RSP knocks at Sonia’s door for Hudco probe

NEW DELHI: The RSP has taken its complaint against Hudco bureaucracy to UPA chairperson Sonia Gandhi. The party which sought Ms Gandhi’s intervention for ordering a CBI probe and an overhaul of the Hudco, said the CVC had made the same recommendation.

RSP leader and Rajya Sabha MP Abani Roy, who had written letters to the Prime Minister in the past two years accusing some top Hudco officials of corruption and indulging in financial irregularities under the NDA dispensation, has demanded suspension of the officials concerned.

In a letter to Ms Gandhi, Mr Roy expressed his resentment over the the way the PMO and the finance ministry dealt with the issue raised by him first in ’04. “It is unfortunate that neither the PMO nor the finance ministry took note of the corruption issues raised by me during the last two years,” Mr Roy alleged.

He said the CVC’s findings had established the “grave financial irregularities”. Quoting from the findings, the Left MP said the CVC had expressed concern over “large-scale use of manpower and facilities of PSUs by the personal staff of Ananth Kumar, the then minister”.

While suggesting disciplinary action against the officials, the CVC has said the government could consider nominating a part-time director from the RBI or PSU banks on the Hudco board.

The CVC also recommended a special audit by the CAG to examine whether funds borrowed by the Hudco from PSU banks have been used for the stated purposes. Funds borrowed by the body from the banks largely fall in the category of priority sector lending.

The inquiry revealed deviations and relaxation in lending norms and guidelines, and in three cases loans were sanctioned to private companies with dubious track record of repayment. It also talked about strong suspicion of a nexus between Hudco officials, state government agencies and private firms, and that part of the commissions may have been passed on to the officials of the PSUs.

Mr Roy has also written to the PM reminding him of his earlier letters and demanding investigation into all cases which have not been covered in the CVC report. He also sought review of promotions of tainted officials.