Corruption-mired Indian Farmers Fertiliser Co-operative Society (IFFCO) falls under the purview of Central anti-graft agencies like CVC and CBI, the Government made it clear on Thursday.
Officials of multi-state cooperative societies like KRIBHCO and IFFCO are under the ambit of anti-corruption law and they can be probed and prosecuted on graft charges by CVC and CBI, the Government maintained.
The Government’s stance comes even as IFFCO has moved a petition in the Delhi High Court challenging the Central Government’s decision to put the cooperative under the direct watch of the CVC. IFFCO contended that the Government has no shareholding in it and is under the “mistaken belief” that it has jurisdiction on the cooperative.
In a written reply in the Rajya Sabha, Minister of State for Personnel, Public Grievances and Pensions V Narayanasamy stated that members, office bearers and employees of multi-state cooperatives like KRIBHCO and IFFCO are covered under the ambit of Prevention of Corruption Act.
Narayansamy said that the Government has recently clarified the legal position in this regard after obtaining the Attorney General’s opinion. The AG, on a reference made by the Government, had opined that members, office bearers and employees of multi-state cooperative societies would fall within the purview of Section 2 (c) of the PC Act, and the CVC and CBI can launch probe against them. The section defines various categories of public servants who can be covered under the PCA.
Multi-state cooperatives have been accused of indulging in malpractices but were escaping public scrutiny on the ground that since they did not receive funding from the Government, their business affairs could not be reviewed by the CVC.
Following the Department of Personnel and Training (DoPT) circular directing all Ministries to take “appropriate action” against such cooperatives. The Ministry of Fertilisers has endorsed the bid to put the IFFCO under direct watch of the Central Vigilance Commission (CVC).
The controversy started after The Pioneer first reported that IFFCO MD (and also Joint MD) has gifted himself prime property in South Delhi. The Deputy Commissioner (DC)of South West district, Nikhil Kumar wrote to Pradeep Kumar, the Central Vigilance Commissioner (CVC), Ashish Bahuguna Secretary (Agriculture), Sudhir Mittal Secretary (Fertilizers), Dalip Singh Additional Secretary (Cooperation) and RK Tiwari Joint Secretary (Cooperation) and Divisional Commissioner of Delhi, about the brazen abuse of DoPT guidelines.
The two properties are estimated to be over Rs 80-100 crore and are located in posh Hauz Khas. The area houses the high and mighty of the society.