PDS inefficient, corrupt: SC-appointed panel

New Delhi: Slamming the public distribution system (PDS) in the country as "inefficient and corrupt", a Supreme Court-appointed committee on Tuesday said it's plagued by black marketing and diversion involving a "vicious cartel of bureaucrats, fair price shop owners and middlemen".

The central vigilance committee headed by former Supreme Court judge Justice DP Wadhwa in its report to the apex court said the Rs 28,000-crore subsidy annually spent by the Centre was being pocketed by vested interests and suggested drastic action to stem the rot.

"Corruption is all pervasive in the entire chain involved in PDS. It continues to remain a formidable problem. It is true that most of the functionaries under them in the department are typically callous and resort to corrupt practices."

"It (corruption) is in fact a cancerous growth and has to be chopped off. Patchwork methods will not do. Central Government gives a whooping sum of Rs 28,000 crore to subsidise food for the poor. But till the recommendations given by the committee are put in place, the poor will go on suffering at the hands of corrupt officials, dishonest FPS owners, transporters and possibly to a large extent by unscrupulous millers as well," the report said.

"PDS is inefficient and corrupt. There is diversion and blackmarketing of PDS food grain in largescale. Subsidised PDS foodgrains do not reach the poor who desperately need the same. These poor people never get the PDS foodgrains in proper quantity and quality."

"FPS owner who is aware of bogus/fake ration cards uses these for black marketing of PDS foodgrains. False entries are made in the sale register/stock register and the accounts manipulated and fudged. PDS foodgrain is not given to the cardholder as per his entitlement in fully quantity and yet he is made to pay excessive prices than prescribed," Justice Wadhawa's report said on Delhi government's PDS.

The committee said the PDS system in Rajasthan has collapsed as political pressure is put on officials for distribution and the situation was equally pathetic in Jharkand, Bihar, Gujarat, Orissa, Karnataka and Uttarkhand, for which it had given instances.

A bench of Justices Dalveer Bhandari and KS Radhakrishnan took on record the report for passing appropriate orders.