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An assurance of action from Prime Minister Manmohan Singh silenced the vociferous Opposition voices but momentarily. In the Rajya Sabha, the PM promised "stringent possible action" against defaulters. It did not stop the Bharatiya Janata Party members from storming the well of the House, demanding action against the "swindlers". They were not placated by the PM's statement that the report would be placed before Parliament's Public Accounts Committee in due course.
Singh said, "This is a matter which should be entrusted to the Public Accounts Committee, as per normal practice. If there are any irregularities, which have been shown, I assure the House that we will take stringent possible action against the defaulters."
The CAG report, tabled in Parliament yesterday, said several ineligible farmers were given farm loan waivers, while many eligible ones were disqualified by banks. The scheme was launched in 2008 and is believed to have played a big role in bringing the ruling UPA coalition back to power in 2009.
Agriculture Minister Sharad Pawar, on the sidelines of a function in the capital, defended the Rs 52,000-crore farm debt waiver scheme, stating there was no "misappropriation" of funds. He sought a more comprehensive audit by the CAG to get a better picture.
The sample size taken for auditing was "too small". An audit of a "significant" number of accounts should be done by the CAG, he said. "The Government of India has taken the decision and money has been sent to banks. Accounts and beneficiary list has been selected by banks under the supervision of RBI (the central bank) and Nabard (National Bank for Agriculture and Rural Development). Money has directly been transferred to accounts. Where is the question of misappropriation?"
Pawar held the portfolios of agriculture, food and consumer affairs during that period.
The matter was raised in the Rajya Sabha by BJP veteran Ravi Shankar Prasad. "It is a clear case of scam. It appears that banks in collusion with middlemen sought to siphon off crores of rupees," he alleged. The BJP demanded action against those responsible.
In Parliament, members of all parties were on their feet, accusing the UPA of playing with the lives of poverty-stricken farmers, who were driven to suicide.
The Lok Sabha, too, witnessed noisy scenes and was adjourned for an hour. The House witnesses a brief impromptu discussion on the issue during which leaders of several parties �" including JD-U, Left, SP, BSP, BJD, Shiv Sena, SAD, TDP and JD(S) �" attacked the government on the implementation. The government agreed to a full discussion on the issue.
Leader of the Opposition in the Lok Sabha Sushma Swaraj said thousands of beneficiaries were denied the benefits, while those not eligible got the relief. She demanded that officials of banks and auditors should be questioned and police reports filed. She said RBI had convened a meeting of banks in January and given them time to rectify the mistakes. "But no action was taken."
RJD's Lalu Prasad demanded strict action against bureaucrats who had looted public money, giving politicians a bad name.
