UPA govt faces more trouble, CAG says funds meant for farm loan waiver scheme misused

New Delhi: The UPA government is in more trouble. The Comptroller and Auditor General has published a draft report on the farm loan waiver scheme alleging misuse of funds. According to the report, Rs 52,000 crore were allotted for the debt waiver under the scheme. However, 25 per cent beneficiaries of the scheme did not get the intended benefit, it said.

Finance Minister P Chidambaram has written to the Reserve Bank of India and the NABARD to take action against the officials who allegedly helped in siphoning off funds meant for the loan waivers of farmers.

The UPA is already battling several corruption allegations. The farm loan waiver scheme was being portrayed as the UPA's gamechanger when it was first launched. It was announced ahead of the 2009 General Elections and implemented when Pranab Mukherjee was Finance Minister.

A draft report by the CAG had on Friday said that 25 per cent beneficiaries of the scheme did not get the required benefit.

The RBI has now asked the banks to take action against erring officials. The report is to be submitted within one month. This report could be the new flashpoint between UPA and the Opposition in the budget session.

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