Financial irregularities of Rs 10,000 crore detected in Bihar: CAG

PATNA: The Comptroller and Auditor General detected financial irregularities of over Rs 10,000 crore in Bihar government departments during the financial year 2012-13.

"During our audit we detected financial management deficiencies in every government department functioning in Bihar. This has led to the detection of irregularities worth over Rs 10,000 crore in the state," Accountant General (Audit), Bihar, P K Singh said.

Among them was the non-delivery of 25.58 lakh quintal of 'custom milled rice' against 2.14 crore quintal of paddy released to rice mill owners in advance in 38 districts. This resulted in a loss of Rs 433.94 crore to the government.

"This loss was incurred because the Food and Consumer Protection Department did not follow the prescribed rules. According to the rules, the rice-mill owners had to provide 67 quintal rice to the Food Corporation of India and in return the state government was to release 100 quintals of paddy," Singh said.

"In several instances paddy was given to mill owners without taking rice from them. Many of the mill owners defaulted and the state government suffered a loss of Rs 433.94 crore. This was a major financial irregularity we detected," Singh said.