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'Rs 10,000 Crores': In a Poll Year, a PDS Scam Once Again Poses Corruption Hurdle for TMC

author Joydeep Sarkar
Jan 11, 2024
As the critical general election approaches, the situation, involving thousands of crores, adds to the embarrassment for chief minister Mamata Banerjee and senior TMC leaders.

Kolkata: On January 8 (Monday), the Enforcement Directorate (ED) alleged extensive corruption within the West Bengal public distribution system (PDS) scam. ED sources estimated that a single suspect, Shankar Adhya, the former chairman of Bongaon Municipality and a close aide of the arrested minister Jyotipriya Mallick, could be responsible for embezzling up to Rs 10,000 crores.

As the critical general election approaches, the ration scam, involving thousands of crores, adds to the embarrassment for chief minister Mamata Banerjee and senior TMC leaders.

According to ED submissions, Adhya played a direct role in laundering approximately Rs 10,000 crores through foreign currency trading and exchange in the border areas of the state, with nearly half of that sum stemming from the ration distribution scam. The agency claimed in court that Adhya managed to smuggle out over Rs 2,500 crores to Dubai through forex trade.

Sheikh Shahjahan, the other key suspect, remains at large despite an ED look-out circular (LOC) issued for him. The LOC was issued after an armed mob attacked investigating agencies during a raid in Sandeshkhali, North 24 Parganas, last Friday (January 5). 

What is the ration scam in West Bengal?

During the COVID-19 lockdown in May 2020, protests erupted in West Bengal over alleged irregularities in the distribution of PDS grains.

A first information report (FIR) was filed in Nadia district. Then-governor of West Bengal Jagdeep Dhankhar (now vice president), and the central government had criticised the state’s handling of the PDS. On April 23, 2020, the Centre informed the state that food grain distribution was non-existent under the Pradhan Mantri Garib Kalyan Anna Yojana (PMGKAY).

Also read: In Bengal’s Sandeshkhali, Controversial TMC Leader Sheikh Shahjahan’s Hold Is Powerful

According to the Indian Express, under PMGKAY, each ration card holder was entitled to 5 kilogram of food grains and 1 kg of pulses, in addition to the monthly quota of 5 kg of subsidised food grains per person under the National Food Security Act (NFSA). Investigations revealed that an influential businessman, Bakibur Rahman, supplied rice and wheat in insufficient quantities to fair price shop distributors.

Bakibur, allegedly supported by Mallick, a powerful minister close to the chief minister, profited by selling the excess grain in the open market.

ED sources claim that flour mill owners supplied less flour to distributors than paid for by the government. Mill owners claimed that for the price of 1 kg of flour, government suppliers received only about 600 grams. Approximately 30% of the PDS ration intended for beneficiaries in West Bengal was redirected to the open market. In collaboration with some local leaders from the ruling party, rice millers created fake bank accounts for farmers, siphoning off the minimum support price (MSP) earmarked for paddy growers. Rice millers earned nearly Rs 200 per quintal for grains that government agencies were supposed to procure at MSP from farmers, of which, a significant percentage had allegedly to be shared with Mallick, who oversaw the Food and Supplies Ministry in the previous TMC government from 2016 to 2021. 

While Partha Chatterjee, another major leader currently in jail, had to lose his portfolio after his involvement in the job recruitment scam came to light, Mallick continues to remain a minister holding key position in the cabinet. Similarly, Shahjahan and Adhya, crucial figures in TMC’s electoral strategy in North 24 Parganas, continue to enjoy party support despite being confronted with accusations spanning from financial misconduct to homicide.

Recently, Shovandev Chattopadhyay, a seasoned TMC leader, cautioned that ED officials can anticipate similar resistance from TMC student activists in the days ahead, leading to public outcry.

During the panchayat elections in 2013, 2018, and 2023, opposition parties struggled to field candidates in the Sadeshkhali blocks, where Shahjahan wields significant political influence. Likewise, Adhya’s influence in the Matua-dominated border areas near Bangaon became evident when ED officials encountered resistance from his supporters. Following his arrest, many locals came forward and disclosed his involvement in corruption, intimidation, and violence to the local media.

“The corruption in ration distribution poses a threat to the TMC organisation as there are tens of Shahjahan within the party. Their potential arrests could exert pressure on the party, leading to a cascading effect on its influence,” observed political analyst Biswanath Chakraborty. 

Also read: TMC May Have Sacked Partha Chatterjee, But Its Problems With Corruption Run Deep

As part of the collusion, ration dealers were compelled to contribute a portion of their monthly earnings to the local syndicate in exchange for the windfall. The Wire spoke to a ration dealer in Murshidabad, whose identity is being withheld for protection. The dealer said, “The amount of money we’re paying as bribe and commission to the local syndicate kept on increasing. Many of us felt the dealership was not profitable anymore. I applied three years back to return my licence, but it was not accepted.”

“We are a family of five, each with ration cards. Yet, we receive only 12 kgs of rice every month from the ration shop. I use ration cards from other families who do not want to eat this rice, but are eligible for rations. I pay them Rs 25 per kg for their share,” said Tapan Roy, a part-time transport worker from Dhupguri in North Bengal. 

In 2007, during the tenure of the Buddhadeb Bhattacharjee-led Left Front government, protests erupted over alleged irregularities in the public distribution system. One of the demonstrations, marked by violence, resulted in the death of Ayub Sheikh, a protester, in a clash with the police.

The Wire recently visited Ayub’s family, who now claim to have received insufficient rations. Jhunafa Bibi, Ayub’s wife, said, “Sometimes the rice arrives in a month, sometimes it doesn’t. Kerosene is unavailable. Previously, lentils were accessible; now there are none. Wheat flour arrives irregularly, and the quality is very poor!”

Translated from Bangla to English by Aparna Bhattacharya.

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