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D.NO.SIK/21/4/SL-TL/05/824                                                                 DATED:15/16TH MARCH, 2005

R. K. SEEWAL EXECUTIVE DIRECTOR (G) DEAR SHRI Kindly refer to your DONo.E.19(3)/SL/Agenda Point/02-03/CWN/ HWC/HRO/CHD dated 17^th December, 2004 addressed our CMD regarding regularisation of storage losses in food grains stored in CWC/SWC warehouses.

2.           In this regard your kind attention is invited to Headquarters circular No.S&S/21(4)/RL/SL/99 dated 24.12.1999 read alongwith circular No.3 dated 11.9.2000 and subsequent corrigendum referred therein in the aforesaid DO Letter regarding regularization of storage losses in food grains during storage in FCI/ other warehouses. Accordingly, each and every case of transit or storage loss of Food grains has to be investigated to ascertain the reason and the remedy thereof in order to reduce the losses.. However, the losses upto 0.5% can be regularized by competent authority i.e. District Manager in case he considers that the losses are justifiable and not attributable to the negligence or otherwise of any official and do not warrant investigations considering the circumstances and facts of such cases. The losses beyond 0.5% are necessarily have to be investigated as per the prescribed procedure for the reasons accountability and remedy. The set procedure has to be followed for all cases of storage losses whether in FCI own deposits, hired depots or CWC/SWC operated depots.

3.           In case of CWC/SWC depots, a procedure of joint meeting has been prescribed for regularisation write off of the losses considering the investigation report the cases are to be scrutinized/ settled based on merit of each cases. The cases where no agreement is reached at Regional level be sent to Zonal Office with in one week of such decisions. Cases which are not settled even at Zonal level be referred to ED (Hqrs), Headquarters with detailed reasons thereof. It is for the CWC/SWC to fix responsibility on their employees for the losses which are attributable to them and FCI would write off accordingly. No deduction is to be made for the storage charges or the supervision charges or the service charges payable to CWC/SWC unless the prescribed procedures to settle the claims within the specified time are not adhered to and adequate notice given to them for their failure to settle the claims. CWC/SWC are also required to about a monthly statement of transit/ storage losses occurred in their depots alongwith the monthly claim a storage charges. In case such statement are not submitted by them, it could be presumed by the FCI that there are no incidences of transit/storage loss during that month in these CWC/SWC depots and the delayed claims are likely to be disallowed unless there are genuine reasons to it which are to be considered by the competent write off authority.

4.           It has also be ensured that the Handling and Transport arrangements in CWC/SWC operated depots are made by CWC/SWC only without exceptions.

5.           CWC has also reported that even after discussions are taken in the joint meetings in respect of pending claims, the field officers are not releasing the dues on one pretext or the other. It is therefore informed that the field offices should release such dues without delay failing which it would be difficult for them to create account liability for any interest demand/charges found by them.

6.           In view of the above laid down procedure, you may kindly settle all the pending claims of storage/ transit losses of food grains in CWc/SWC and other similarly placed depots.

7.           In case you require any further clarification, kindly do write.

Yours sincerely,

(R.K.SEEWAL)

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