22th, June, 2002
Ministry of Consumer Affairs & Public Distribution  


ERRING RICE EXPORT FIRM IN PUNJAB BLACKLISTED


Government has taken stern action against a rice-export firm in Punjab for its alleged involvement in the diversion of rice meant for exports to the local market. The firm, M/s Sharp Menthol India Ltd., has since been blacklisted. All transactions by Food Corporation of India with this firm all over the country have been stopped. Further, the Bank Guarantee deposited by the said firm with FCI is being encashed. Orders to this effect have already been issued by the Ministry of Consumer Affairs, Food & Public Distribution. Shri Hardev Singh, Assistant Manager, FCI, Bhatinda Depot has been placed under suspension for his alleged connivance with M/s Sharp Menthol India Ltd., in the illegal diversion of rice meant for export.

A report on this multi crore rice diversion scam had appeared in a section of the press on the 19th June, 2002. It was stated in the news item that the District Police authorities of Bhatinda (Punjab) had unearthed a major scam involving the diversion of rice purchased from the Food Corporation of India for the purpose of export to the local market through a nexus between rice shellers, some export firms and employees of FCI.

Shri Shanta Kumar, Union Minister of Consumer Affairs, Food & Public Distribution has warned that stern action will be taken against persons indulging in fraudulent activities like illegal diversion of foodgrains. However, genuine exporters have nothing to fear, he adds. Government will continue to extend full support to them to facilitate exports, he said.

Shri Shanta Kumar has also stated that the target of export of 150 lakh tonnes of foodgrains from the Central Pool during the financial year 2002-03 will be fully achieved.

 

 
[previous release] [next release]