CBI books IFFCO CEO Awasthi in corruption case, conducts searches

Conducts search operation at 12 premises in Delhi, Mumbai and Gurugram

The Central Bureau of Investigation (CBI) has filed a corruption case against Indian Farmers Fertiliser Cooperative’s (IFFCO’s) managing director (MD) and chief executive officer (CEO) US Awasthi and some directors in connection with discrepancies in the import of fertilisers and claiming subsidies.
 
IFFCO is a multi-state cooperative society engaged in the business of manufacturing and marketing fertilisers.
 
The CBI also booked MD of Indian Potash Parvinder Singh Gahlaut and his and Awasthi’s sons, among others, in the case.
 
Following the first information report (FIR) filed on Wednesday, the federal agency conducted a massive search operation at 12 premises linked to Awasthi and Gahlaut in Delhi, Mumbai and Gurugram, according to CBI officials.
 
During the searches, the agency found cash worth Rs 8.8 lakh at the premises of Awasthi. Fixed deposits of over Rs 5.5 crore in the name of Gahlaut and his family were also recovered. The agency’s officers also took possession of documents with respect to 19 immovable properties.
 
The matter pertains to the accused allegedly claiming higher subsidies from the government by importing fertilisers at inflated prices and receiving commission from the supplier through sham transactions, the officials said.

 
The fertilisers are supplied to farmers on which the government provides a subsidy to keep the prices reasonable, it alleged.
 
IFFCO and Indian Potash have been importing huge quantities of fertilisers running into several thousands of tonnes and raw materials for fertilisers from various foreign suppliers.
 
The CBI has alleged that the accused, in order to cheat the government by claiming a higher subsidy, imported fertilisers and raw materials through Kisan International Trading FZE in Dubai (a subsidiary of IFFCO) and other middlemen at highly-inflated rates.
 
The inflated prices covered the commission meant for Awasthi and Gahlaut, which was transferred by the overseas suppliers to them through sham transactions, the CBI noted.
 
The agency also booked Awasthi's sons Amol, the promoter of Catalyst Business Associate, and Anupam, the promoter of Catalyst Business Solutions.
 
Besides, the CBI also named Gahlaut's son Vivek, Pankaj Jain of Dubai-based Jyoti Group of Companies and Rare Earth Group and chartered accountant Rajiv Saxena, who is also the promoter of Midas Metal International LLC, and other companies, as accused.