Chandigarh, October 10: The Punjab State Warehousing Corporation Retired Employees Association (WCREA) has condemned the Punjab government's illegal withdrawal of ?1,123 crore from PSWC reserves, calling it "unauthorized and contrary to the provisions of the Warehousing Corporation Act, 1962."
The association stated that the PSWC's reserve funds cannot be used as the government's cash fund, as it is a statutory reserve, deposited for the welfare of farmers and employees, not to meet the state's budget deficit.
Over the past few years, the government has transferred a total of ?1,123 crore from PSWC to the state treasury without any repayment terms or interest. Some of the transfers were premature withdrawals of fixed deposits. The funds were encashed, causing serious financial losses to the corporation.
Both the Accountant General of Punjab and the Central Warehousing Corporation (CWC), which holds 50% equity in PSWC, have objected to the diversion of these funds. The PSWC board itself formally registered its dissent in its meetings, but the objections were ignored.
A spokesperson for the association said, "Such misappropriation could undermine PSWC's ability to pay farmers, employees, and retired employees. This is a direct blow to their livelihoods." "If the government does not return the illegally transferred Rs 1,123 crore along with interest, the association may be forced to approach the court.