02 December, 2020

Behind The Plot

Behind The Plot
outlookindia.com
-0001-11-30T00:00:00+05:53

THE scam in Assam’s veterinary and animal husbandry department first came to light in 1993 when the state finance department discovered excess withdrawal from various treasuries across the state. Alarmed at the development, the Hiteswar Saikia government asked K.S. Rao, then additional chief secretary, to probe the matter. Rao discovered that fraudulent withdrawal in excess of Rs 200 crore had taken place in the veterinary and animal husbandry department alone—all between 1986 and 1992.

The state government promptly referred the fraud, which popularly came to be known as the LoC (letter of credit) scam, to the CBI even as 56 officials and several contractors were found to be involved in the fraudulent deals.

The one-man inquiry committee discovered that the system evolved by the culprits to hoodwink the government was rather simple. Since all state government payments are made by treasuries after receiving LoCs from respective departments, the racketeers forged the LoCs by involving officials from all departments concerned. The beneficiaries...

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