Lok Sabha Question No. 1635 (UNSTARRED), answered on 2018-03-06
Subject: Conflict of Interest in Cooperative Fertilizer Units
Ministry: CHEMICALS AND FERTILIZERS
Asked by: DARSHANA VIKRAM JARDOSH

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

## LOK SABHA

## UNSTARRED QUESTION NO. 1635 TO BE ANSWERED ON: 06.03.2018

## Conflict of Interest in Co-operative Fertilizer Units

## 1635. SHRIMATI DARSHANA VIKRAM JARDOSH :

Will the Minister of CHEMICALS AND FERTILIZERS be pleased to state?

- (a) whether the Ministry has received any information/representation regarding alleged  conflict  of  interest  activities  in  cooperative  fertilizer  units,  if  so,  the details of the   action taken to stop it and if not; the reasons therefor;
- (b) whether the Ministry has received any input from the Ministry of Agriculture and  Farmers  Welfare  to  curb  conflict  of  interest  activities  in  cooperative fertilizer units and if so, the details thereof; and
- (c) the details of cases referred to CBI for investigation by the Ministry during the last one year along with the dates when it was forwarded, case-wise?

## ANSWER

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

## (RAO INDERJIT SINGH)

- (a) : This  Department  has  received  3  complaints  related  to  corruption  and irregularities in Indian Farmers Fertiliser Cooperative Limited (IFFCO) and Krishak Bharati Cooperative Ltd (KRIBHCO) and have been referred to CBI for investigation.
- (b) : Department of Agriculture, Cooperation and Farmers Welfare (DAC &FW) has sought certain information relating to subsidiary companies of KRIBHCO, New Delhi  on  the  basis  of  multiple  complaints  and  the  same  was  received  from KRIBHCO and further action, if any, would be taken as per the provisions of the Multi State Cooperative Societies Act, 2002 and rules made there under.
- (c) : The details of cases referred to CBI for investigation are as under:

## IFFCO:

The  complaints  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 manipulation of  bye laws of society and illegal repatriation of Government equity  by  IFFCO  Board,  regular  money  laundering  process  adopted  by  U.S. Awasthi,  MD and his sons,  his relatives  and  his friends associated  with  IFFCO; illegal and unlawful method adopted by U.S. Awasthi to grab the guest house and posh  bungalow;  subsidy  frauds  by  U.S.  Awasthi,  MD,  IFFCO  by  opening  Kisan International Trading; earning huge illegal commission in imports of raw materials and finished fertilizer thereby creating huge loss to the society. The complaint has been referred to CBI on 21.11.2017 and report from CBI is awaited.

## KRIBHCO:

- 1)  Complaint  dated  15.11.2017  received  from  Sh.  Upendra  Sing  V.  Rathva, Gujarat and referred to CBI on 12.02.2018.
- 2)  Complaint dated NIL received from Sh. B. K. Patel, Gujarat and referred to CBI on 12.02.2018.

These  complaints  mainly  alleged  irregularities  by  Dr.  Chandrapal  Yadav, Chairman KRIBHCO and Director & Chairman, KRIL (KRIBHCO'S wholly owned subsidiary  company)  in  setting  up  a  joint  venture  company  namely  M/s  Anya Polytech & Fertilizers Ltd, Noida with his son Sh. Yashpal Yadav and allegations related to setting up DAP/NPK project at A.P. by KRIBHCO.  The complaints have been referred to CBI on 12.02.2018 and report from CBI is awaited.

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