The Union Government has launched a nationwide crackdown on industries using urea meant for farmers and a special flying squad of the Chemical and Fertilizer Ministry is taking strict action.
The Chemical and Fertilizer Ministry said that urea is used in various other industries viz UF resin/glue, plywood, resin, crockery, moulding powder, cattle feed, dairy, industrial mining explosives and centre is getting references indicating diversion, black marketing, hoarding and supply of sub-standard quality of subsidized fertilizers by various private entities.
“The Department of Fertilizer (DoF) has identified IGU supplier’s GST evasions worth Rs 63.43 crore. Rs 5.14 crore have been recovered so far,” said the ministry.
Unaccounted stock of agriculture grade urea of about 25,000 bags worth Rs 7.5 crore has been recovered and six people have been arrested under the CGST Act, 2017 and have been remanded in judicial custody.
Based on the iFMS records, the DoF identified, located and then inspected 38 mixtures manufacturing units across eight states on April 30. At least 70% samples were found substandard and the manufacturing licences of 25 erring units were cancelled.
The government launched a multipronged nationwide crackdown on diversion of fertilizers in 52 units across six states on May 20. Unauthorised urea stock of 7,400 bags (worth Rs 2.22 crore) was seized. Of the 59 samples of suspended urea collected from these units, 22 were found to have neem oil content so far. Seven FIRs were registered against units involved in illegal activities.
On July 9, the DoF conducted raids on 23 mixture manufacturing units in Gujarat. Fifteen samples of nine units have been sent for quality analysis and action shall be taken against erring companies after reports. Stop sale notices have been issued against two units and fertilizer has been seized.
The ministry said a leakage worth more than Rs 100 crore has been identified by various operations during the past few months.
The DoF has constituted a special team of dedicated officers, Fertilizer Flying Squad, for regular surprise inspections of fertilizer and related units involved in diversion, black marketing, hoarding and supply of sub-standard quality of fertilizer.
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