The Comptroller and Auditor General of India (CAG) alleged that the union shipping ministry and some port authorities flouted norms and this cost an estimated loss of Rs 1.5 lakh crore.

In its report, the CAG found that some port authorities allowed unauthorised agents to carry out onshore operation without sharing royalty with the ports.

It is also learnt that the Parliamentary standing committee on transport, tourism and culture identified major financial leakages in waste oil disposal though the government is yet to take any action on it.

It is alleged that the Kolkata port authority appointed private parties for disposal of waste oil on nomination basis at throw away prices whereas this is reaching the market at a higher price later on. Similar situation prevails in all other major ports as well.

On July 12, the Rajya Sabha secretariat issued a memorandum seeking explanation from the shipping ministry and port authorities about waste oil disposal.

In its memorandum, the secretariat said, "Around 18,000 kilo litre of waste oil is generated in Kolkata and Haldia ports annually." The memorandum alleged that port authorities flouted tendering norms under CVC guidelines.