Irregularities in Food Testing Lab Project: Centre directs to refund Rs.304.37 Lakh with 10% Penal Interest

A major case of alleged negligence and mismanagement has surfaced in Manipur over the failed Food Testing Laboratory project at Nilakuthi Food Park, with the Ministry of Food Processing Industries (MoFPI), Government of India, withdrawing its approval and directing the Manipur Food Industries Corporation Limited (MFICL) to refund Rs. 304.37 lakh along with 10% penal interest.
The Food Testing Laboratory at Nilakuthi Food Park, Imphal East, was taken up under the Pradhan Mantri Kisan Sampada Yojana – Food Safety and Quality Assurance Infrastructure.
According to official documents accessed by Imphal Times, the Centre had sanctioned Rs.760.93 lakh for setting up the lab, releasing the first instalment Rs. Rs. 304.37 lakh on December 4, 2020. The project was scheduled to be completed by October 5, 2022, as per scheme guidelines. However, despite repeated reminders, deficiencies flagged by the Ministry from August 5, 2022, remain unaddressed.
On March 3, 2022, MFICL submitted documents on the SAMPADA portal seeking the second instalment. Upon scrutiny, the Ministry found several deficiencies and, on August 5, 2022, directed the corporation to rectify them. To date, no corrective measures have been taken.
The Ministry escalated the matter by writing to the Chief Secretary of Manipur on December 12, 2022, and March 13, 2023, and even convened a review meeting on February 20, 2023. Notably, no MFICL representative attended the meeting.
Show-cause notices were subsequently issued on May 19, 2023, and again on June 26, 2023, warning of cancellation of approval and recovery of funds with interest if clarifications were not provided. Both notices went unanswered.
Finally, on July 24, 2023, the Ministry withdrew its approval and ordered the recovery of the grant, directing the Managing Director, MFICL, to return the Rs.304.37 lakh released as the first instalment, along with penal interest of 10% per annum calculated from the date of release till repayment. The refund, the Ministry instructed, must be made via cheque in favour of the PAO, MoFPI, New Delhi.
Sources within the Ministry confirmed that MFICL has not refunded the amount to date, raising serious questions over accountability in the state machinery and the fate of public funds.
Records further show that out of the sanctioned amount, equipment worth Rs.2,92,00,079 was procured from M/s Medis, Ayangpalli Soibam Leikai, by MFICL on January 25, 2022.