Tamil Nadu Chief Minister Jayalalithaa on Thursday demanded that Union Fertilisers and Chemicals Minister M.K. Alagiri be dismissed from the Cabinet and a CBI investigation be ordered into what she suspected was a scam involving Rs. 1,000 crore as windfall profits to fertiliser manufacturers.
In a statement released here, Ms. Jayalalithaa cited media reports to say that the government’s nutrient-based subsidy scheme introduced in 2010 appeared to be a ruse to enable fertiliser makers to make huge profits and sell key fertilisers such as di-ammonium phosphate and muriate of potash at inflated prices to farmers.
She said media reports had stated that Union Minister of State for Fertilisers, Srikant Jena, had put up a note to his Cabinet minister last year, drawing his attention to companies making between Rs. 4,000 and Rs. 5000 per tonne as profit on DAP and about Rs. 6,000 per tonne on complex fertiliser. He had also informed Mr. Alagiri by another letter that companies had obtained favourable orders from the ministry to move fertilisers to the market well before the season’s needs arose, as they anticipated a cut in food subsidy in 2012-13 and feared a fall in fertiliser prices in the international market. Ms. Jayalalithaa said that according to media reports, Mr. Alagiri had not acted on these notes.
She recalled that she had written to the Prime Minister in June 2012, explaining that the government’s new policy of giving nutrient-based subsidy was severely affecting farmers and demanding that the old policy of having a stable maximum retail price be restored. However, there was no action on her letter.
Giving details of alleged profiteering by fertiliser companies, she said DAP had been sold in the market at a retail price of Rs. 25,000 per tonne in June 2012 and the subsidy given by the government was Rs. 14,300 per tonne. At the same time, the price of imported DAP was only Rs. 31,900. Even after accounting for transport and distribution expenditure, the companies would have made a profit of Rs. 5,000 per tonne, she said. In the case of MOP, the companies availed of a subsidy of Rs. 16,054 per tonne and ended up making a profit of Rs. 5,500 per tonne.
When asked about these matters, Mr. Alagiri reportedly replied “Go and ask the Prime Minister,” she quoted media reports as saying and wondered whether “the nutrient-based subsidy scheme has been introduced only to indulge in corruption.”
As companies seemed to have gained Rs. 1,000 crore in the name of government subsidy, a corresponding loss had been caused to the government and farmers, Ms. Jayalalithaa said.
She demanded that the Prime Minister remove Mr. Alagiri from the Cabinet and order a CBI probe to unearth the full details of the scam and initiate criminal action against those involved.
Keywords: Fertilisers scam, Jayalalalithaa, M.K. Alagiri, political scandals, UPA scams, fertilisers subsidy
Even as per Jayalalithaa's statement, the companies would have made a profit of Rs.5 per kg for DAP and Rs.5.50 per kg for MOP. If the companies don't make even this nominal profit what is the purpose of setting them up? How do they pay salaries, bonus and other facilities for employees? Corporates are there for earning profits and pay dividend to shareholders. I don't think making allegation just for making it or political gain is correct.
Why to refer to CBI when a efficient State police is there under the Chief Minister?
Money,money and money ,Brighter than sunshine,And ,sweeter than honey ! One needs
money for all requirements of life including fighting and winning elections,please political
bosses/masters,and above all ,the best of everything of the country,nay the planet !
And,when most of them/us,are in the business of earning money,it becomes difficult to
"remove" one instead of all,lock,stock and barrel
Child
Just correlating the profits earned by these companies based on a
government policy, to poor farmer's suffering, does not strongly base
a scam allegation. Politics to fight and enact people-friendly
policies transparently is what needed, rather than on alleging
individuals holding relevant offices. DMK and congress men are experts
in money laundering methods and in doing legalized corruption by
enacting politician-friendly policies as seen in spectrum allocations.
She should detail any wealth accumulation or money laundering
involvement in which Alagiri is a beneficiary. Otherwise this would
only make people to think, as an allegation made in light to the
forthcoming parliamentary election. She should also shun this blaming
politics and try a descent politics, which Tamilnadu people are long
waiting to see. Only she is capable of garnering such trust and
support from young people. It is all possible that Alagiri couldn't do
this scam as he rarely visited his ministerial office.
ms.jayalalalithaa now turn on Mr.alagiri instead of cavery
result....this is bad...
1)It doesn't behove of DMK if it had not got involved in a scam where
bee-hive of money treasure.Being a novice took much time.
2)Like Raja,Azhagiri too failed in scientific corruption of unpublished
manifesto of this Dravidian outfit.
3)This also proves Stalin is the right successor who has not been named
in any scam as he"studiously followed the method of footsteps of his father"
Even Mr.Alagiri is right, when he says "Go and ask the Prime Minister"
(quoted above in the news item). For, the Prime Minister is supposed to
be in the know of things, through various channels, the goings-on in his
government. Further, Mr. Jena (the Minister junior to Mr. Alagiri) must
have, as per convention, brought notice of the Prime Minister if there
are serious breaches in the functioning of the Ministry in which he is
the junior Minister if the Cabinet Minister has not heeded to his
suggestions, being the second-in-command of the Ministry.
Be rest assured that MMS is not going to take any action against MKA.
Well, it was Mr Alagiri himself who said 'ask the Prime Minister'. So she
is now asking. It is for the PM now to say whether he believes
Alagiri too, like Raja before him, is innocent.
When I hear about any subsidy scheme, it reeks of corruption. The
beneficiaries of the so called subsidies, are made to make the under
the table cash payment to the politician in-charge, in this case
Alagiri. This family seems to have been born on this planet, to loot
in the guise of politics. When 2G came to the fore the ruling govt
said that there was no scam, then with time it just got bigger and
bigger. So if the PM has learned something from the 2G, he better look
into it before it becomes a avalanche. When this family is accused of
corruption, sure there is something to it..rest assured.
the demand of Ms Jayalalitha seems to be genuine ...Let him prove his honesty..!
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