Posted on Sunday, February 20, 2011 - 11:54 am:

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HYDERABAD: The Small Scale Industries Minister P. Shankar Rao has asked the Vigilance and Enforcement Department to inquire into a 'racket' involving Rs. 600 crore subsidies drawn in the name of Scheduled Castes and Scheduled Tribes beneficiaries.

After finding prima facie evidence during the district tours undertaken by him to verify the ground-level facts, the Minister on Saturday addressed a letter to V. Dinesh Reddy, director-general, Vigilance & Enforcement, seeking a thorough investigation.

At a media conference, the Minister said Vigilance officials would swing into action immediately to ascertain if the industries established in the name of SC/ST beneficiaries with government aid and drawn from finance corporation meant for them, are really owned by them and book criminal cases against the guilty. Over 900 cases were detected wherein upper castes persons claimed Rs. 100-150 crore subsidies to set up travel agencies. He said with a view to encouraging establishment of industries by SC and ST entrepreneurs, the government offered an attractive 40 per cent subsidy on investment or loan taken by them with the benefit subject to a maximum of Rs. 50 lakh.

Some of upper castes persons, however, siphoned off these subsidies approaching the Industries Department or SC/ST finance corporations in the name of the SC/ST beneficiaries. In a majority of the cases, these SC/ST beneficiaries, in turn, were found to be employed for petty jobs by them.

The Minister said two officers, who remained in Industries Commissionerate for more than 10 years, had played a key role in hijacking the subsidies allegedly after taking bribes.

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