Govt tightens horticulture subsidy rules, bars ministers, MPs, MLAs from scheme benefits

New Delhi: The Centre has tightened eligibility norms for the National Horticulture Board's (NHB) commercial horticulture and cold storage schemes, barring holders of constitutional posts, sitting ministers, MPs, MLAs, mayors and district panchayat chairpersons, among others, from availing financial assistance under the schemes.

The amended guidelines, issued on August 21 and applicable with immediate effect, also exclude serving employees of central and state government ministries, departments, PSUs, autonomous bodies and local bodies ‘barring MTS/Class-IV/Group-D staff’ from NHB assistance.

Superannuated or retired pensioners drawing a monthly pension of Rs 10,000 or more, again excluding MTS/Class-IV/Group-D employees and groups of farmers, have also been declared ineligible.

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However, family members of those falling in these categories may still avail one-time assistance, subject to the revised definition of "family" under the scheme, the amendment states.

The move comes weeks after it emerged that Union Minister of State for Agriculture Bhagirath Choudhary and BJP MP Lumba Ram had benefited from the scheme.

NHB said the amendment was aimed at rationalising financial assistance, ensuring equitable distribution of benefits, preventing duplication of subsidy and making implementation of the schemes more transparent and effective.

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Only one family member eligible

Under the revised norms, "family" for the purpose of determining eligibility will comprise the applicant's spouse, parents, sons and daughters. Only one member of a family will be eligible to avail assistance under NHB schemes, whether individually or through a Hindu Undivided Family (HUF), a partnership or proprietorship firm, or as a director of a company.

“Financial assistance availed by any member of a family shall be treated as financial assistance availed by the same family,” the guidelines stated, adding that once any family member has availed assistance under any NHB scheme, no other member will be eligible for further assistance under any scheme or component 'irrespective of any unutilised portion of the maximum admissible ceiling’.

This restriction, NHB said, will apply across all its schemes and will constitute the final entitlement for the family.

In cases where an FPO, FPC or company has already availed assistance, its members will be eligible to avail assistance once in their individual capacity, subject to the revised family definition.

Applicants will now have to furnish a declaration regarding their eligibility and that of family members covered under the new definition, in a format prescribed by NHB.

The guidelines warn that suppression, misrepresentation or furnishing of incorrect information to obtain assistance will make the applicant liable for recovery of the assistance released, along with applicable interest.

All ongoing and pending applications will be dealt with by NHB on a case-to-case basis, guided by the amended provisions and directions of the competent authority, the Board said.

Other changes introduced include a revision in the rate of financial assistance, exclusion of the cost of land from eligible project costs, provision for voluntary refund or exit from the scheme, and a revision in the cost of the application form and scheme brochure.

Minister refunds subsidy

Choudhary has since refunded the subsidy to the bank concerned, which has in turn been directed to return the amount to NHB, Minister of State for Agriculture Ramnath Thakur informed Parliament on July 28.

Thakur had told the Lok Sabha in his written reply that the existing NHB scheme guidelines did not contain any specific provision on conflict of interest or recusal in respect of applications submitted by public functionaries or their family members.

He said the schemes were open to all eligible applicants – 'individuals, partnerships, companies, cooperatives and other eligible legal entities’ – subject to fulfilment of prescribed eligibility conditions, and that project land was required to be owned by the applicant or held on lease for a minimum of ten years, duly reflected in revenue records.

Applications, Thakur said, are processed through a transparent, multi-tier mechanism: the financing bank first sanctions the term loan and appraises the project, after which NHB scrutinises the application through its Project Examination Committee before issuing the Grant of Clearance.

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