Irregularities detected in showrooms

THE REVIVAL plan of UP Handloom Corporation seems to be in peril after the inspection of the showrooms by a team revealed some eye-opening facts about the irregularities and the way guidelines to enliven the ailing body were flouted.

If findings of probe team to be taken into consideration seriously, then it may be mentioned that a government owned corporation is being run as private owned company by few senior officials, including tainted one.

The special investigation team was constituted on December 5, 2005 to carry out surprise checks at few selected showrooms in Bangalore and Mumbai region. The team headed by a senior manager production SP Singh and assistant manager accounts DK Awashthi of corporation noticed serious irregularities.

The team found common irregularities in all four showrooms and none of the showrooms’ officials followed norms issued by the headquarters for accounting and quality control of goods being sold from showrooms.

Few common irregularities noticed by the team were that regional marketing managers, who had been empowered for sale and purchase activities of all showrooms under their region as per new decentralised purchase procedure introduced for revival schemes, failed to carry out their duties according to norms. Therefore, they fail to certify entries made in the purchase register held by the showrooms as per rule, besides the payments to suppliers were made without ensuring quality of the products supplied by them. The purchasing of products for sale from showrooms was made much more than the released amount for purchase from headquarters to these showrooms.

While carrying out inspection at a showroom located at KG Road, Bangalore, the team observed that one of the Handloom Industry from Meerut was enrolled with assistant director Hathkargha Meerut for printing of cloths. However, items belonging to weaving category of Jacord (plan towel, tapestry wall paper) had been supplied by it. In the same way, some other Handloom factory too were allowed supply the goods. Irregularities also noticed at Sahkari Samiti.

At Malleshwarm showroom, team observed that towel purchased were defined with their actual size, however, they were mentioned according to their quality as No-1, 2, 3. The items supplied by a firm from Etawah were found costlier than purchased under earlier consignment scheme (in which items were purchased on credit) from local market.

In Mumbai region also, similar observation were made while carrying out inspection at showroom of Avid Road, Hydrabad.

The members of team suspected foul play and made remarks that firm of Murad Nagar dispatched the consignment in advance through transport, however bills were prepared on following day.

During the inspection at Bhopal showroom, team noticed the common problem of not following norms. Besides, a firm registered with assistant directorate of Hathkargha, Meerut for printing was ordered by regional manager to supply terry towel and size of the same was mentioned. One of the firm of Murad Nagar has sent consignment a day before their billing, the team suspected foul play in the act.

Few blank cheques of PNB duly signed by the regional marketing manager (RMM) were also found at TT Nagar showroom, Bhopal.

Managing director (MD) of UP Handloom Corporation Shyam Lal, while talking to Hindustan Times said that RMM of Mumbai region RK Mishra had been suspended by earlier Managing Director Chanchal Tiwari, however, he was taking the stock of the functioning of the corporation and would take note of the irregularities.