The Punjab government has issued charge sheets against seven key officers and transferred another in connection with alleged irregularities in the supply of subsidised agricultural-grade (Neem-coated) urea in place of technical grade urea. A government spokesperson confirmed on Sunday that the Department of Cooperation acted swiftly after complaints surfaced regarding possible misuse and misclassification of fertiliser supplies.
Swift Action Ordered After Complaints
Following the complaints, the Administrative Secretary of the department directed the Managing Directors of MARKFED and MILKFED to conduct immediate fact-finding inquiries, determine responsibility, and submit action-taken reports without delay. On June 25, the department ordered the initiation of major penalty disciplinary proceedings against general managers and other officers involved in the procurement and purchase of technical-grade urea.
Acting on these directions, MILKFED issued major penalty charge sheets against multiple officials, including the General Manager, Manager (Animal Husbandry) and In-charge Quality, Deputy Manager (Purchase & Store) / In-charge (Finance & Accounts), and Senior Assistant In-charge at the Khanna Cattle Feed Plant. Similarly, MARKFED initiated disciplinary proceedings against officers found prima facie responsible. A show-cause notice was issued to the Chief Manager, while charge sheets were served to the General Manager, Senior Accounts Officer (holding additional charge as Deputy Chief Accounts Officer), and a Senior Assistant (acting as Commercial Manager) under applicable service rules. The Senior Assistant working as Commercial Manager has also been transferred in an administrative capacity.
GST and Financial Irregularities Probed
Authorities noted that the move was taken in view of possible GST-related irregularities and financial violations. In parallel, the Department of Taxation was directed to carry out further investigation. Acting on this, tax officials inspected the premises of M/s Indo Organic, Gidderbaha, and directed the firm to produce its books of accounts and related records for detailed verification.
The department also flagged suspected irregularities involving Manisha Trading Co., New Delhi, and A M Chemical, Sonipat, Haryana, in relation to supplies declared as technical grade urea. Preliminary verification suggests that the material supplied may have been neem-coated urea instead of what was declared in GST documents, raising concerns of misdeclaration, wrongful input tax credit claims, and possible diversion of subsidised fertiliser. The matter has been referred to the Principal Commissioners of the Central Goods and Services Tax (CGST) Department in New Delhi and Panchkula for further investigation and legal action.
Chief Minister Directs Nodal Agency Reform
To prevent recurrence of such incidents, the Chief Minister has directed the Department of Cooperation to have MARKFED function as the nodal agency for procurement and supply of technical-grade urea in Punjab. The proposed system aims to ensure direct sourcing from Government of India agencies or authorised organisations, to improve transparency, quality control, and supply chain efficiency across cooperative institutions in the state. The government spokesperson emphasised that the action demonstrates the government's commitment to accountability and good governance.
