The probe into an alleged fraud of 1,200 crore subsidy to fertilizer manufacturers, who allegedly received the subsidy without actually supplying fertilizers to distributors, has been referred to the CBI by the Allahabad high court.
The economic offenses wing has been looking into the case up until now (EOW).
The scam was reportedly committed in Uttar Pradesh between 1998-99 and 1999-2000, and an FIR was filed on September 10, 2004, at Kotwali police station in Fatehgarh, Farrukhabad district, against 20 accused.
Following the investigation, charge sheets were filed against five of the accused, while the other 15 were allowed to go by the EOW, the investigating agency.
"The investigation seems to be faulty and to reveal the accused who were let off and bearing in view the misappropriation of a huge amount of public money, the court is of the viewpoint that the issue necessitates comprehensive further investigation," Justice Gautam Chowdhary said in response to a petition filed by one Avinash Kumar Modi, who had questioned the charge sheet filed against him in the case.
In addition, the court instructed the CBI to present its progress report to the court on the next hearing date in an order dated February 16.
The petitioner, who is one of the scams accused and is accused of misappropriating about Rs. 48 lakh, had asked for the proceedings against him to be quashed. He said that the Economic Offenses Wing (EOW), which is investigating the issue, made him a scapegoat by ignoring the big fish.
In his plea, the applicant claimed that high-ranking government officials were involved in the scheme and that the company that benefited from the scheme by claiming subsidies had been exonerated. The state government communicated about the scam in the year 2000. According to the letter, wrongful loss to the state exchequer had occurred, and an inquiry was conducted in this alleged scam under an order issued by the supplementary chief secretary, agricultural commissioner.
During the fiscal years 1998-99 and 1999-2000, it was discovered that the sale and purchase of numerous tonnes of single super phosphate were found to be false and that the government was given a subsidy based on false claims.
