 "Cong MPs disrupt Rajya Sabha over CAG's Purti report")
The Congress Party on Friday ensured a near wash-out of the day’s proceedings in the Rajya Sabha (RS), demanding resignation of Union transport minister Nitin Gadkari in connection with a Comptroller and Auditor-General (CAG) report indicting a Purti group company.
Gadkari is named in the CAG report presented in Parliament recently, as one of the “promoters and directors” of Purti Sakhar Karkhana but he had subsequently disassociated himself from the company. The company was sanctioned a loan of Rs 84.12 crore by the Indian Renewable Energy Development Agency (Ireda) in violation of guidelines.
The Congress is “extremely serious” about the issue, party sources said, as it was on the basis of CAG reports the Congress-led United Progressive Alliance government and its ministers were put on the mat by the Bharatiya Janata Party (BJP), which was in the opposition then. Some sources hinted that the Congress might not allow the House to function in the next few days. Notably, the important goods and services tax Bill is slated to come before the Rajya Sabha.
The House had to be adjourned six times on Friday owing to sloganeering and disruption from the Congress benches, with members even storming the well of the House. Congress’ deputy leader in the Rajya Sabha, Anand Sharma, said the matter was serious and could not be confined to the Zero Hour. “There has to be some accountability,” he said.
“Ireda could recover only Rs 71.35 crore of the Rs 84.12 crore recoverable from the borrower, resulting in a sacrifice of Rs 12.77 crore,” the report said. “Purti Sakhar Karkhana Ltd was sanctioned a term loan of Rs 48.65 crore by Ireda (March 2002) for setting up a 22 Mw bagasse-based co-generation project at Nagpur, Maharashtra. The promoters and/or directors of the borrower company had given their personal guarantees for the loan,” it added.
The CAG report also said that the borrower violated the terms and conditions for subsidy schemes.
The project was to be commissioned in February 2004, but it was finally commissioned only on March 18, 2007. In 2009, it was converted to 100 per cent coal-based operations, in violation of an allowance of up to 25 per cent prescribed in the subsidy scheme.
The promoters and/or directors of the borrower company had given their personal guarantees for the loan. The case was classified as a non-performing asset on March 31, 2007. The borrower did not deposit revenue from sale of generated electricity in the Trust and Retention Account, as committed, which would ensure the repayment of loan.
The report noted shortfall on the part of Ireda as it overlooked that non-compliance on the part of the borrower who paid only Rs 1.45 crore to Ireda and Rs 5.73 crore to other lenders.
“The concurrent auditor, in its report for the period January 2007 to June 2007, stated (October 2007) that the borrower had already settled another term loan with the consortium bank a Rs 42 crore through OTS (one-time settlement) against the dues of an equal amount without the approval of Ireda. Out of an advance of Rs 15 crore against the sale proceeds of power over which Ireda had the first charge, Rs 10.67 crore was also utilised to discharge the OTS settlement with the consortium of banks,” said the report.
Gadkari is named in the CAG report presented in Parliament recently, as one of the “promoters and directors” of Purti Sakhar Karkhana but he had subsequently disassociated himself from the company. The company was sanctioned a loan of Rs 84.12 crore by the Indian Renewable Energy Development Agency (Ireda) in violation of guidelines.
The Congress is “extremely serious” about the issue, party sources said, as it was on the basis of CAG reports the Congress-led United Progressive Alliance government and its ministers were put on the mat by the Bharatiya Janata Party (BJP), which was in the opposition then. Some sources hinted that the Congress might not allow the House to function in the next few days. Notably, the important goods and services tax Bill is slated to come before the Rajya Sabha.
The House had to be adjourned six times on Friday owing to sloganeering and disruption from the Congress benches, with members even storming the well of the House. Congress’ deputy leader in the Rajya Sabha, Anand Sharma, said the matter was serious and could not be confined to the Zero Hour. “There has to be some accountability,” he said.
“Ireda could recover only Rs 71.35 crore of the Rs 84.12 crore recoverable from the borrower, resulting in a sacrifice of Rs 12.77 crore,” the report said. “Purti Sakhar Karkhana Ltd was sanctioned a term loan of Rs 48.65 crore by Ireda (March 2002) for setting up a 22 Mw bagasse-based co-generation project at Nagpur, Maharashtra. The promoters and/or directors of the borrower company had given their personal guarantees for the loan,” it added.
The CAG report also said that the borrower violated the terms and conditions for subsidy schemes.
The project was to be commissioned in February 2004, but it was finally commissioned only on March 18, 2007. In 2009, it was converted to 100 per cent coal-based operations, in violation of an allowance of up to 25 per cent prescribed in the subsidy scheme.
The promoters and/or directors of the borrower company had given their personal guarantees for the loan. The case was classified as a non-performing asset on March 31, 2007. The borrower did not deposit revenue from sale of generated electricity in the Trust and Retention Account, as committed, which would ensure the repayment of loan.
The report noted shortfall on the part of Ireda as it overlooked that non-compliance on the part of the borrower who paid only Rs 1.45 crore to Ireda and Rs 5.73 crore to other lenders.
“The concurrent auditor, in its report for the period January 2007 to June 2007, stated (October 2007) that the borrower had already settled another term loan with the consortium bank a Rs 42 crore through OTS (one-time settlement) against the dues of an equal amount without the approval of Ireda. Out of an advance of Rs 15 crore against the sale proceeds of power over which Ireda had the first charge, Rs 10.67 crore was also utilised to discharge the OTS settlement with the consortium of banks,” said the report.
On Friday morning, Congress leaders trooped into the Well demanding Gadkari’s resignation and forcing Deputy Speaker P J Kurien to adjourn the House first for 10 minutes and then till 1200 hours.
When the Zero Hour began, Congress leaders stepped into the aisle and started raising slogans, this time demanding Gadkari’s arrest. Goa MP Shantaram Naik raised the issue and was supported by his party colleague and Deputy Leader of Opposition Anand Sharma, who said the matter was so serious that it could not be confined only to Zero Hour.
“There has to be some accountability,” said Sharma.
Kurien asked members not to obstruct Zero Hour business said there was no scope for discussion. “During Zero Hour, you cannot make an allegation against any member... For making allegation, there is rule,” he said.
Congress leaders, however, were relentless.