Fresh raids target firms linked to urea diversion
Chandigarh, June 30 -- The taxation department on Monday carried out fresh raids on dealers and firms suspected of supplying subsidised agricultural-grade (neem-coated) urea to the cattle feed plants of Markfed and Milkfed in place of technical-grade fertiliser.
The taxation department took over the probe after secretary taxation Ajit Balaji Joshi, who also holds charge of secretary cooperation, issued orders.
The action comes a day after the state government chargesheeted seven cooperative department officials, including two general managers, a deputy manager and a chief manager, along with three junior-level officers, following raids conducted over the past week that allegedly found subsidised neem-coated urea being rerouted for industrial use.
Officials of the taxation department said the raids are being conducted to trace the supply chain of the diverted fertiliser.
"During the inspections, we tried to track down the source of the diverted urea stocks. We have sought an explanation from the firms," said an assistant commissioner-rank officer in the taxation department, requesting anonymity.
According to the official, two firms, Indo Organic, Gidderbaha, and Manisha Trading Company, New Delhi, supplied urea to cooperative bodies which are under scrutiny.
"We conducted raids at the Gidderbaha firm's premises, but no record could be found. We have summoned the company proprietor for an explanation. For the Delhi-based company, the local taxation department officials there have been asked to investigate," the official added.
The diversion came to light during random checks by the state agriculture department last week. The department traced the subsidised urea to the godowns of Markfed and Milkfed to be used in cattle feed production.
Both state cooperative entities procure and supply urea to farmers for agricultural use, while separately purchasing technical-grade fertiliser for animal feed production at their cattle feed plants.
On the recommendations of the agriculture department, which initially unearthed the pilferage, the state police have registered four FIRs.
Technical-grade urea, used in the cattle feed industry as well as plywood, dyeing and colouring industries, and for manufacturing bathroom chappals, is sold without subsidy in white bags and costs around Rs.61 per kg.
In contrast, agricultural neem-coated urea is packed in yellow bags and costs farmers only Rs.5.91 per kg due to the government subsidy....
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