CAG Report Exposes Gujarat's Failure to Weed Out Fraudulent Ration Cards Under NFSA
CAG Flags Gujarat's Inaction on Fraudulent Ration Cards Under NFSA

CAG Audit Uncovers Lapses in Gujarat's Ration Card Verification Under NFSA

The Comptroller and Auditor General (CAG) has issued a critical report highlighting the Gujarat government's failure to conduct mandated annual special drives to identify and remove ineligible or fraudulent ration cards under the National Food Security Act (NFSA). This oversight has resulted in the improper distribution of food grains, raising concerns about the efficiency of the Targeted Public Distribution System (TPDS).

Mandatory Drives Neglected for Years

According to Clause 4 of the Targeted Public Distribution System (Control) Order, 2015, state governments are required to perform an annual exercise to eliminate bogus ration cards before the end of each financial year. However, the CAG audit observed that the Gujarat government did not carry out any such special drive between 2016 and 2023, with the sole exception being the year 2018-19. During that period, Aadhaar-based biometric authentication was introduced, which led to significant improvements in card verification.

Impact of Aadhaar Authentication and Ongoing Issues

The introduction of Aadhaar-based biometric authentication in 2018-19 proved highly effective, resulting in the removal of 6.06 lakh fraudulent or irregular ration cards. This action affected a population of 48.67 lakh individuals and led to a 5.41% decrease in annual food grain distribution, from 21.08 lakh metric tonnes (MT) in 2017-18 to 19.94 lakh MT in 2018-19. Despite this success, the lack of consistent annual drives has allowed inefficiencies to persist. Between April 2016 and February 2018, approximately 5.15 lakh MT of food grains, along with other commodities, were distributed under these ineligible cards.

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Income Verification Failures and Government Response

The CAG report further detailed that in 47% of the cases examined, income data were either invalid or indicated that at least one family member's income exceeded the threshold of Rs 15,000 per month, making them ineligible for benefits under the NFSA. In response to these findings, the department stated in May 2024 that instructions have been issued to district collectors to verify income and other eligibility criteria rigorously. The aim is to remove ineligible households from the NFSA list, ensuring that benefits reach only bona fide beneficiaries and enhancing the system's integrity.

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