Lok Sabha Question No. 3441 (UNSTARRED), answered on 2018-08-07
Subject: Issues related to IFFCO
Ministry: CHEMICALS AND FERTILIZERS
Asked by: P.R. SUNDARAM, PREM SINGH CHANDUMAJRA

## GOVERNMENT OF INDIA MINISTRY OF CHEMICALS & FERTILIZERS DEPARTMENT OF FERTILIZERS

## LOK SABHA

## UNSTARRED QUESTION NO 3441 TO BE ANSWERED ON: 07.08.2018 Issues related to IFFCO

## 3441. SHRI PR: SUNDARAM: PROF. PREM SINGHCHANDUMAJRA:

Will the Minister of CHEMICALSAND FERTILIZERS be pleased to state:

- (a) whether it is a fact that IFFCO have repatriated Government of India equity in violation of the IFFCO by-lawsillegally and unlawfully;
- (b) if so, the details thereof;
- (c) whether any criminal action hasbeen initiated against the managements, Directors and other officials of IFFCO for cheating the Government and if not; the reasons therefor;
- (d) whether the Government has received various complaints   pertaining to corruption; irregularities and misconduct of officials of India Farmers Cooperative Limited (IFFCO) including its Managing Director and his family members , if the details and names of each official with alleged charges of corruption, misconduct and irregularities, separately; and SO,
- (e) the names of investigating agencies which are probing the charges against officials of IFFCO and the present status of each case as on 31st 2018 May,

## ANSWER

MINISTER OF STATE (INDEPENDENT CHARGE) OF THE MINISTRY OF PLANING AND MINISTER OF  STATE IN THE MINISTRY OF CHEMICALS FERILIZERS

## (RAO INDERJIT SINGH)

(a) & (b): The repatriation of Government of India equity by Indian Farmers Fertilizer Cooperative Limited (IFFCO) is disputed as it was done as per amended bye-laws of IFFCO, 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 (MSCS) Act; 2002.

- (c) to (e): Government has received various complaints pertaining to corruption, misconduct of IFFCO officials, irregularity in IFFCO including manipulating laws of society and illegal repatriation of Government Equity by IFFCO Board. The details of the various complaints related to cases of corruption and irregularities against officials of IFFCO including its Managing Director and his family members received in this Department are placed at Annexure-A: Department of Fertilizers has referred various complaints pertaining to corruption and irregularities in IFFCO to CBI for enquirylreports and the samie are awaited. bye-

## Annexure-A

- (1) A of Parliament (LS): The complaint has been referred to CBI vide this Department's letter dated 14.06.2016.
- (2) A complaint dated 6.05.2016 received from Sh. Sudish Kumar Tripathi. The complaint has been referred to CBI vide letter dated 05.09.2016.
- (3) A complaint dated 15.09.2017 has been   received from Global Wellness Foundation. The complaint has been referred to CBl vide this Department's
- (4) A complaint dated 'NIL' of Sh. Kul Bhushan Rai Chuchra has been received from CVC vide OM dated 16.06.2017 . The complaint has been referred to CBI vide this Department's letter dated 01.05.2018.
- (5) The complaint has been referred to CBI vide this Department's letter dated 14.09.2017.

In all above mentioned cases CBl has been requested for enquiry and to send reports in these matters.

## Gist of the above complaints is as follows:

The complaints mentioned above mainly alleged gross mismanagement of funds along with siphoning off money and fabricated balance sheet by IFFCO, wrong disclosures in violation of established accounting practices and misleading the stakeholders  especially the banks by IFFCO, manipulation of Multi-State Co-operative Act and further manipulating bye laws of society and illegal   repatriation of Government equity by IFFCO Board, regular money laundering process adopted by Shri U.S. Awasthi, MD, his sons, his relatives and his friends associated with IFFCO, illegal and unlawful method adopted by Shri U.S. Awasthi to the guest house and bungalow, subsidy frauds by Shri U.S. Awasthi by opening Kisan International Trading, earning huge illegal commission in imports of raw materials and finished fertilizer thereby creating huge loss to society; illegally extending his term of superannuation beyond the age of 65 years,  increasing remuneration to Shri US Awasthi and other functional directors; seeking favours from political parties by extending donations in a camouflaged way in violations of Multi State Co-operative Societies Act; deviation from  cO-operative law by IFFCO Board not  appointing women director or SC director in IFFCO Board and appointment of 30 directors in board of directors,  defrauding the government by manipulating sales and  claiming higher subsidy, illegally inducting his kith and kin on suitable posts in IFFCO by MD, IFFCO and misusing resources and facility of IFFCO. grab posh