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"Out of 1410 units established under SFCP, 305 were non-existent"
Ex-CM failed to take action on inquiry report of SKEWPY scam
3/24/2015 12:23:17 AM
Akshay Azad
Early Times Report
Jammu, Mar 23: Former Chief Minister Omar Abdullah had failed to initiate action against the outcome of an inquiry, exposing a scam, according to which out of 1410 units established by entrepreneurs under Seed Fund Capital Scheme (SFCS) under Sher-e-Kashmir Employment and Welfare Programme for Youth (SKEWPY), 305 were found non-existent.
Surprisingly, the inquiry was ordered by Omar himself but when the report of inquiry committee was finally submitted by Department of Employment to the government, he had not taken any further action.
Pertinently, SFCS was launched as part of the government's initiative to provide employment opportunities to the youth of the state under SKEWPY on December 5, 2009. The scheme is being implemented by J&K Entrepreneurship Development Institute (JKEDI).
According to the documents available with Early Times, Omar vide CM secretariat No HCM/ps/2013-358/Srinagar, dated 13-06-2013-had desired to know the problems and difficulties being faced by all the 2146 entrepreneurs, who had established their units under SCFS.
Accordingly, the Directorate of Employment, vide its order No 152-ED of 2013, dated 13-6-2013, had constituted two committees, one at district level to conduct an extensive study of all the cases disbursed by the J&K Bank under SCFS across the state, and the other at provincial level to conduct a sample survey of 15 pc of the said cases in the respective provinces.
During the inquiry, it was found that since the inception of SKEWPY on December 5, 2009, a total of 1410 cases were reportedly disbursed loan under SFCF scheme, which were forwarded by JKEDI. Out of these 1410 cases, 1080 entrepreneurs' cases were disbursed in Kashmir province while only 330 cases were disbursed in ten districts of Jammu province.
During the physical inspection of these units established under SFCF, the inquiry team found that out of total 1410 cases surveyed, 982 units were actually established besides 305 were non-existent and 123 were under establishment.
Moreover, another startling fact came to fore, revealing that against the claims of JKEDI of providing employment to 11948 persons, only 3286 persons were provided employment. This has belied the JKEDI claims and needs to be probed.
Moreover the inquiry report also found that in the twin capital districts of Srinagar and Jammu, 49.07% of the cases were disbursed under the scheme, reflecting the urban centric approach of the scheme.
"JKEDI does not seem to have an established mechanism to conduct pre-sanction survey as it has been observed that already-established units/ family-owned traditional business/ activities, especially in the handicrafts and handloom sector have been covered under the scheme. The beneficiaries in such cases have utilized the funds only to extend their existing business units. This trend has defeated the spirit of the scheme of providing financial assistance to the first generation entrepreneurs in the core sectors of economy", the report says.
Interestingly, instead of taking action on it, the inquiry report was either thrown into the dustbin or has been gathering dust in the civil secretariat. The erring officials who were involved in this scam, are yet to be punished.
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