CHAPTER 1
MINISTRY OF AGRICULTURE
National Seeds Corporation Limited
1.1.1 Irregular upgradation of posts
Irregular upgradation of posts by National Seeds Corporation Limited
under central dearness allowance pattern resulted in additional financial
commitment of Rs.46.42 lakh. The Department of Public Enterprises (DPE) directed (June
1990) the Public Sector Enterprises (PSEs) to revise the scales of officers and
staff under central dearness allowance (CDA) and industrial dearness allowance
(IDA) scales of pay as per the recommendations of High Power Pay Committee (HPPC)
set up by the Government of India (GOI). GOI directed (August 1991) that no new
posts be created on CDA pattern, by any PSE, on or after 1 January 1989, and
deemed upgradation of posts as creation of new posts.
The Managing Director, National Seeds Corporation Limited (NSC),
contravening the above directions, upgraded 120 posts (August 1996 to March
1998) under CDA scales of pay to various posts under the same scale i.e. CDA
scales of pay resulting in creation of new posts under CDA scales. This
irregular upgradation of 120 posts resulted in additional financial burden of
Rs.46.24 lakh (approx.) from August 1996 to March 2002.
On being pointed out by Audit (March 2000), NSC sought
clarification (October 2000) from Ministry. It also clarified (December 2001)
that no such powers had been delegated to Managements of the PSEs to allow
higher time scales/upgradation/deviations from the recommendations made by the
HPPC to the existing employees. However, Ministry did not direct NSC to take
action nor did NSC initiate any action to remedy the irregularity and fix
responsibility.
Management replied (July 2002) that it had resorted only to
financial upgradation of the existing employees as covered under Assured Career
Progression (ACP) scheme of GOI and therefore the employees were continued in
the CDA scales of pay. It was also stated that putting them in IDA scale of pay
would have led to change of service conditions unilaterally and consequent
litigation between the employees and NSC.
The reply of Management is not acceptable in view of the fact
that the ACP scheme is applicable only to the employees of GOI. PSE employees
were not covered by the scheme. Further, the posts were upgraded before
implementation of the ACP Scheme by GOI. GOI instructions were also clear that
no new posts or upgradation of posts in the CDA pattern were to be carried out
after 1 January 1989.
Thus, upgradation of 120 posts by the Managing Director was
irregular leading to recurring additional financial burden every month, the
effect of which up to March 2002 was Rs.46.24 lakh.
Ministry while forwarding reply of NSC stated (July 2002)
that the remedial action to be taken was under consideration.
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