that it had paid Rs. 6.58 crore towards these charges. He alleged that the federation had cheated farmers and the Government to the tune of Rs. 6.58 crore.

The sangha said that it had information that the Government had instructed the federation not to collect weighing, loading, unloading, transportation and handling charges from maize farmers. It had also instructed the federation to procure maize from farmers without burdening them by levying these charges. In spite of this, the federation collected these charges and claimed the expenditure from the Government. It urged the Government to recover the money and distribute it among farmers.