Super Bazaar, which was once a hub of activity, now wears a grim and eerie look with its shutters pulled down after the orders of the Central Registrar of Cooperative Societies from September 5, 2002. A visit to its branch in the INA Market, which was one of its six regional branches, leads to a confrontation with the few employees who complain about the ‘injustices’ done to them. The scene is no different at Rajendra Place, where the branch is open but non-functional.

Super Bazar was set up way back in 1966 to meet the crisis that developed following the Indo-Pak war. Its objective was to control rising prices of essential commodities and make quality products accessible to people at reasonable prices. For more than three decades, it provided consumer goods, essential commodities of day-to-day life under one roof, saving customers from the hassle of going to different shops and thus also saving their time and money. What went wrong with the organisation which prompted the government to take the extreme step of closing it down?

The same virus that pervades other government organisations of eroding capital and profits struck this once profit-making organisation. The government of India has a shareholding of 73 per cent. Further, it extended loans to Super Bazaar by virtue of which nominations of the chairman, vice-chairman, managing director and seven other directors of the Board of Super Bazaar were done. The other side of the sad story is of how the management, in collusion with elements in the government, brought about the death of a once glorious institution.

It was making profits till 1996 after a shaky start, but once losses started surfacing in 1996, it never recovered. By 2000, it was running at a loss of Rs. 41 crore and in 2002 the accumulated loss reached Rs. 60 crore.

The first scam exposed in Super Bazaar related to biscuits which led to a loss of approximately Rs. 9 crore. Super Bazaar was to supply biscuits to government-run schools for the mid-day meal programme. According to the rules, the organisation should have floated tenders,
instead, ‘favoured’ suppliers were asked to directly supply the material to the schools, and in the process everybody made money —starting from the suppliers to the principals. S. P. Banerjee, former managing director, and R. D. Srivastav, former deputy general manager, were held guilty by the Central Vigilance Commission (CVC) and the Central Bureau of Investigation (CBI) and departmental action was ordered. As usual, nothing happened. Banerjee is in Uttar Pradesh, serving as principal secretary in a government office. In 1997, Ramakant took over as managing director but he too behaved like his predecessors. During his tenure, the government released wheat to Super Bazaar at concessional rates. He too entered into a contract for grinding wheat with a company based in Etawah in Uttar Pradesh. There was no dearth of millers in Delhi yet Super Bazaar unnecessarily bore the transportation charges. Even more shocking was that the wheat never returned to Delhi. When the matter came to the notice of the CVC, it charge-sheeted many employees and minor penalties were imposed but the real culprits escaped.

Surinder Singh Dhurri, a former minister, was made chairman in 1998. His tenure is termed as one of the most corrupt by Super Bazaar employees. He was appointed by the then Consumer Affairs Minister, Surjit Singh Barnala, and was his ‘right hand’. Many other politicians were also appointed as directors on the Board. Lots of irregularities came to notice vis-a-vis purchase of pulses, onions, potatoes, spices, Swaraj Mazda trucks, etc. He asked a company manufacturing brooms to supply potatoes! Irregular appointments were made. According to the report of the Central Registrar, S. K. Bhoria, during the general election of 1998, prices of eight types of pulses were reduced for a week, resulting in a loss of Rs. 1.6 crore.

The Central Registrar (CR) enquiry found that losses were incurred due to excess of manpower, corruption and non-professionalism. It ordered the recovery of Rs. 48 lakh from Dhurri, then vice-chairman Surender Singh Gandhi, former director Harcharan Singh Josh, former director Ram Maheshwari, former director Amarjit Singh Chatwal and deputy general manager (DGM) Vijay Kumar.

Dhurri’s term ended in October 1999 and Rao joined from the MCA with P. M. Devdasan who was appointed DGM. At last, Super Bazaar had an honest officer who took interest in its welfare. Devdasan wrote to the ministry concerned that the organisation could be revived with a loan of Rs. 10 crore but nobody paid heed. During this time, from October 1999 to February 2000, Super Bazaar saw an increase in its sale from Rs. 4 crore to Rs. 7.5 crore per month.

P. Mitra joined as MD in February 2000. He was called a ‘stooge’ of the then Minister of Consumer Affairs Shanta Kumar. He was specially called from Himachal Pradesh for the task.

According to sources he called the suppliers ‘fools’ and told them he was not responsible for their money which they were putting in Super Bazaar, which led to the abandoning of the institution by honest suppliers. When he joined, the sale was around Rs. 8-10 crore a month, but it plummeted to Rs. 1 crore. Mitra, during his short term of six months, was accused of indulging in many corrupt practices but no action was taken against him.