Iffco board refers CVC issue to AGM

The Board of fertiliser major Iffco has decided to put to vote the issue of government move to bring it under the purview of CVC at its shareholder meet in May.

New Delhi: The Board of fertiliser major Iffco has decided to put to vote the issue of government move to bring it under the purview of CVC at its shareholder meet in May.

Following a controversy over Iffco gifting its top executive prime properties in South Delhi, the government had decided to bring it as well as the other fertiliser cooperative Kirbhco under the purview of the anti-graft body Central Vigilance Commission (CVC).

While Iffco had in a preliminary reply explained the legal position that cooperative where government has no shareholding cannot be subject to CVC, the 30-member Board of Iffco deliberated the issue on March 20.

Sources privy to the deliberation said the Board was of the view that cooperatives can be brought under CVC only when the government amends the Cooperatives Act but considering the seriousness of the matter decided to refer it to its shareholders.

The annual general body meeting of shareholders of Iffco is likely in second half of May.

The board also deliberated Iffco Managing Director U S Awasthi and his deputy Rakesh Kapur's offer to return the properties they got as gift.

Their offer was rejected, sources said.

Indian Farmers Fertiliser Cooperative (Iffco) is managed by a board which is elected by 40,000 cooperative societies spread across the country. The government has no role either in the management or the running of the nation's largest fertiliser seller.

The Board was unanimous on the fact that Iffco has no direct or indirect government holding, debt or guarantee and to legally bring it under CVC, the government will have to amend the Cooperatives Act and bring all cooperative bodies under purview of CVC.

The AGM will consider the letter of the Fertiliser Ministry stating that multi-state cooperative societies Iffco and Kribhco fall under its administrative jurisdiction and their decisions as well as members, office-bearers and employees are covered under the CVC Act.

Earlier this month, Awasthi and Kapur had offered to relinquish their posh accommodations following debate over propriety of chief executives of a company getting prime residential premises as gifts for services rendered.

While Awasthi wrote a letter to Iffco Chairman to return his 1,000 square yard Hauz Khas residence, Kapur offered to return the two-floor accommodation in Vasant Vihar.

PTI