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Management of Narcotics Substances 96 MANAGEMENT OF NARCOTICS SUBSTANCES MINISTRY OF FINANCE (DEPARTMENT OF REVENUE) PUBLIC ACCOUNTS COMMITTEE (2017-18) NINETY-SIXTH REPORT SIXTEENTH LOK SABHA LOK SABHA SECRETARIAT NEW DELHI PAC NO. 213( NINETY-SIXTH REPORT PUBLIC ACCOUNTS COMMITTEE (2017-18) SIXTEENTH LOK SABHA MANAGEMENT OF NARCOTICS SUBSTANCES MINISTRY OF FINANCE (DEPARTMENT OF REVENUE) ~~i Presented to Lok Sabha on: .~?}.~~\.~.'.Q .. L a,"d .m RaJya · Sa . bh a on ...........· d ~ \ ~-1,~ :1 dn...... \ ~ . LOK. SABHA SECRETARIAT NEW DELHI March, 2018/ Chaitra, 1940 (Saka) l,Vl'J I t:N f :::> PAGE NO. COMPOSITION OF THE PUBLIC ACCOUNTS COMMITTEE (2017-18) COMPOSITION OF THE PUBLIC ACCOUNTS COMMITTEE (2016-17) COMPOSITION OF THE PUBLIC ACCOUNTS COMMITTEE (2015-16) COMPOSITION OF THE PUBLIC ACCOUNTS COMMITTEE (2014-15) COMPOSITION OF SUB-COMMITTEE Ill OF PAC (2017-18) COMPOSITION OF SUB-COMMITTEE Ill OF PAC (2016-17) INTRODUCTION PART-I CHAPTER-I INTRODUCTION I Introduction II Sanctioned Strength and Persons-in-position Ill Performance of the Narcotic Substances Management in India IV Ambiguity in the Opium policy V Excess ineligible licenses issued to cultivator due to violation of License Policy VI Continuous downfall in number of Cultivators, harvested area, harvested villages and commensurate Non Tax Revenue and Non-achievement of reQuired opium production VII Anomalies in the Opium policy .VIII Loss of Opium crop due to exorbitant ploughing back IX Payment made to persons other than cultivators X Long pendency of Court cases XI Preventive activities, Illicit Poppy cultivation XII Internal control audit and Monitoring PART- II Observations/recommendations of the Committee APPENDICES I. Minutes of the.sixth sitting of the Sub-Committee .111 of-Public Accounts Committee (2016-17) held on 9 November, 2016. II. Minutes of the ninth sitting of the Sub-Committee Ill of Public Accounts Committee (2017-18) held on 9 November, 2017. Ill. Minutes of the twelfth sitting of the Sub-Committee Ill of Public Accounts Committee (2017-18) held on 4 December, 2017. IV. Minutes of the sixteenth sitting of the Sub-Committee Ill of Public Accounts Committee (2017-18) held on 22 March, 2018. V. Minutes of the twenty-second sitting of the Public Accounts Committee (2017-18) held on 23 March, 2018. COMPOSITION OF THE PUBLIC ACCOUNTS COMMITTEE (2017-18) Shri Mallikarjun Kharge Chairperson MEMBERS LOK SABHA 2. Shri Sudip Bandyopadhyay 3. Shri Subhash Chandra Baheria 4. Shri Prem Singh Chandumajra 5. Shri Nishikant Dubey 6. Shri Gajanan Chandrakant Kirtikar · 7. Shri Bhartruhari Mahtab 8. Smt. Riti Pathak 9. Shri Neiphiu Rio· 10. Shri Abhishek Singh 11. Prof. Ham Shanker 12. Dr. Kirit Somaiya 13. Shri Anurag Singh Thakur 14. Shri Shivkumar C. Udasi 15. Dr. P. Venugopal · RAJYA SABHA 16. Shri Naresh Agrawal 17. Shri Satyavrat Chaturvedi 18. Shri Bhubaneswar Kalita 19. Shri Mohd. Ali Khan t 20. Shri Sukhendu Sekhar Roy+ 21. Shri Ajay Sancheti 22. Shri Bhupender Yadav SECRETARIAT 1. Shri AK. Singh - Additional Secretary 2. Shri T.Jayakumar - Director 3. Smt.Bharti S. Tuteja - Deputy Secretary • Ceased to be a Member of Committee consequent upon acceptance of his resignation from Lok Sabha w.e.f. 22 February, 2018. t Elected w.e.f. 29 December, 2017 in lieu of vacancy caused due to retirement of Shri Shantaram Naik. t ceased to be a Member of Committee consequent upon his retirement from Rajya Sabha on 18 August, 2017 and re-elected w.e.f. 29 December, 2017. COMPOSITION OF THE PUBLIC ACCOUNTS COMMITTEE (2016-17) Prof. K.V. Thomas Chairperson MEMBERS LOK SABHA 2. Shri Sudip Bandyopadhyay 3. Shri Prem Singh Chandumajra 4. Shri Nishikant Dubey 5. Prof. Richard Hay 6. Shri Gajanan Chandrakant Kirtikar 7. Shri Bhartruhari Mahtab 8. Smt. Riti Pathak 9. Shri Neiphiu Rio 10. Shri Janardan Singh Sigriwal 11. Shri Abhishek Singh 12. Dr. Kirit Somaiya 13. Shri Anurag Singh Thakur 14. Shri Shivkumar C. Udasi 15. Dr. P. Venugopal RAJYASABHA 16. Shri Naresh Agrawal 17. Shri Satyavrat Chaturvedi 18. § Shri Bhupender Yadav 19. Shri Bhubaneswar Kalita 20. Shri Shantaram Naik 21. Shri Sukhendu Sekhar Roy 22. Shri Ajay Sancheti § Elected w.e.f. 09.08.2016 vice Shri Vijay Goel, MP appointed as Minister of State w.e.f. 05.07.2016. COMPOSITION OF THE PUBLIC ACCOUNTS COMMITTEE (2015-16) Prof. K.V. Thomas Chairperson MEMBERS LOKSABHA 2. Shri S.S. Ahluwalia . 3. Shri Sudip Bandyopadhyay 4. Shri Ranjit Singh Brahmpura 5. Shri Nishikant Dubey 6. Shri Gajanan Kirtikar 7. Shri Bhartruhari Mahtab 8. Shri Ramesh Pokhriyal "Nishank" 9. Shri Neiphiu Rio 10. Shri Dushyant Singh 11. Shri Janardan Singh Sigriwal 12. Dr. Kirit Somaiya 13. Shri Anurag Singh Thakur 14. Shri Shivkumar Udasi 15. Dr. P. Venugopal RAJYASABHA 16. Shri Naresh Agrawal 17. Shri Satyavrat Chaturvedi 18. Shri Anil Madhav Dave 19. Shri Vijay Goel 20. Shri Bhubaneswar Kalita 21. Shri Shantaram Naik 22. Shri Sukhendu Sekhar.Roy COMPOSITION OF THE PUBLIC ACCOUNTS COMMITTEE (2014-15) Prof. K.V. Thomas Chairperson MEMBERS LOKSABHA 2. Shri S.S. Ahluwalia 3. Shri Sudip Bandyopadhyay 4. Shri Ranjit Singh Brahmpura 5. Shri Nishikant Dubey 6. Shri Gajanan Kirtikar 7. Shri Bhartruhari Mahtab 8. Shri Ramesh Pokhriyal "Nishank" 9. Shri Ne~phiu Rio 10**. Shri Dushyant Singh 11. Shri Janardan Singh Sigriwal 12tt. Shri Shiv Kumar Udasi 13. Dr. Kirit Somaiya 14. Shri Anurag Thakur 15tt. Dr. P. Venugopal RAJYASABHA 16. Shri Satyavrat Chaturvedi 17. Shri Vijay Goel 18. Dr. Satyanarayan Jatiya 19. Shri Bhubaneswar Kali ta 20. Shri Shantaram Naik 21. Shri Sukhendu Sekhar Roy 22. Shri Ramchandra Prasad Singh •• Elected w.e.f. 3rd December, 2014 vice Shri Rajiv Pratap Rudy who has been appointed as Minister w.e.f. 9th November, 2014. tt Elected w.e.f. 3rd December, 2014 vice Shri Jayant Sinha who has been appointed as Minister w.e.f. 9th November, 2014. tt Elected w.e.f. 3rd December, 2014 vice Dr. M. Thambidurai who has been chosen as Hon'ble Deputy Speaker, Lok Sabha and has since resigned from the membership of the Committee. · COMPOSITION OF THE SUB COMMITTEE Ill OF THE PUBLIC ACCOUNTS COMMITTEE (2017-18) Convenor 1. Shri Nishikant Dubey Alternate Convenor : 2. Shri Satyavrat Chaturvedi Members 3. ·Shri Shivkumar C. Udasi 4. Shri Bhupender Yadav 5. Shri Sukhendu Sekhar Roy* ·6. Shri Ajay Sancheti *ceased to be a Member of Committee consequent upon his retirement from Rajya Sabha on 18 August, 2017 and re-elected w.e.f. 29 December, 2017. COMPOSITION OF THE SUB COMMITTEE - Ill OF THE PAC · (2016-17} Sub-Committee - Ill (Direct and Indirect Taxes) Convenor 1. Shri Nishikant Dubey Alternate 2. Shri Satyavrat Chaturvedi Convenor Members 3. Shri Shivkumar C. Udasi 4. Prof. Richard Hay 5. Shri Sukhendu Sekhar Roy 6. Shri Ajay Sancheti INTRODUCTION I, the Chairperson, Public Accounts Committee (2017-18), having been authorised by the Committee, do present this Ninety-sixth Report (Sixteenth Lok Sabha) on 'Management of Narcotics Substances' based on Chapter VI of C&AG Report No. 12 of 2014 relating to the Ministry of Finance (Department of Revenue). 2. The Report No. 12 of 2014 of the Comptroller and Auditor General of India was laid on the Table of the House on 1 August, 2014. 3. Chapter VI of C&AG Report No. 12 of 2014 on Management of Narcotics Substances was selected by the Public Accounts Committee (PAC) for examination in 2014-15 and continued to be examined during 2015-16. The subject was discussed by the PAC during study visit at Goa during 2015-16. Subsequently, on allocation of the subject to Sub-Committee Ill (Direct & Indirect Taxes) of PAC, the subject was examined during 2016-17 and 2017-18. 4. The' Sub-Committee Ill of Public Accounts Committee took oral evidences of the representatives of Ministry of Home Affairs on 9 November, 2016, Ministry of Commerce & tndustry (Department of Commerce) and Narcotics Control Bureau (NCB) on 9 November, 2017 and Ministry of Finance (Department of Revenue) & Central Bureau of Narcotics (CBN) on 4 December, 2017. The Sub-Committee Ill of PAC (2017-18) considered and adopted this Report at their sitting held on 22 March, 2018. The Public Accounts Committee (2017-18) considered and adopted this Report at their sitting held on 23 rv,arch, 2018. The Minutes of the sittings are appended to the Report. 5. For facility of reference and convenience, the Observations and Recommendations of the Committee have been printed in bold and form Part II of the Report. 6. The Committee thank the predecessor Committees for obtaining information on the subject. 7. The Committee would like to express their thanks to the representatives of the Ministry of Finance (Department of Revenue), Ministry of Home Affairs, Ministry of Commerce & Industry (Department of Commerce), NCB and CBN for tendering evidence before them and furnishing the requisite information to the Committee in connection with the examination of the subject. 8. The Committee also place on record their appreciation of the assistance rendered to them in the matter by the office of the Comptroller and Auditor General of India. NEW DELHI; Shri Mallikarjun Kharge, 23 March, 2018 Chairperson, 2 Chaitra 1940 (Saka) Public Accounts Committee. MANAGEMENT OF NARCOTICS SUBSTANCES (DEPARTMENT OF REVENUE) Part- I I. Introduction The use of opium in the country could be traced back as far as 1000 AD where it finds mention in ancient texts such as Dhanvantari Nighantu as a remedy for variety of ailments. Prior to 1950, the administration of the Narcotics Laws, namely, the Opium Act of 1857 & 1878 and the Dangerous Drugs Act,' 1930 vested with the Provincial Government. The amalgamation of these Agencies laid the foundation of the Opium Department in November, 1950 which is presently known as Central Bureau of Narcotics (CBN).
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