CBI investigation into irregularities in export of non-basmati rice will not have any adverse impact on the proposed disinvestment of MMTC, Commerce Ministry said today.
Giving an assurance that the ministry "will never allow such a thing to happen ever again," Commerce Secretary Rahul Khullar said there is no contingent liability for MMTC, which is a disinvestment candidate in the next fiscal.
Talking to reporters, he said the matter is being investigated by the Central Bureau of Investigation (CBI) and he would not like to "prejudice the outcome" of the probe.
Commerce and Industry Minister Anand Sharma had disclosed in Parliament on November 19 that certain PSU officials did not follow transparent norms in export of non-basmati rice to some African countries between December 2007 and March 2009, resulting in huge profits to the private parties.
MMTC was one of the three PSUs under the Commerce Ministry responsible for the transactions.
Showcause notices were slapped on the PSU officials allegedly responsible for "hugely disproportionate profits to private parties" and "denial of legitimate profits to PSUs."
The government had banned export of non-basmati rice in the wake of escalating prices in the domestic market.
However, on diplomatic ground, it allowed export of limited quantity to some African and the least developed countries.
But the predetermined terms of contracts between foreign buyers and domestic suppliers (with small margins for the PSUs) led to disproportionate profits accruing to private parties, namely the foreign government nominated domestic suppliers in India.
Asked about the timeline for MMTC disinvestment, Khullar said, it was not possible this fiscal.
"My guess is it will be next fiscal."
He said, in the next three weeks the disinvestment dates could be decided.
The disinvestment department is working on the proposal for disinvesting government's stake in the trading giant, which has already split its stock to make it easy for investors.
