Centre demands CAG to remove paragraphs about losses due to improper utilisation by Adani Silos

  • The Food Corporation of India was reprimanded by the Comptroller and Auditor General (CAG) of India in April 2018 for causing a loss of ₹6.49 crore to the taxpayers due to the failure to utilize available storage capacity at Adani Silos located in Kaithal, Haryana.

  • The Ministry of Consumer Affairs, Food and Public Distribution, under which the FCI falls, has written a letter to the CAG demanding that these paragraphs be stricken off the report, claiming that the additional expenditure has not been assessed correctly. The CAG, however, has rejected the demand and has refused to delete the paragraphs.

  • CAG’s draft report reveals that between 2013-2014 and 2015-2016, ₹24.28 crore was paid to Adani Agri logistics Ltd. For storage capacity, which was never utilized by the FCI.

  • During this period, storage space with a total capacity of 5.18 lakh metric tonnes (LMTs) is said to have remained vacant in the Adani Silos for 11 months. The storage facility was not used by the FCI to store wheat, but it kept paying the rent.

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