Take cognisance of Assam govt's financial irregularities, Congress urges HC
He said the violations, admitted in the state's financial statements, are compounded by systemic irregularities highlighted in Comptroller and Auditor General (CAG) reports, pointing to potential fraud and corruption. Sakia pointed to a debt-to-Gross State Domestic Product (GSDP) ratio of 25.2%.
The AFRBM Act mandates that the fiscal deficit should not exceed 3% of GSDP, with flexibility up to 3.5% for specific reforms, and a revenue surplus.
Saikia wrote that the crisis threatens the economic stability, public welfare, and constitutional rights, necessitating urgent judicial intervention to enforce fiscal discipline and protect public interest. He added that the government's annual budget reports, CAG and Reserve Bank of India's findings reveal a pattern of fiscal mismanagement, including understatement of deficits, misclassification of expenditures, under utilisation of funds, and reliance on costly cash transfer schemes.
'Such practices infringe upon fundamental rights under Articles 14, 19, and 21 of the Constitution...and violate constitutional mandates under Articles 202, 266, and 293, [dealing with the financial matters] warranting suo moto cognisance...under Article 226 of the Indian Constitution,' said Sakia in a letter on Tuesday, a copy of which HT has seen. Article 226 relates to the power to issue writs for the enforcement of fundamental rights and legal rights
Saikia said the state has consistently breached limits between 2019-20 and 2024-25. He added that the fiscal deficit reached 6.50% of the GSDP in 2022-23 against a target of 3.5%. 'The escalating debt, high committed expenditures, and underutilised funds have reduced fiscal space for essential services, increased borrowing costs, and fuelled inflationary pressures, adversely affecting the right to a dignified life under Article 21,' the letter said.
Saikia cited the CAG's 2022-23 State Finances Audit Report and said that the outstanding liabilities have surged by 107.34% from ₹59,425.61 crore in 2018-19 to ₹1,23,214.80 crore in 2022-23. By July 2025, the debt is estimated at ₹1,84,463 crore, based on fiscal deficit trends and net borrowings.
The debt-to-GSDP ratio has risen from 19.21% in 2018-19 to 25.2% in 2024-25, approaching the AFRBM Act's 28.5% ceiling. The annual growth rate of outstanding liabilities (23.32% in 2022-23) significantly outpaces GSDP growth (12.27% annually).
Saikia accused the government of cosmetic accounting practices, such as inflated budget projections and misclassifications, which obscure financial realities and facilitate potential misappropriation. He referred to the non-submission of utilisation certificates for ₹37,991.70 crore in 2022-23.
Saikia blamed cash transfer schemes for exacerbating the crisis. He said the schemes lack transparent cost-benefit analyses, were declared without a vote-on-account, and violate the Constitution. Saikia sought a notice to the state government and direction to the CAG to conduct a time-bound audit within three months on 2024-25 compliance with the AFRBM Act.
Saikia sought an interim stay on the announcement and implementation of new freebie or cash transfer schemes not included in the annual budget, particularly in the lead-up to the 2026 elections, to prevent fiscal strain and electoral misuse.
BJP spokesperson Rupam Goaswami accused the Congress of mudslinging for headlines. 'If they had some proof, they should have filed a PIL [public interest litigation] instead of asking the high court to take suo motu cognisance.' Goaswami said the government is transparent and will continue to implement welfare schemes, taking the state's fiscal health into account.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
&w=3840&q=100)
Business Standard
15 minutes ago
- Business Standard
FMCG distributors' body submits info to CCI in complaint against qcom firms
Distributors of fast-moving consumer goods (FMCG) have furnished additional information to the competition regulator to substantiate their allegations against quick-commerce players. According to sources in the know, the Competition Commission of India (CCI), the regulatory watchdog, has asked quick-commerce players to submit answers to the allegations. Distributors, through the All India Consumer Products Distributors Federation (AICPDF), have said Blinkit owns the highest share of the market with 40-45 per cent, followed by Zepto with 25-30 per cent, and Swiggy Instamart with 20-25 per cent, according to documents seen by Business Standard. 'The dominance of these OPs (opposing parties; in this case, it is quick commerce companies), particularly Blinkit, creates a significant market power imbalance, enabling practices that contravene Section 4 of the Act (abuse of dominance) and predatory pricing.' The additional information said quick-commerce companies had arrangements by which they had bundled delivery service with loyalty programmes or subscription models, which encouraged customers to purchase additional services to access discounts or priority delivery. They cited the examples of Swiggy Instamart offering discounts through Swiggy One membership and Zomato giving promotions through its Zomato Gold membership. They also alleged quick-commerce companies had contracts with suppliers, and such deals often included prioritising stock allocations to their dark stores and reducing supplies to traditional trade. They also complained quick-commerce companies used location-based pricing, by which consumers would get different prices for the same product, depending on where they lived. And, according to them, consumers ordering through an iPhone are charged higher than android users. Frequent buyers are allegedly offered lower discounts whereas new customers get higher. Blinkit and Zepto, they said, offered discounts of 35-50 per cent, pricing products below what distributors offer. The AICPDF had filed a complaint with the CCI on behalf of its president, Dhairyashil Patil, against Blinkit, Zepto, and Instamart in March. A source had earlier told Business Standard the CCI had asked the distributors' body for details on the relevant market share of each of the quick-commerce players in the FMCG sector. It had also sought clarity on whether the FMCG companies had any exclusive agreement for distribution. The CCI, once it receives a formal complaint, can order an investigation if it is satisfied with the information shared. It also has the option to seek comments from the parties named in the complaint or the informant who has filed the complaint before ordering an investigation. Last year, distributors' body wrote to the Ministry of Finance on fund utilisation and fund accumulation by quick-commerce companies and the deep discounting of goods on their platforms. In October last year, it had first written to the CCI on issues the traditional supply chain was facing owing to the rapid growth of quick commerce. The appointment of these platforms as direct distributors of FMCG items by several companies was one of the complaints. The federation had written to the Food Safety & Standards Authority of India, which asked ecommerce and quick-commerce operators in the food business to ensure a minimum shelf life of 45 days before the expiry of products at the time of delivery to consumers.
The Hindu
15 minutes ago
- The Hindu
BRS blames Congress, BJP for urea shortage in Telangana
HYDERABAD Senior leader of the Bharat Rashtra Samithi (BRS) and former MLA Gandra Venkata Ramana Reddy has said farmers in the State are facing a serious crisis of urea shortage at a time when cultivation of Kharif crops has gained pace with rains over the last two weeks, as the State and Central governments are speaking in different tones on the issue. Addressing a press conference here on Sunday, he said despite having eight MPs in Lok Sabha from Telangana, the Bharatiya Janata Party (BJP) was unable to supply urea in time. Instead of speaking on the Congress government, the BJP leaders were biding time on speaking against BRS and Union Minister Bandi Sanjay was unable to see the poor water level in Lower Manair Dam. However, the Congress government was not willing to switch on the Kannepally pump house to give water to the rain-deficit areas while huge quantities of water was flowing down BJP was also not interested in building pressure on the government to do so. The sole objective the two parties appears be defaming BRS come what may, he observed. While the Congress government was planning to harass its political opponents with the help of Kaleshwaram Commission report, the bickering in BJP had forced the party leadership to include Eatala Rajender's name in it, Mr. Venkata Ramana Reddy said and added that the two parties were making Kaleshwaram project defunct in the name of NDSA report. He also criticised the Congress government for its lack of sincerity in implementing 42% reservation to backward classes.
Hans India
15 minutes ago
- Hans India
Robert Vadra dodged questions, put onus on deceased associates in money laundering probe: ED
Robert Vadra, businessman and husband of Congress MP Priyanka Gandhi Vadra, has been accused by the Enforcement Directorate (ED) of giving evasive and non-cooperative replies during questioning about a suspicious 2008 land deal in Gurugram's Shikohpur village. According to the ED's 332-page chargesheet, filed before a special Prevention of Money Laundering Act (PMLA) court in Delhi, Vadra repeatedly avoided direct answers and instead shifted full responsibility onto his three deceased associates, refusing to clarify his own role in the deal. His reluctance to cooperate significantly delayed the investigation and obstructed the agency's efforts to trace the flow of illicit funds. The federal agency alleges that Vadra used his political connections, including influence through former Haryana Chief Minister Bhupinder Singh Hooda, to pressurise the government officials into approving the land transaction, which involved alleged fraudulent practices and money laundering. The chargesheet reveals that Vadra's company, Skylight Hospitality Private Limited, acquired 3.5 acres of land for Rs 7.50 crore in a deal where no real payment was made. The cheque mentioned in the sale deed was never issued by Vadra, and its value was significantly below market rates. Despite these irregularities, the deal was pushed through by the Directorate of Town and Country Planning (DTCP), allegedly after backdated approvals and altered plans to qualify for commercial licensing. Throughout the investigation, Vadra's evasiveness complicated the probe. The ED claims his refusal to provide clear responses hindered uncovering the full scope of the alleged money laundering and fraud. The agency has identified Rs 58 crore as proceeds of crime and provisionally attached 43 immovable properties worth Rs 38.69 crore linked to the case. Vadra and seven companies tied to him stand accused alongside others. The special PMLA court has scheduled August 28 to consider the ED's complaint and issued notices to Vadra and co-accused.
