IFFCO board to discuss CVC supervision issue

NEW DELHI: Fertiliser major IFFCO board will this week deliberate on a move to put the cooperative, where the government has no shareholding, under watch of the Central Vigilance Commission ( CVC).


Indian Farmers Fertiliser Cooperative (IFFCO) is registered and managed as a cooperative with no direct or indirect government holding, debt or guarantee.

It is managed by a board which is elected by 40,000 cooperative societies spread across the country and the government has no role either in its management or in running of the nation's largest fertiliser seller.

But in view of the recent controversy over IFFCO board presenting its Managing Director U S Awasthi and his deputy Rakesh Kapur plush accommodation in South Delhi, the Department of Fertiliser is keen on putting the cooperative under direct watch of the CVC.

Sources with direct knowledge of the development said IFFCO board will meet on March 20 to decide on the issue. The Board will have to decide if the independence IFFCO enjoys currently should be subjudicated to CVC.

Legally, the Department cannot bring IFFCO under CVC as the government has no role in it. For IFFCO to come under CVC, the government will have to amend the Cooperatives Act and bring all cooperative bodies under purview of CVC, they said.

Sources said IFFCO has already replied to the Department of Fertiliser's letter seeking to bring the cooperative under CVC. It pointed out the legal position to state that IFFCO cannot be brought under CVC under present scheme of things.

The Department in an order issued earlier this month stated that multi-state cooperative societies IFFCO and KRIBHCO fall under its administrative jurisdiction and their decisions as well as members, office-bearers and employees are covered under the CVC Act.

The Board in the meeting would also decide on the issue of Awasthi and Kapur returning their accommodations that were given by IFFCO in recognition of their long-standing service to the cooperative.

Earlier this month, Awasthi and Kapur had offered to relinquish their posh accommodations following controversy that two prime South Delhi properties were gifted by IFFCO to top executives. Awasthi is the Managing Director of IFFCO since February, 1993.

While Awasthi wrote a letter to IFFCO Chairman to return his 1,000 square yard Hauz Khas residence, Kapur offered to return the two-floor accommodation in Vasant Vihar.

The issue relates to the CVC looking into the issue of how a prime South Delhi property of IFFCO was transferred to its Managing Director as special incentive by cooperative's board of which he is a key member.