The CAG report states that due to improper upkeep of wheat stock over a long period, the quality deteriorated, while shortage occurred due to weight loss, pilferage and exposure to pests. In the disposal of 1.8 lakh metric tonnes of damaged wheat, the corporation noticed shortage of 42,000 metric tonnes. Audit scrutiny of records of seven district offices of the corporation revealed that during disposal of 1.17 lakh MT of wheat from 2004 to 2007, 62 cases of shortage were detected. This figure translates to 21,842 MT of damaged wheat, financial loss of Rs 55.52 crore and shortage of 48.4 per cent. The corporation hardly bothered to analyse the reasons for it. Out of the 62 cases, in 33 each the financial loss was Rs 25 lakh. And, the corporation ordered recovery of Rs 24.73 crore from 31 officials, but only Rs 4.72 lakh were recovered till March last year, said sources.

In four cases, the corporation had filed suits against the delinquent officials for recovery of Rs 6.7 crore, but nothing happened as the employees were taking home a thin pay packet. In another four cases too, the corporation initiated action for recovering Rs 5.25 crore.

The corporation said the wheat stocks were damaged due to their storage on open plinths and non-cemented ground. It was also stated that in many cases, the corporation has filed court cases— which are pending— against the guilty officials for recovery of the money.