Nafed sacks its MD over fund misuse

MD denies allegations

The board of directors of the National Agricultural Cooperative Marketing Federation of India Ltd (Nafed) today removed its managing director, C V Ananda Bose, a 1977-batch IAS officer of the Kerala cadre, for alleged misuse of funds. Bose denied all charges and said he had been appointed by the government and would remain the MD.

“The Board cannot replace an official sent by the government. I had been sent by the government to control corruption and streamline the system. This is arm-twisting and I care two hoots about it,” Bose, MD since last September, told Business Standard. He is also chairman of the Coconut Development Board, since this April.

Nafed’s chairman had something different to say. “The Board has taken a resolution to repatriate Bose because of his misconduct and misuse of funds for personal ends,” said Bijender Singh, who was elected chairman last July. Singh is also a Congress party member in the Delhi Legislative Assembly.

He said the Board had appointed P K Sharma, additional managing director, as interim MD. “We have requested the government to form a committee to search a new managing director,” Singh told Business Standard.

Nafed had been in losses since 2003. There have been allegations of corruption in the tie-ups it entered into with private companies for foreign trade. Under the 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. Bose had earlier opposed the proposal for a one-time settlement with these defaulters, saying the government has asked not to settle dues without a transparent structure.

“Nafed is a den of corruption. After taking charge, I suspended a few corrupt officials. However, some Board members had also been indulging in corruption, against which I had initiated an action. I had also sent a report against Sharma (the official chosen by Board as interim managing director) to the government,” Bose said.

A public interest suit had recently been filed at the high court here, alleging corruption in Nafed. “The Board had appointed a committee which also had the agriculture secretary as its member to control corruption. The report is ready and I was about to be submit it to the government. They are trying to remove me before the report gets submitted,” Bose alleged.

“The government will come down heavily on the corrupt Nafed officials. I consider this as a battle of the right against the might,” he added.