IFFCO refunds Rs 1.98cr to govt on account of subsidy loss

As CBI registered a case against one of its officials for alleged diversion of urea, cooperative major IFFCO has refunded nearly Rs 2 crore to the Fertiliser Ministry on account of loss of subsidy to the exchequer.
CBI recently registered a case against an official of Indian Farmers Fertilisers Cooperative Ltd (IFFCO) and two others for allegedly pilfering subsidised urea worth Rs 2.41 crore meant for farmers in Kerala.
IFFCO has suspended the concerned official and ordered a departmental inquiry.
The assumed loss of subsidy as per computations made by the Investigating Officer, pertaining to IFFCO urea/NP works out to Rs 1.98 crore only, the IFFCO said in a letter to the Fertiliser Ministry.

Stating that the truth will be known after investigation and completion of trial, which is a long-drawn and time consuming process, IFFCO said it has decided to refund the amount to avoid any interest burden on the cooperative.
"In order to avoid any interest burden in the event of any subsidy being held to be refundable, IFFCO has decided to refund an amount of Rs 1.98 crore, being the loss alleged to have been occurred on account of diversion of IFFCO Urea/NP," the letter added.

The government has fixed the maximum retail price of urea at Rs 5,360 per tonne. The difference between the MRP and the cost of production is reimbursed to manufacturers by the government in form of subsidy.

A case of cheating and provisions of Prevention of Corruption Act has been registered against Gopala Krishnan, then Senior Officer Incharge IFFCO, Akhil T Gopi, then Field Officer Incharge (Trainee), Kerala State Cooperative Marketing Federation (Marketfed) and CG Pauly, a transport contractor in Thrissur (Kerala).
IFFCO has suspended Gopalakrishnan and Transport Contractor, C G Pauly, pending enquiry, the cooperative said in the letter.