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Monday, July 27, 2015

Chikki that nourished malpractices in Maharashtra Mantralay – Maharashtra Chikki Scam Part 2

In February 2013 Pankaja Munde awarded 76 crore chikki contract to Suryakanta Mahilaa Audyogik SahkariSanstha SMASS . Earlier in 2013 also SMASS had bagged 38 crore chikki contract in Congress - NCP run government, obviously without tender , competitive bids and despite of clear objections from commissioner , Adivasi welfare . Afterwards order was stayed and High level inquiry was in this case. On account of objections raised by then BJP member’s .Interestingly Not ruling party nor opposition followed the case.

Then BJP came in to the power and Pankaja Munde awarded exactly double amount i.e 76 crore chikki contract similar way and same contractor, Despite Supreme court order and High Court directives, Clear opinion of then commissioner (industries) and decision of a committee headed by Chief secretary on 27 June 2013 ( Anne -8) to not to purchase Items on Rate Fixation and

off course without tender or competitive bids .Wasn’t that interesting ?

Actually as per supreme court and Central government directives the food to be provided should be fresh, hot and local. Accordingly government of Maharashtra on 6 July 2009 appointed a committee to decide rates, quantity of recipe of food that was to be provided anganwadis as Take Home Ration (THR) and to eat at anganwadi itself (Anne - 10) . Accordingly a GR was issued on 24 august 2009 directing quantity and recipe of food that was to be provided to anganawadi children.

In This GR there was no mention of any type of Chikki or ayurvedic biscuits. (Anne -11).Ground nut laddu was there in that list. Then how come chikki was introduced in anganwadi children supplimentary nutrition food?. Story is interesting on 2nd June 2011 then government decided that instead of sweet ground nut laddus chikki will be provided to children and pregnant ladies anganwadi in rural and urban areas. ( Anne - 12) .Which dietitian or doctor recommended it? Was impact of eating chikki on malnourished children studied ?.There is no answer to that. However interesting part of the story is there no chikki item in SMASS’s product list and it has never introduced chikki in open market. What does that mean ?

However the rate given as per tender for ground nut laddu was Rs. 1.27 for 10 gram i.e. Rs 12.70 for 100 grams and it was kept the same for chikki in June 2011.

In February 2012 government suddenly reserved several items like mango pulp, pickles, amala- kokam sharbat including Chikki to be purchased from Suryakanta Mahilaa Audyogik Sahkari Sanstha SMASS only. (Anne - 13).Don’t ask why this privilege was given to SMASS . Now how and why some items were reserved to be purchased from SMASS is matter of investigation. What were its credentials?. . But when organization

belongs to political person then nothing is impossible.

In august 2012 rates for chikki’s to be purchased were fixed and they almost almost double the rate in 2011. ( Anne - 14). Rates decided for SMASS were applicable to 30 June 2013 only.

On 29 April 2013 work orders of supply of chikki was issued to SMASS, obviously without tender , competitive bids and despite of clear objections from commissioner , Adivasi welfare . (Anne -15, Page 1) . Even then Purchase orders were issued. Afterwards orders were stayed on 14 June 2013. On objections raised by then MLC on 16th July 2013 and Minister had assured High level inquiry in this case. ( Anne – 15, page 7) .

On 3 june 2013 Radika rastogi then Development commissioner (Industries) had clearly opined “The CSPO has not done any Rate contract for chikki. There is only Rate fixation. In case of rate fixation it is not done competitively as in an RC ( I.e by way of open tenders).it only means that rate are reasonable, it does not mean that rates are competitive. Rate fixation is only meant for small orders & reservation is given for the certain items produced by women’s groups, societies, organizations of ex servicemen, blind/handicapped persons etc. In the present case, where purchase is to the tune of 37 crores, it is advised that purchase based on rate fixation would not be appropriate. Open tender procedure need to be followed wherein the specification and & standard are clearly spelt out. “( Anne – 15, page 6)

Accordingly One man High level committee of P.S Meena was appointed to inquire in to the matter on 20 November 2013 . But as the matter was High profile committee didn’t find time to enquire into it.(Anne -16 ) Hence again extension was given to committee till May 2014.( Anne - 17 ) But what happened to committee report no one knows.

Interestingly inquiry committee on chikki was appointed on complaints of BJP members, none of them followed it. Even after they came in to the power in October 2014 they didn’t do anything. Moreover one of their colleagues Pankaja Munde awarded contract to SMASS. What does that mean? .Allegations were baseless or contractor was powerful enough to silence everybody?

Despite Supreme court and High Court directives, Clear opinion of then commissioner industries and decision of a committee headed by Chief secretary on 27 June 2013 ( Anne -8) to not to purchase Items on Rate Fixation .The extension was given to rates fixed for SMASS on 1 September 2014 (Anne -18)

On 12 February 2015 pankaja munde had a meeting with principal secretary (WCD) and as per her orders and Principal secretaries guidelines, all previous proposals were rejected and fresh proposal were submitted . And accordingly three work orders were issued First one was for 6 month to 3 year old and amount was 23 , 85, 65,763/- (Anne - 19)

Interestingly in this order word ( amaranth) rajgira laddu/ chikki were there but afterwards only word chikki was mentioned in work order awarded. And accordingly only chikki was provided . There is difference between preparation of laddu and chikki . There was no mention of any rajgira Item in recipe GRs

Through second GR she ordered purchase of micronutrient chikki/ laddu but actually chikki was provided . Interestingly rates of groundnut chikki and and micronutrient chikki were different. Ground chikki / laddu rate 210 / kg while micronutrient chikki was 285/kg.This procurement was of 79, 81.42,671/- for for children of 3 to 6 year and pregnant and lactating women. (Anne -20 )

Through third GR she proposed to purchase of coconut chikki of 10,41, 55,260 for children of 3 to 6 years (Anne - 21)

This all purchase was for for year 2014- fifteen i.e. for only thirty days following chikki items were

Rajagira chikki 6 months to 3 years children

quantity 1109608 kg rate Rs 215/ kg = 238565720

Micronutrient 3 to 6 yrs 1909513 kg Rate 285/kg = 544211205

‘’ women 890987 rate 285 /kg = 253931437

Coconut chikki 3 to 6 yrs 520776 Rate 200/kg = 104155260

Total chikki kg 4430884 (forty four lakh thirty thousand eight hundred eighty four kg)

Rupees 1140863622 ( one hundred fourteen crore eight lakh sixty three thousand six hundred twenty two Rupees) amount actually sanctioned earlier was next day revised to 75 five crores ( Anne – 23 A) and also items micronutrient chikki for women and coconut chikki for 3 to 6 years children were cancelled. Don’t ask Why nutrition was denied to pregnant and lactating women and children of of 3 to 6 years group. Reason was obvious some more contractors who were sniffing in Mantralay corridors had also got clue of funds allocated to WCD. They also needed to be nourished. And only contractors do have approach in Mantralay and not the malnourished children and women.

Does the SMASS has capacity to prepare 30 lakh kg chikki ? . can a six month old infant eat chikki ? Why Pankaja Munde awarded contract to tainted contractor violating all the norm and directives and that too to a contractor against her own collogues had raised fingers. These are are the question she has to answer now.

This Scam Has a History,Maharashtra Chikki Scam Part -1

After firm denials of any malpractices in purchases contracts worth Rs 206 crore in a single day Pankaja Munde has now partly admitted her misdeeds. While doing so she also admitted that a company that provided chikki and khichadi of substandard quality in past was again given a contract. In her partial confession she cleverly has tried to put curtain on bigger wrongs. Not a single procurement of 206 crores she has done in February 2015 is free from scam.

Photo courtesy NDTV.com

It seems that this business of siphoning public money was going on in WCD since last many years. They wait for money to be allotted under integrated child Development Scheme ( ICDS ) and then distribute money amongst themselves. To do that they ignored, broke all procurement rules and guidelines. They arbitrarily made rate contracts; did rate fixation gave extension to it. And as all the ministers and senior officials were equally party to it no complaint helped break this racket.

As far as purchases of chikki and ayurvedic biscuits are concerned it also amounts to contempt of Supreme Court orders in 2004 and 2006. Supreme court had banned private contractors for supply of nutrition and directed use of village communities, self help groups and mahila mandals. On 7th of October, 2004 Supreme court ordered that the contractors shall not be used for supply of nutrition in Anganwadis and preferably Integrated child development scheme (ICDS) funds shall be spent by making use of village communities, self-help groups and Mahila Mandals for buying of grains and preparation of meals.

On 13th of December, 2006 Chief Secretaries of all State Governments/UTs were directed to submit affidavits giving details of the steps taken with regard to the order of supreme Court of October 7th, 2004 . After that all the States and Union Territories were directed to provide supplementary nutrition in the form of a morning snack and a hot cooked meal to the children in the age group of 3 to 6 years.

Photo Courtesy Mid Day

But government of Maharashtra instead of hot cooked food provided chikki and biscuits as a supplementary nutrition awarded work to “ Mahila Sanstha’s” instead of mahila mandals or self help groups gave it Mahila sanstha or mahila institutions

Principal adviser to the commission that Supreme court of India had appointed to monitor the implementation of the food and work related schemes in the country (Anne - 1 ) had pointed out that Following the Supreme Court orders of 2004, the Government of Maharashtra attempted a system of decentralized supply through women’s Self Help Groups (SHGs) . To ensure that big contractors did not come in, they passed a Government Resolution that no single SHG should supply more than five anganwadis. (Anne 2 )

While this system was beginning to work, the Government of Maharashtra in 2009; once again introduced a new system through which it allowed backdoor entry of big private contractors with only commercial interests. Then GR in that regard was issued in 2011 ( Anne -3)

Meanwhile They cleverly used word ‘Mahila sansthas’/ ‘woman’s institutions’in tender process . Mahila sansthas’/ ‘woman’s institutions’ includes not just SHGs/Mahila Mandals but any entity that has women in it, irrespective of size and turnover. By including Mahila Sansthas the government of Maharashtra opened the door for private companies and contractors. And the contract was awarded to three mahila sansthas

The said report also observed following irregularities , in contract given to these santhas

• The contracts for supply of THR ( Take home ration) under supplementary nutrition project ( SNP) has been given to Mahila Mandals which are further sub-contracting the responsibility of production of THR to private units. This is in violation of the spirit of the Supreme Court order that production and distribution should be decentralized and private contractors kept out

• The private units that have been leased by the Mahila Mandals for production of THR are owned by family members of the members of the Mahila Mandal who have the controlling authority over all organizational and financial matters in relation to the said lease agreement.

• In spite of many complaints regarding the quality of THR, there has not been any serious investigation or suspension of contracts. Lab reports on quality submitted by the Mahila Mandals are suspicious as all three mahila mandals approach the same lab and when the quality is tested in a government lab through picking a random sample, the THR failed to meet the nutritional norms. Further, even an independent checking by investigation bureau of the newspaper, Daily News and Analysis, Mumbai through a private lab showed that the THR being supplied does not meet nutritional norms.

• Two of the units (Paras Foods and Indo Allied Protein Foods) that have been leased by the Mahila Mandals for supply of THR are already under scrutiny following an FIR and Charge sheet by the CBI on charges of corruption in supply of food for the Tribal Department.

• Many of the transactions by the Mahila Mandals through the sub-committees have been done without informing and taking consent of the Co-operative Societies Department, as required by law.

• Although the ( Expression of interest ) EOI was invited for each district separately, the entire responsibility has been given to only three mahila mandals who are producing the THR in a total of less than ten units for the entire State, out of which one unit is based out of the State in Rajasthan.

Contract awarded to three mahila sansthas were front originations of private contractors.(Anne -4) The report also throws light on names of private contractors. Interestingly according to media reports most of these contractors were near and Dear ones of Munde family. (Anne -5 ).That may the reason suryakanta is now blaming gujrati marwadi ( Anne – 6)

Before going to actual procure procere we must see what is Rate Contract and Rate Fixation

A Rate Contract is an agreement between the purchaser and the supplier for supply of specified goods at Specified price and terms & conditions during the period covered by The Rate Contract (Normally it is always One year) . No quantity is Mentioned nor is any minimum drawal Guaranteed in the Rate Contract. The Rate Contract is in the nature of a standing offer From the supplier firm. But there is always limit on maximum purchase on Rate Contract

All government purchases in Maharashtra above Rs 3 lakh are mandated to be made after inviting tenders. This provision is there since 1993 . earlier purchase worth Rs 500/- at a time and Rs 20000/- of as ingle item in a year was allowed on rate contract . But above that, tender process was mandatory. Gradually this limit and provision was increased to 3 lakh till December 2014. (Anne – 7)

Rate fixation is only meant for small orders & reservation is given for the certain items produced by women’s groups, societies, organizations of ex servicemen, blind/handicapped persons etc. Nagpur bench of Bombay high court declared rate fixation illegal (2545/2012).Accordingly on 27 June 2013 in a meeting held chairmanship of chief secretary it was decided that as HC order henceforth Rate fixation will not be done. Attachment.(Anne - 8).

Earlier there were two major categories of children 6 months to 2 Years and 2 – 6 years. As per guidelines for children between 6 months to 2 years supplementary nutrition was to be provided in form of paste. It was also condition that food provided to children below 3 years should be light to eat and digest. Recipe for such food had been also given n this GR ( Anne - 9). There was no chikki, biscuits, eternal feed powder or protein powder in this chart.

Items like chikki , biscuits were never in this scheme but were procured for children in 6 month to 3 years range without adopting any procedure or considering it effect on children’s health.