- (1.) Smt. Mamta Misra is before this Court assailing the validity of the decision that has been so taken, wherein her request for sanction of loan under Prime Minister Employment Generation Programme (P.M.E.G.P) has been turned down. The Government of India has approved the introduction of the scheme as follows: Guidelines On Prime Minister's Employment Generation Programme (PMEGP) 1. The Scheme Government of India has approved the introduction of a new credit linked subsidy programme called Prime Minister's Employment Generation Programme (PMEGP) by merging the two schemes that were in operation till 31.03.2008 namely Prime Minister's Rojgar Yojana (PMRY) and Rural Employment Generation Programme (REGP) for generation of employment opportunities through establishment of micro enterprises in rural as well as urban areas. PMEGP will be a central sector scheme to be administered by the Ministry of Micro, Small and Medium Enterprises (MoMSME). The Scheme will be implemented by Khadi and Village Industries Commission (KVIC), a statutory organization under the administrative control of the Mininstry of MSME as the single nodal agency at the National level. At the State level, the Scheme will be implemented through State KVIC Directorates, State Khadi and Village Industries Boards (KVIBs) and District Industries Centres (DICs) and banks. The Government subsidy under the Scheme will be routed by KVIC through the identified Banks for eventual distribution to the beneficiaries/entrepreneurs in their Bank accounts. The Implementing Agencies, namely KVIC, KVIBs and DICs will associate reputed Non Government Organisation (NGOs)/reputed autonomous institutions/Self Help Groups (SHGs)/National Small Industries Corporation (NSIC)/ Udyami Mitras empanelled under Rajiv Gandhi Udyami Mitra Yojana (RGUMY), Panchayati Raj institutions and other relevant bodies in the implementation of the Scheme, especially in the area of identification of beneficiaries, of area specific viable projects, and providing training in entrepreneurship development. 2. Objectives (i) To generate employment opportunities in rural as well as urban areas of the country through setting up of new self employment ventures/projects/micro enterprises. (ii) To bring together widely dispersed traditional artisans/rural and urban unemployed youth and give them self-employment opportunities to the extent possible, at their place. (iii) To provide continuous and sustainable employment to a large segment of traditional and prospective artisans and rural and urban unemployed youth in the country, so as to help arrest migration of rural youth to urban areas. (iv) To increase the wage earning capacity of artisans and contribute to increase in the growth rate of rural and urban employment. 3. Quantum and Nature of Financial Assistance Levels of funding under PMEGP JUDGEMENT_168_LAWS(ALL)3_2017.html Note: (1) The maximum cost of the project/unit admissible under manufacturing sector is Rs.25 lakh. (2) The maximum cost of the project/unit admissible under business/service sector is Rs. 10 lakh. (3) (3) The balance amount of the total project cost will be provided by Banks as term loan. 4. Eligibility Conditions of Beneficiaries (i) Any individual, above 18 years of age (ii) There will be no income ceiling for assistance for setting up projects under PMEGP. (iii) For setting up of project costing above Rs. 10 lakh in the manufacturing sector and above Rs. 5 lakh in the business/service sector, the beneficiaries should possess at least VIII standard pass educational qualification. (iv) Assistance under the Scheme is available only for new projects sanctioned specifically under the PMEGP. (v) Self Help Groups (including those belonging to BPL provided that they have not availed benefits under any other Scheme) are also eligible for assistance under PMEGP. (vi) Institutions registered under Societies Registration Act, 1860; (vii) Production Co-operative Societies, and (viii) Charitable Trusts. (ix) Existing Units (under PMRY, REGP or any other scheme of Government of India or State Government) and the units that have already availed Government Subsidy under any other scheme of Government of India or State Government are not eligible. 4.1 Other eligibility conditions (i) A certified copy of the caste/community certificate or relevant document issued by the competent authority in the case of other special categories, is required to be produced by the beneficiary to the concerned branch of the Banks along with the Margin Money (subsidy) Claim. (ii) A certified copy of the bye-laws of the institutions is required to be appended to the Margin Money (subsidy) Claim, wherever necessary. (iii) Project cost will include Capital Expenditure and one cycle of Working Capital. Projects without Capital Expenditure are not eligible for financing under the Scheme. Projects costing more than Rs.5 lakh, which do not require working capital, need clearance from the Regional Office or Controller of the Bank's Branch and the claims are required to be submitted with such certified copy of approval from Regional Office or Controller, as the case may be. (iv) Cost of the land should not be included in the Project cost. Cost of the ready built as well as long lease or rental Workshed/Workshop can be included in the project cost subject to restricting such cost of ready built as well as long lease or calculated for a maximum period of 3 years only. (v) PMEGP is applicable to all new viable micro enterprises, including Village Industries projects except activities indicated in the negative list of Village Industries. Existing/old units are not eligible (Para 29 of the guidelines refers). Note: (1) The institution/Production Co-operative Societies/Trusts specifically registered as such and SC/ST/OBC/Women/Physically Handicapped/Ex-Servicemen and Minority Institutions with necessary provisions in the bye laws to that effect are eligible for Margin Money (subsidy) for the special categories. However, for Institutions/Production Cooperative Societies/Trusts not registered as belonging to special categories, will be eligible for Margin Money (Subsidy) for general category. (2) Only one person from one family is eligible for obtaining financial assistance for setting up of projects under PMEGP. The 'family' includes self and spouse.
(2.) Under the said scheme in question, petitioner proceeded to move an application and this much is reflected that PMEGP has recommended the loan of Rs.5,00,000/- and in such a situation and in this background, the concerned Bank has proceeded to consider the request of petitioner, and thereafter, it has proceeded to turn down the request in question by noticing the following anomalies and discrepancies, which are as follows: A) Major Anomolies/Descrepancies observed: • The PMEGP has recommended the loan for Rs.15 lakh where as the project report submitted by the applicant shows the project cost as Rs.25 lakh and she has demanded the same amount for loan. How she is going to manage the balance Rs. 10 lakh? • The Project report submitted by the applicant shows requirement of Rs.15 lakh as capital expenditure meant for Plant and Machinery where as in the application the applicant has shown the requirement of Rs.20 lakh as capital expenditure for Plant and Machinery. • The Project Report shows the requirement of Rs.10 lakh for Working Capital where as the applicant has shown the requirement of Rs.5 lakh in the application for Working Capital. • In the project report at one place Sales Turnover has been showed over and above Rs.1 crore and in the same page under the heading of 'Capacity Utilisation of Sales' the Sales Turnover is shown Rs. 71.82 lakh. • The applicant has claimed that within a period of only one year the project of Rs.25 lakh will achieve Annual Sales Turnover of above Rs.1 crore which is by any standard is highly unacceptable and not genuine. • In the project report under the heading 'Projected Balance Sheet' applicant has shown Current Liabilities for all the projected years as NIL which is again unacceptable and not genuine. • Again under the heading 'Projected Balance Sheet' applicant has shown Cash in Hand/Bank as Rs. 10.45 lakh which is also not genuine. If the applicant is so much cash rich why she needs the bank finance then? • The proposed projects is going to be established on the land owned by the applicant which is agricultural land which is again against the extant rules and guidelines of Govt. of India. B) Other anomalies/Descrepancies observed: • The applicant has not taken any Commercial Electricity connection and as per the project report she is planning to run the whole factory on 25KVA Gen set which is again not economically viable and feasible. • Also the cost of 25 KVA Genset has not been included in the project report which might come between Rs.2 lakh to Rs.5 lakh approximately. This again shows that applicant is not at all serious about the establishment of project and has no knowledge about how to run it. • We have personally interviewed the applicant found out that she is a simple housewife and has no past experience of running any kind business which is in contradiction to what she has claimed to be in the project report. • This project involves and demand technical know-how to run if successfully but she is only BA Graduate and has no Technical Knowledge or expertise in this field of Aluminium. Anodizing which is again in contradiction to what she has claimed in the project report. • The applicant's CIBIL Report shows the score of -1 which stands for insufficient history to score. This again supports the fact that she is a simple housewife and has no interaction with any financial/banking institution and is not active in public domain which would have not been the case had she been a real entrepreneur. • This projects involves the use and application of poisonous and hazardous chemicals which may cause harm to human population in the village if not properly disposed off. But this project is silent about this aspect which is again very disturbing and unacceptable. • There is pond situated very near to the site of the project which is again not acceptable as per the extant government guidelines which prohibits the establishment of any factory especially which involves the application of poisonous chemicals near to the water bodies e.g. ponds, rivers etc. • Many important details/aspects of the projects are not being provided such as details of the Plant and Machinery, Name of the Suppliers of the plant and machinery, Market and Buyers of the finished goods etc.
(3.) Once the anomalies/discrepancies have been taken note of by the Authority concerned at the point of time when request of the applicant for sanction of loan under Prime Minister Employment Generation Programme (P.M.E.G.P) has been considered and based on the same, request has been turned down, then in our considered opinion, there is no occasion or reason for us to consider and review the matter, specially looking into the major anomalies/ discrepancies observed.;