Rakesh Dixit
A major income tax department operation in July set off stunning
revelations as to why Madhya Pradesh continues to be among top two states in
India in child malnutrition despite spending billions of rupees on public
nutrition distribution system.
Madhya Pradesh is second after Bihar in malnutrition with 42.8 %
children being severely undernourished. Worse, Infant Mortality Rate (IMR) at
51/1000 is highest in the state in India, according to 2015-2016 National Family
health Survey (FHS ) report.
The IT operation, carried out for three days in 30 locations in
Bhopal, Indore and Mumbai, blew up the lid on what has come to be known as
multi-billion Dalia scam.
Senior Congress
leader and former Madhya Pradesh chief minister Digvijay Singh raised the Dalia
scam in the Rajya Sabha on August 18. He dared Prime Minister Narendra Modi to
get the scam probed into, adding the fund which was misused was of the Centre’s
Integrated Child Development Scheme (ICDS).
‘ The Congress will
file Public Interest Litigation (PIL) in the Supreme Court to unravel the scam
and lodge an FIR against the culprits’, Singh said.
The Shivraj Singh
government is trying hard to hush-up the scam as many powerful bureaucrats,
most notably the chief minister’s Man Friday SK Mishra, might land in trouble
if murky details of the rip-off come to light.
SK Mishra wears
many hats. He is principal secretary to the Chief Minister, Principal
Secretary, Public Relations and also Managing Director of the Madhya Pradesh
Agro Industries Development Corporation. The corporation, aka MP Agro, turned
into a milk cow in 2008 after it secured the authority from the Woman and Child
Development department to engage private companies for manufacturing and
supplying nutritive Dalia and readymade food packets to Anganwaris across the
state.
Nearly 93000 Anganwaries
are mandated to distribute nutrition to pregnant women, malnourished children
at their centres. The supplied food packets are also distributed among
schoolchildren as part of mid-day meal.
The MP Agro along
with three companies —MP Agro Nutri Food, MP Agro Food
Industry and MP Agrotonics Limited—monopolises the food chain supply and
manufacturing. The four entities function in joint venture where MP Agro’s
holding is 30% and the companies’ holding is 70%. Earlier the equity share
between the corporation and companies was 51: 49 which was tilted in favour of
the companies. Together they command annual budget of Rs 1200 crore.
The MP Agro Managing
Director has a key role in deciding which company will get what share of the
fund for manufacture and supply of prepared food. Stakes being so high, it is
no wonder that the Chief Minister’s most
trusted officer has been entrusted with the task.
Before SK Mishra,
another Shivraj Singh Chouhan’s blue-eyed bureaucrat Rakesh Shrivastava was the
MP Agro Managing Director till 2014. Like Mishra, Shrivastava also held the
post of Commissioner, Public Relations as additional charge. He was
subsequently sent to Gwalior as Excise Commissioner. Recently Shrivastava was
made Managing Director of MP Mandi Board.
According to
those familiar with the MP Agro’s functioning, the two Managing Directors in
their tenures systematically allowed the three holding companies to thrive at
the corporation’s expense. In the bargain, billions of rupees allegedly changed
hands over the last eight years. The corruption acquired a permanent mechanism
with the MP Agro entering into five-year contract with the three companies for
supply in 2012.
While the
companies’ production and turnover increased exponentially, the MP Agro’s role
correspondingly reduced.
In 2005-06, MP
Agro’s manufacturing plant in Badi near Bhopal produced 4775 metric tons of
nutritive food. The production reduced to 1877 metric tons in 2008-09. In the
same period production of MP Agro Nutri Food, one of the three private companies,
grew from 3816 metric tons up to 11,019 tons. Other two companies also
increased their production substantially.
Ironically, while
annual budget for nutritive food continued to increase, the plight of
malnourished children in the state deteriorated steadily.
The budget for
diets was Rs 90. 6 crore in 2004-2005. It went up year after year to touch Rs
1200 crore in 2015-16. But the annual budgetary growth miserably failed to
address malnutrition.
At present, the number
of malnourished women and children in Madhya Pradesh stands at roughly 97 lakhs
in the state’s 8 crore population.
Given stunning enormity
of the mismatch between the budgets and benefits to the targeted beneficiaries,
it is not difficult to surmise that political patronage from the top emboldened
the two Managing Directors to subvert the system with gay abandon.
According to
sources, a gang of well-entrenched officers in the MP Agro played the role of
facilitator for three private companies. That the gang had backing of the Managing
Directors goes without saying. Of the gang, four officers stand out from the
rest. They are MP Agro general manager Ravindra Chaturvedi, nutrition in charge
Venktesh Dhawal, ICDS officers Akshay Shrivastava and Harish Mathur.
Chaturvedi, who
joined the MP Agro in 1984 as deputy manager, has been on the forefront in
thwarting every move to bring transparency in the corporation. He was appointed
director in the contracted companies as the MP Agro representative. Despite several department enquiries, he
enjoyed full blessing of the MDs and acted as an interface between them and the
company owners. Dhawal, who sets MP Agro’s agenda for food manufacturing and
supply, had retired on June 30. But MD SK Mishra retained him by reappointing on
contract.
The July income
tax raids covered premises of Chaturvedi and Dhawal.
Raids were also
conducted at the premises of nutritive food suppliers Sunil Jain, Hridyesh
Dixit and Avadhesh Dixit. The Dixit brothers also own a media group. Besides,
Jain and Dixits have also invested a substantial sum in real estate business in
the name of Shrikrishna Devcon Private Limited. The company has housing
projects in Indore and Mumbai. The investigation wing seized large
volume of documents from 30 locations of MP Agro Industries, MP Agro Nutri
Foods, MP Agrotonics, Indo Den Food, Shri Krishna Devcon Limited, (SKDL),
Global Group and their allied companies situated in Indore, Barwah, Bhopal and
Mumbai.
Sunil Jain and Mukesh Jain are directors in MP Agro Nutri Foods.
Avadhesh Dixit heads Global Group which deals in real estate.
All the three families and the companies they run have close
financial ties, documents accessed by income tax department revealed. Together,
the three families are into three types of businesses. Besides supplying
cereals to Anganwadis and developing real estate projects, they have entered
into renewable energy sector
Although the income
tax raids were essentially conducted to unearth tax evasion, the documents
seized by the sleuths turned out to be damning evidence of the massive
corruption jointly indulged in by the MP Agro bureaucrats and the three
companies.
The income tax
department has concluded its operation after making the Dixit brothers’
companies to surrender Rs 50 crore. Hridyesh Dixit alone surrendered Rs 5 crore
after much dilly- dallying.
But follow-up action
on the Income tax department report by the state government is still awaited.
AK Jaisawal,
director general, investigation, Income Tax (MP) says the department has sent
information about irregularities in quality of nutrition food to the concerned
department.
MP Agro managing
director SK Mishra says that the corporation will act against the officers covered
in the raids after the income tax report is received. The officers –Chaturvedi
and Dhawal—were MP Agro nominees in the MP Nutri Food company, whose premises
were raided.
Two months have
elapsed since the I-T operation but no action by either the state government or
the MP Agro has followed.
Although the Women
and Child Development Minister Archana Chitins has promised that “ no one will
be allowed to get scot free for eating up the nutrition meant for the children”, her department has not taken any
initiative so far. Chief Minister Shivraj Singh Chouhan has not spoken a word
on the massive operation that blew the lid on the Dalia scam.
Notwithstanding the
government’s attempts to shield the guilty, a sordid saga of corruption has followed
in media on the trail of the income tax raids.
And the details
suggest that thousands of state’s children may have survived severe
malnutrition if a corrupt Shivraj Singh Chouhan government had not let a nexus
of politicians-bureaucrats-contractors rob billions of rupees meant for their
diets served at the state’s nearly Anganwaris. Culpable genocide of the
survivable kids has been the tragic outcome of the wanton avarice of the nexus
comprising successive Women and Child Development (WCD) department ministers
and bureaucrats of the MP Agro, besides owners of three nutritive food
manufacturing companies.
The state’s WCD department
allocated a whopping Rs 7800 crore to the MP Agro to get nutritive food
prepared for distribution to malnourished children through Anganwaris over the
last 12 years. The MP Agro, in turn, got the nutritive prepared in the
manufacturing units of three companies—MP Agro Nutri Food, MP
Agro Food Industry and MP Agrotonics Limited.
Chief operators
of the four entities together allegedly compromised both quantity and quality
of the nutritive food to as high as 60%, according to an expose by Dainik
Bhaskar.
Simply put, they
mutually conspired to gobble nearly 60% of the allocated fund—roughly Rs 4680
crore—which could have prevented thousands of avoidable deaths of malnourished
children.
Statistics of
malnutrition deaths in Madhya Pradesh for the first six months of this year
alone reflect enormity of the massive crime against humanity, not to mention
corruption.
Between January 1
and June 30 this year, 9167 children died of malnutrition in the state. Maximum
78773 malnourished children have been identified in tribal district of Dhar,
followed by Badwani (58,781) and Alirajpur (40,107). Even in the state capital,
Bhopal, number of malnourished children in the 0-6 age group is over 26000.
In the last six
months maximum 587 malnutrition deaths were reported in Bhopal, followed by Badwani(
537), Balaghat ( 268), Betul ( 332), Chhatarpur (219), Guna (200), Jabalpur (
276), Jhabua (251), Katni (212),Morena (226), Satna ( 346), Sehore (236),Seoni
( 256), Shivpuri (211), Ujjain ( 301) and Vidisha (341).
Many of these
deaths could have been avoided had the Woman and Child Development department
ensured strict monitoring of quality and quantity of the supplied food items.
Quality check is
a mere formality. Only recently, food packets of expired date were recovered in
Rewa district. Food manufactured in January was being distributed in June.
As per the ICDS
instructions, each normal child is entitled to get food worth Rs 6. For women
it is Rs 8 per head and for a malnourished child Rs 9 per head. But the
instructions are mostly followed in the breach for want of strict checking
mechanism being in place.
The food supply
system has a vast network of district project officer in each of 51 districts, 453
block level projects and 3100 supervisors. Each
supervisor has 25 Anganwaris
under his/her jurisdiction. They are supposed to send demand at higher level
based on actual requirement.
But corruption
starts from the lowest level. For example, if an Ananganwari sent demand for
one gunny sack of food items, the demand is multiplied by up to four times at
the woman and child directorate level in Bhopal. Inflated demand helps fudging
billing and payments.
Practice of
undersupply of the food packets is also rampant. Suppose two trucks of material
is despatched from Bhopal. It will be shown as four truck material. The
directorate will make payment for four trucks on the basis of forged receipts.
Another means of
corruption is misreporting of children in Anganwaris. On paper, each Anganwari
has 100 children registered but in most of them hardly 20 to 25 children are
fed. However, billing for food is made
for 80 to 90 children.
Bogus billing in transportation
is yet another way to make illegal profit. Normally, transporters rate is Rs
one to Rs 2 per kg of food supply. But most of them charge as high as four
times the stipulated rates. The difference in the billing is shared by
transporters and officials from bottom to top.
All bills for
supply are cleared by the directorate. Rules provide that bills up to Rs 2.5
crore will be cleared by the directorate. For bills exceeding this amount, files
will move to the finance department. To avoid sending files to the finance department
bills of higher amount are split in such way that each bill does not exceed the
limit of Rs 2.5 crore and thus gets cleared at the directorate level itself.
For a callous
state government such an endemic malnutrition and resultant deaths may be cold
statistics. But viewed against the backdrop of the revelations that followed
the income tax raids, a chilling narrative of corruption, conspiracy and
defiance of the Supreme Court order emerges.
The
narrative goes like this.
Madhya Pradesh
is, historically, the most malnourished state in India. The government of India
and World Health organisation (WHO) send huge money every year under various
schemes, particularly under the Integrated Child development scheme (ICDS) to mitigate
the problem. State’s WCD department also earmarks substantial amount to provide
diets to malnourished children and pregnant mothers through Anganwaris. The
huge fund attracts contractors. The WCD department enters into contracts with
them for supplying readymade nutritive food, mostly Dalia, to the Anganwaris.
The arrangement spawns massive loot which contractors share with venal WCD
ministers and bureaucrats. Baring sporadic complaints of corruption in the
media from time to time, the nexus endures even as millions of children and
pregnant mothers remain malnourished or
even die due to this for want of adequate diets.
Gradually, the
corruption in centralised nutritive food supply becomes too endemic across
India for certain public spirited non government organisations (NGOs) to keep
quiet. They petition the Supreme Court for directive. The apex court in
October, 2004, rules against the centralised, contractual system of nutritive
food supply to Anganwaris. Instead, the
court orders the state governments to deposit the fund meant for the diets in
the joint accounts of Anganwari workers and presidents of the self-help groups (
SHGs) working at the grassroots level.
The court verdict
jolts the contractor-WCD officialdom’s monopolistic control over the funds
meant for Anganwaris. By the time the court verdict comes, the BJP government
has ousted the Digvijay Singh-led Congress government. A new set of contractors
is jockeying for nutritive food manufacturing and supply. Their lobbying
succeeds. They manage to make the WCD minister sit on the Supreme Court order
for two and half years. But defiance of the order for long is not possible in
the face of the NGOs who are warning to move contempt petition in the Supreme
Court.
Eventually, the WCD
minister implements the court order in January 2007 only to revert to the old
arrangement a year later.
So, since 2007
till now the restored centralised system continues to work till the income tax
raids in July exposes the scam.
On the face of
it, the narrative looks uncomplicated. However, when we insert dramatic
personae and their roles in it, enormity of the scam would appear
mind-boggling.
Let us take first
take Dixit brothers whose 20 premises in Bhopal, Indore and Mumbai were raided by
a 300-strong team of income tax department sleuths. They own MP Argo Nutri Food,
one of the three companies in joint venture with the MP Agro. Situated in
Mandideep near Bhopal, the company’s turnover is said to be Rs 100 crore,
though in the I-T sleuths’ estimation it could be much higher.
Hridyesh Dixit,
the billionaire owner of several companies, had started off his career in late
1989 as a journalist with Rs 450 salary in a small newspaper in Indore. . Both
his father Mohanlal and mother Shanta Devi were school teachers in Indore where
the would-be billionaire grew up in a lower middle class milieu.
Sauvé and
ambitious, Hridyesh started to make a mark as a reporter and, four years later,
he joined Dainik Bhaskar in Indore.
A year later, he
moved to Bhopal in the same newspaper.
In the state capital, his ambitions to rise in journalism began to sour
as he made contacts with politicians and bureaucrats. The corrupt ecosystem in
Bhopal was too alluring for him to resist. He showed no qualms in leveraging
his burgeoning contacts to feather his nest. The shameless quest for make-it-rich-by-any-means
endeared him to the owners of the publications wherever he moved as journalist.
In Bhaskar, Hridyesh
was a darling reporter for the owner Sudhir Agrawal. Dixit maintained his flair
for endearing himself to owners as he moved from Bhaskar to electronic media
–first in the Zee News and then Sahara. The success stories of Subhash Chandra
and Subrat Roy inspired him to become a media owner himself.
By 2010, Hridyesh
had earned enough money to start his own evening paper Pradesh Today from
Bhopal. In the last six years, the paper has eight editions in MP,
Chhattisgarh, Rajasthan, Uttar Pradesh, Delhi and Gujarat.
“ It was my
ambition to become a media king and not remain just a journalist. My dream is
to make my media house number one in India with multimedia ownership,” Hridyesh
told a Bhopal-based website Bichchu.com which did his profile sometime back.
Phenomenal rise
of an ordinary reporter to a billionaire media baron in two decades has dazzled
not only journalists but also political and bureaucratic circles. The
astonishing journey is also reflective of the acute susceptibility of the BJP
government to corrosive manipulation by unscrupulous people. Hridyesh stands
out as one of the shrewdest manipulators of the system.
While still a
journalist, Hridyesh had got into the supply business with the state
government. His thick relations with the then health director Ashok Sharma
helped Hridyesh enter into the medicine supply network. Hridyesh roped -in his
relatively low-profile brother Avadhesh into the drug supply.
But a series of
income tax raids at the premises of those linked to a multi-crore drug supply
scam in 2008 forced the Dixit brothers to look for other channels for making
money. The raids were conducted at the premises of Hridyesh Dixit apart from
the then Home Secretary Rajesh Rajora , the brother of the then Health
Minister, Ajay Vishnoi, health director Ashok Sharma and many others. Ashok
Sharma was later dismissed. Sharma is said to be Dixit’s business partner in
the media group.
Having been
blacklisted by the Health department, the Dixit brothers focussed on
manufacturing and supply of nutritive food .
Initially, their quantum of supply order was small. But, by and by, they
manipulated the system in such a way that within a few years their company MP
Nutri Food became one of the three main suppliers of nutritive foods.
Kusum Mahadele ,
the then WCD minister played a major, if dubious ,role in ensuring that the
contractors such as Dixit brothers and others do not lose their ride on gravy
train due to the Supreme Court’s order in October 2004 directing decentralisation
of the food supply chain.
Ms Mahadele, who is now jail minister in
Shivraj cabinet, sat on the court order for two and half years.
In January 2007,
the then leader of opposition late Jamuna Devi raised objection to the Supreme Court
order in the state assembly. The Congress
leader, who was WCD minister in the Digvijay Singh cabinet, protested the
provision of depositing money for diets into joint account of Anganwari workers
and self help groups. Her contention was that government fund cannot be
transferred into the accounts of non government persons. Jamuna Devi’s
contention was music to Kusum Mahadele’s ears. The minister promptly promised
the Congress leader to do her bidding.
Ms Mahadele’s department implemented the
minister’s assurance in the house within eight days. In her alacrity to
implement the order, the minister did not bother to put up the decision before
the state Cabinet for ratification. Nor did she seek mandatory approval for the
same from the finance department.
Interesting, the WCD
cited another Supreme Court order to justify reversion of the court’s previous
order for decentralisation. The supreme
court in 2007 had ruled that in the interest of the targeted children, it was imperative
that tenders for nutrition supply were not invited every too often.
The court order
not only came handy for the WCD department to restore the centralised supply
system but also to involve the MP Agro in the supply chain.
Soon, the MP Argo
signed contract with the three manufacturing companies. It was also decided
that the MP Agro will start its own plant but the idea was shelved under
pressure of the contracted companies.
Centralised
supply system was steeped in corruption. As a result nutritive food reached both
in less quantity and in poor quality in Anganwaris.
Social activist
Sachin Jain says contractors and private companies have dominated food supply
to Anganwaris from the very beginning in
contravention of the Supreme Court’s 2004 verdict.
Jain, who was
appointed advisor to the Supreme –Court-appointed commissioners for study of
malnutrition in Madhya Pradesh, points out that his NGO had moved to the Madhya
Pradesh high court aganst the WCD department decision to retain the old
contractual system.
“ On our petition
the state government assured the court that
it was ready to ensure supply of food items through self help groups for
four days in a week. But that assurance was not followed,” Jain recalls.
As complaints about inadequate supply from
project officers at block to district levels reached the Integrated Child Development
Scheme office, a senior officer drew the state government’s attention to
irregularities in 2008.
In his note-sheet
the officer pointed out to the state government gross opaqueness in the supply
system. He also raised suspicion over the dubious manner of payments to the
companies. The note sheet created flutter in the bureaucrat-contractor nexus
which succeeded in getting the officer removed, using political clouts.
Ranjana Baghel,
who is now state BJP vice president, succeeded Kusum Mahadele in 2008 as WCD
minister. The new minister protected the nexus with more vigour than her
predecessor. She vehemently scuttled an attempt of an ICDS officer to bring
transparency in the system.
The officer had
said in a note sheet in 2008 that supply of the food items be handed over to
districts so that they could decide quantum of food distribution on the basis
of actual requirement from each Anganwari under their jurisdiction.
The minister’s
angry response to the officer’s request was that he was creating obstacles in
smooth functioning of the system which was improper. That was the last –and
unsuccessful—attempt to put the corruption-ridden system back on track.
Tinu Joshi, the
infamous IAS officer presently in jail, went a step further in favouring the
three companies.
During her tenure
as Principal Secretary of Woman and Child Development department in 2010, the
tender contract was changed as per the company's wishes.
" During a meeting, she instructed the department officials not to indulge in politics over tender specifications. She instructed to change the share to 30:70 from 51:49 per cent," according to a senior official of the department.
During her tenure, the manufacturers used to test their samples in their own labs, which as per Central guidelines should be tested by the Food and Nutrition Board (FNB). The officer appointed to examine the food quality never reported any lapses.
" During a meeting, she instructed the department officials not to indulge in politics over tender specifications. She instructed to change the share to 30:70 from 51:49 per cent," according to a senior official of the department.
During her tenure, the manufacturers used to test their samples in their own labs, which as per Central guidelines should be tested by the Food and Nutrition Board (FNB). The officer appointed to examine the food quality never reported any lapses.
In
February 2010, IT teams recovered Rs 3 crore cash from the house of Tinu and
her IAS husband Arvind Joshi. The two officials were suspended and their
services terminated. They are currently in jail.