Punjab and Haryana High Court orders probe into Markfed’s 8-year-old wheat shortage claims

By Saurabh Malik

It may sound hard to swallow, but it is true. The Punjab State Cooperative Supply and Marketing Federation Ltd (Markfed) took eight years to file a loss claim for Rs 50-lakh wheat shortage. Making it clear that the delay was incredible but not isolated, the Punjab and Haryana High Court has now ordered a probe by the Special Investigation Team (SIT).

“Unfortunately, the present case is not the first one which has come up before us, where claims made on behalf of appellant (Markfed) to recover huge amounts have ended up in dismissals only on the ground of unexplained delay. The connivance, if any, in the filing of belated claims on the part of its officials has never been probed by the appellant. At least no such information has been given to us,” the Bench of Justice Deepak Sibal and Justice Deepak Manchanda asserted.

Emphasising the gravity of the issue, the Bench noted information available with it suggested that the state of Punjab had around 73 per cent shareholding in Markfed. The state for the last five financial years had allocated Rs 846.11 crore loan to the organisation.

The Bench made it clear that the probe’s main objective was to ascertain whether Markfed employee or officer had colluded with the individual responsible for the losses. It added that the SIT, headed by Punjab Human Rights Commission “Special DGP Investigation” Prabodh Kumar, would examine all cases dating back five years prior to May 1, where proceedings were initiated to recover more than Rs 10 lakh, but the cases were dismissed solely due to inordinate delay.

Going into the background of the matter, the Bench observed the wheat, procured on Markfed’s behalf between 1998 and 2002, was to be dispatched to the central agencies within six months. But it was dispatched only in 2004. Wheat shortage between procurement and dispatch, amounting to more than Rs 50 lakh, surfaced the next year.

The Bench observed the claim for the loss was lodged before the Patiala Cooperative Societies Joint Registrar only in 2013. But the delay could not be explained following which the Joint Registrar in August 2015 dismissed the claim being time-barred.

An appeal against the order could have been filed within 60 days, but it was filed 416 days beyond the prescribed period of limitation. As such, the Cooperative Societies Additional Registrar (Credit) also dismissed the appellant’s appeal on the ground of delay.

Markfed Managing Director and all its officers were directed to co-operate with the probe. The state DGP was also asked to extend all possible assistance to the SIT, which was asked to furnish its status report by the next date of hearing in July last week.

This article has been republished from The Tribune.