No action yet against officials for graft

BY V L Srinivasan

Published on July 13, 2006

Hyderabad: IN a blatant violation of procedures, two officials of the Hyderabad City Grandhalaya Samstha (HCGS) had parked Rs 27 crore in 14 banks at a lower rate of interest causing a loss of Rs 27 lakh to the exchequer for the last one year.

The officials – Director of Public Libraries S Ravi Kumar and HCGS Secretary Alivelu – deposited Rs 27 crore in nationalised banks at the rate of interest ranging from 5.5 to 7 per cent. The banks include Andhra Bank, State Bank of India, State Bank of Hyderabad and UCO Bank.

The sum obtained through library cess was meant for the development of public libraries. While more than Rs 10 crore was deposited in a bank which offered a minimum interest of 5.5 per cent, only Rs 1 crore was kept with a bank which offered a maximum interest of 7 per cent per annum.

The Vigilance and Enforcement officials, who probed the case, submitted their report to the Andhra Pradesh Vigilance Commission in April this year confirming that the two officials committed irregularities.

The commission, in turn, recommended to the State Government to suspend the two officials immediately. However, the State Government has not taken any action against them so far based on the findings.

While Ravi Kumar is still holding the same post, Alivelu was posted at the State Central Library as Gazetted Librarian. The funds have not been withdrawn from the banks offering lower rate of interest.

According to sources, the two officials parked the funds in 14 banks instead of three violating the AP Public Libraries Rules and GO Ms No. 21 of July 2, 2002. As per the rules, the Zilla Grandhalaya Samsthas (ZGS), after securing the nod of higher-ups, can deposit the amount not required for immediate use, either in a savings bank account or in government securities.

No department, undertaking, agency or cooperative shall have deposits or bank accounts in more than three banks. ‘‘The proposal submitted by Alivelu to deposit Rs 27 crore in 14 banks and the approval given by Ravi Kumar were in violation of the AP Financial Code, AP Public Libraries Rules and GO Ms No 21,’’ sources told City Express.

In a letter to the State Government in April this year, AP Vigilance Commissioner R C Samal said the officials had ‘colluded’ and deposited huge amounts in banks at a lower rate of interest. He also recommended the suspension of the two officials and asked the department to frame charges against them for the misconduct of depositing surplus funds in the banks offering lower rates of interest.