Government gives clean chit to Nafed MD

Says federation has no right to sack or appoint on its own.

The government has given a clean chit to National Agricultural Cooperative Marketing Federation of India Ltd (Nafed) Managing Director C V Ananda Bose, who was removed last week by the federation board for alleged misuse of funds.

The agriculture ministry today held the board’s decision null and void. It also decided to remove Nafed’s Additional Managing Director, P K Sharma, for involving his relatives in the cooperatives business. Sharma had been named by Nafed’s board to officiate in Bose’s post.

“The board has all the right to seek a new managing director, but it cannot sack or appoint on its own. Moreover, we have inquired into the allegations against Bose and nothing has been found against him. So, he continues as the managing director,” K V Thomas, minister of state for agriculture, told Business Standard.

Thomas said Bose was sent to Nafed by the government after a request from Nafed. “If they (the board members) had a complaint against Bose, they should refer the matter to the government.”

Last week, the board, led by Chairman Bijender Singh, took a unilateral decision to send Bose back and had requested the ministry to form a committee to select a new managing director. Bose, a 1977-batch IAS officer of the Kerala cadre, had denied all allegations and said he was paying the price for his crusade against corruption. Singh could not be reached for comment.

“We have decided to remove Sharma from Nafed as he has been found to have involved some of his relatives in the cooperative business,” said a ministry official. The agriculture ministry has sent a report against Sharma to the Ministry of Environment and Forests.

Thomas said the government would find a way out for Nafed’s proper functioning. “Nafed can function only with the government assistance. The Centre has decided to give Rs 1,200 crore as aid to Nafed for its revival. If it does not function as per the government’s law, then we may have to rethink on giving the aid.”

Nafed has been in losses since 2003. There have been allegations of corruption in the tie-up businesses it entered into with private companies for import and export business, with a loss of Rs 1,600 crore since 2003. Under the tie-up arrangement, Nafed had released advances to 62 private companies to undertake import and export. Nafed is yet to recover its dues from as many as 27 of these.