A multi-crore rupees scam in distribution of government aid to the people for business under the Khadhi and Gramudyog had galored in Western Uttar Pradesh. An application under the Right to Information (RTI) Act revealed that how in connivance with the staff of the Office of Cooperative Societies, several crore rupees has been shown distributed to the firms which are reportedly just on papers. Shocked with the disclosure, now Information Commissioner, Hafiz Usman, claimed to have ordered an high level enquiry under Principal Secretary (Khadhi and Gramudyog). Usman said that he suspected that not just in Western UP, but similar swindling of government funds under the name of promoting young entrepreneurs, has been done in the entire State. Usman said that what is more surprising that the matter so far taken up by him pointed that the officials were themselves involved in the racket.
Giving details of the matter, Hafiz Usman said that government is providing loan to young unemployed entrepreneurs from banks to make them self-dependant by starting business under the Khadhi and Gramudyog Department. To forward the financial assistance of maximum of Rs 25 lakh, the Department invite applications from the firms who were registered by the office of Registrar of Firm Societies and Chits. While the general candidates were charged just 4percent interest against the loan after cutting the subsidy (given both by Centre and State) amount, the reserved class were given many other incentives on the loan. It may be mentioned that in some categories, 20 per cent of the loan amount has been given by the Centre, and 30 percent was given by the State.
Usman said that taking the advantage of this facilities forwarded both by the Centre and State, many fake firms took loan. He said that applications filed in Moradabad, Bijnore and other Western UP, pointed that several crore rupees of loan amount has been issued to the firms which were just on papers. He said that primarily enquiry pointed that staff members of the Khadhi and Gramudyog Department as well as Registrar of Firm Societies and Chits, had shake hands and get the loan which included government subsidy sanctioned in the firm which had fake names, addresses etc. He claimed that what is surprising that when the details of members of the firm (like their addresses, identity, bank details) has been sought by the Department, they failed to provide it which pointed a deep-rooted conspiracy between the staff members of Khadhi and Gramudyog Department as well as Registrar of Firm Societies and Chits, so he decided to get an in-depth probe made in the matter and had directed the Principal Secretary of Khadhi and Gramudyog Department, to make a probe and submit his findings within a month so further necessary action could be taken.