The government today said it has asked the CBI to probe complaints of irregularities at IFFCO, including alleged money laundering by its chief and the illegal repatriation of government's equity.
The complaints received between 2013 and 2017 are related to the cases of corruption and irregularities against officials of Indian Farmers Fertiliser Cooperative Ltd (IFFCO), including its managing director U S Awasthi and his family members.
"Department of Fertilisers has reffered various complaints pertaining to corruption and irregularities in IFFCO to CBI for enquiry/reports and the same are awaited," Minister of State for Fertilisers Rao Inderjit Singh said in a written reply to the Lok Sabha.
The cases, which the fertiliser ministry has asked CBI to probe, are related to alleged money laundering by the IFFCO managing director, his sons, relatives and friends associated with the cooperative, he said.
They also relate to alleged grabbing of the guest house and posh bungalow by Awasthi in an illegal and unlawful manner, subsidy fraud by opening Kisan International Trading, earning huge illegal commission in imports of raw materials and finished fertilisers thereby creating huge loss to the society, the minister added.
The minister further mentioned that the cases to be probed also include alleged "illegal extension of Awasthi's term of superannuation beyond the age of 65 years, increasing his remuneration and other functional directors, seeking favours from political parties by extending donations in a camouflaged way in violation of Multi State Cooperative Societies Act (MSCS), 2002".
The cases are also related to alleged defrauding the government by manipulating sales and claiming higher subsidy, illegally inducting kith and kin on suitable posts in IFFCO by Awasthi and misusing resources and facility of the cooperative, he added.
Besides, the cases are also related to alleged gross mismanagement of funds along with siphoning off money and fabricating balance sheet by IFFCO, wrong disclosures in violation of established accounting practices and misleading the stakeholders, especially the banks, by IFFCO.
The complaints also include manipulation of Multi State Cooperative Societies Act, further manipulating bye laws of society and illegal repatriation of the government equity by IFFCO Board, the minister said.
On the repatriation of the central government's equity by IFFCO, he said it is "disputed as it was done as per the amended bye-laws of the cooperative which were illegally and unlawfully amended without following the laid down procedure of then bye-laws of IFFCO after enactment of Multi State Cooperative Societies Act, 2002".
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