In a latest report by CAG on public sector undertakings, it found subsidy claim of Rs 1,518.83 crore of state procurement agencies, including PUNSUP, PAFCL and PSWC, were left unpaid by the Punjab government for procurement of wheat and pulses under 'Atta Dal' scheme (ADS).
SAD-BJP led Punjab government had introduced its 'ambitious' scheme in March 2007, aimed at providing food grains at subsidised rates to poor families with annual income of less than Rs 30,000.
"To meet the shortfall of finances from the state, the procuring agencies diverted Rs 1,063.27 crore from cash credit limit for the purchase of food grains for the central pool. Thus, the procuring agencies became bank defaulters due to non-release of differential cost by state," report said.
Finding deficiencies in implementing subsidised food grain scheme for poor families, the government auditor found diversion of wheat, meant for centrally sponsored schemes, towards 'Atta Dal' scheme.