Audit shows gaps in DBT scheme of Chandigarh food supply dept

The audit report highlighted issues related to the direct benefit transfer (DBT) scheme, claiming of reimbursement from the UT administration instead of the Centre under the Pradhan Mantri Garib Kalyan Anna Yojana (PMGKAY) and Atma Nirbhar Bharat (ANB) scheme and “non-compliance” with the legal metrology rules

The Director General of Audit (Central), Chandigarh, has identified several irregularities in the functioning of the UT department of food supply, consumer affairs and legal metrology.

RK Garg, who obtained the report under the RTI Act, said the Chandigarh administration should establish a mechanism to monitor responses to the audit objections. (HT)

The audit report highlighted issues related to the direct benefit transfer (DBT) scheme, claiming of reimbursement from the UT administration instead of the Centre under the Pradhan Mantri Garib Kalyan Anna Yojana (PMGKAY) and Atma Nirbhar Bharat (ANB) scheme and “non-compliance” with the legal metrology rules. The audit covered the period from April 2020 to March 2024.

In the financial year 2023-24, a budget of ₹2.98 crore was allocated which was fully utilised. The department of food supply, consumer affairs and legal metrology of the Chandigarh Administration operates under the supervision of the director, supported by a district food and supplies officer. The food and supplies wing manages the direct benefit transfer scheme (implemented in September 2015), under which cash subsidies for public distribution system (PDS) foodgrains are transferred directly into the Aadhaar-linked bank accounts of beneficiaries. The legal metrology wing carries out activities such as stamping and verification of weights and measures used by commercial establishments, auto/taxi fare meters, weighbridges, stamping/sealing of dispensing units of petrol pumps, dispensing units of CNG/LPG pumps and checking net contents of LPG at bottling plants or retail outlets.

RK Garg, who obtained the report under the RTI Act, said the UT administration should establish a mechanism to monitor responses to the audit objections.

Gaps in direct benefit transfer scheme

The UT department of food supply, consumer affairs and legal metrology operates the DBT scheme under the National Food Security Act (NFSA), Government of India, covering around 3.5 lakh beneficiaries. The eligibility criteria specify an annual family income of not more than ₹60,000 for the Antyodaya Anna Yojana (AAY) beneficiaries and ₹1,50,000 for the Priority Household (PH) beneficiaries. During the audit, it was found that the income criteria for enrollment are verified by the area inspector through physical verification, but no conclusive criteria exist to fully ensure reliability.

The audit revealed that the department conducted only three inspections during 2020-23, with none in 2023-24. Periodic inspections are necessary to identify any increase in beneficiaries’ income over the years, exclude ineligible individuals and take further action accordingly.

DBT transfers are based on online data. However, if a beneficiary receives benefits under a similar scheme where data is not available online or the server is not operational at the time of verification, there is a risk of duplication. The audit also noted that no documentary evidence was found during test checks to confirm that applicants did not fall under ineligibility conditions. Additionally, a checklist of 11 points was not followed during the checks.

Improper maintenance of laboratories

The audit report noted that during the inspection of records from April 1, 2020, to March 31, 2024, the deputy director of the Regional Reference Standard Laboratory (RRSL), Faridabad, pointed out that no air conditioners were installed in the Secondary Standard Laboratory, which are essential as standard balances are highly sensitive to environmental factors. Instruments for measuring environmental conditions, such as temperature, humidity and pressure, also need to be installed in this lab besides the Working Standard Laboratory. A review of the records showed that no air conditioners or control instruments were installed.

Non-compliance with metrology rules

The Chandigarh Legal Metrology (Enforcement) Rules, 2011, notified the rates for verification and stamping of weights and measures, licensing and renewal fees for manufacturers, repairers and dealers of weights and measures, and security deposits for repairers. During the audit, it was noted that although the department initiated the process to revise the rates in April 2018, the matter remains under consideration with the ministry of consumer affairs and legal metrology, even after more than six years. Additionally, in September last year, the ministry directed the chief secretaries of all states/UTs to amend the State Legal Metrology Enforcement Rules and circulated the revised fee structure for offenses. However, no amendments have been made by the department to date.

Reimbursement claimed from UT instead of Centre

The audit highlighted that the department carried out work related to the lifting and distribution of ration through agencies selected via e-tenders. An expenditure of ₹8,45,84,194 was incurred on the transportation and distribution of ration under the Pradhan Mantri Garib Kalyan Anna Yojana (PMGKAY) and Atma Nirbhar Bharat (ANB) scheme from Major Head 3456-Civil Supplies, but the reimbursement was claimed from the Chandigarh Administration instead of the Central government.

Further, there were instances of substandard ration being distributed to beneficiaries. The department took corrective measures by replacing the substandard ration and initiated action against the firm — National Cooperative Consumers’ Federation of India Limited. The department has paid ₹49,00,000 out of the ₹2,08,23,472 claimed by the firm, but the process for the final recovery of the penalty is still under process.