Taking cognizance of The Pioneer expose’ about the transfer of a prime property in South Delhi by Indian Farmers Fertilizer Cooperative limited (IFFCO) to its Managing Director Uday Shankar Awasthi and his deputy Rakesh Kapoor as an incentive for their services, the Ministry of Agriculture has sought clarification from IFFCO.
In a related development, IFFCO MD is reported to have met Union Agriculture Minister Sharad Pawar. It has also emerged that Awasthi reportedly tried to mislead the Ministry and tried to impress upon that the property of IFFCO was not a public property and there was no conflict of interest in an officer receiving compensation or ex-gratia in recognition of his contributions. The Central Vigilance Commission is investigating this issue.
Insiders said that though there is no government equity in IFFCO, but the cooperative is governed by the Multi-State Cooperative Societies Act. “That’s why the Ministry has sought clarification from IFFCO on this issue,” they added.
left with no other option after The Pioneer expose’, Awasthi and his deputy had decided to relinquish the title of the prime property (l-4 in Hauz Khas Enclave) in favour of IFFCO and the one in posh Vasant Vihar. Strangely, neither Awasthi nor his deputy has approached the Sub Registrar office for cancellation of conveyance deed till date.
Awasthi was faced with question of proprieties whether he could seek a 1000 yard property in posh colony such as Hauz Khas Enclave that belongs to IFFCO in the name of ex-gratia for his services to IFFCO.
Meanwhile, a senior official said that steps were afoot to examine whether the government has legal control over IFFCO. It is a fact that IFFCO is not a private company but a cooperative governed by certain cooperative principles, hence its MD and other officials fall under the purview of the government, he added.
The official further added that IFFCO has reached to this height in business because of the initial funding by the government. “It may be a common practice in private firms to reward CEOs and MDs with such kind of gifts for their contribution to company’s growth but not in cooperatives,” he observed.