The Centre has cancelled the approval granted to the Youth Rural Entrepreneur Foundation (YREF), a company limited by guarantee, allegedly run by ‘conman’ Sanjay Prakash Rai Sherpuria, to set up a Rs 5.85 crore Breed Multiplication Farm under the Rashtriya Gokul Mission. As reported by The Indian Express on April 29, the Department of Animal Husbandry, under the Union Ministry of Fisheries, Animal Husbandry & Dairying, had approved a grant of Rs 2 crore to YREF, as financial assistance in the form of subsidy through the National Dairy Development Board (NDDB), for the project in December last year. In a letter last month, the ministry informed YREF that the approval for the project has been cancelled with “immediate effect”. An official said the decision was taken before the release of the Rs 2 crore grant. “This is in reference to the department’s letter No. 04003/48/ 2022 dated 1st December 2022, regarding approval of the Breed Multiplication Farm project. It is to inform you that the approval for the BMF project for BMF application No. BMF220300370 of Youth Rural Entrepreneur Foundation stands cancelled with immediate effect,” Dr Bhushan Tyagi, Joint Commissioner, Department of Animal Husbandry & Dairying, said in the letter dated July 5. The department has also informed the NDDB about its decision. Sources said the decision was taken in view of Sherpuria's arrest. Sherpuria was arrested by the Uttar Pradesh Special Task Force in April for fraudulently “misusing” the PM’s name for personal gain and allegedly faking access to the PMO and Cabinet Ministers to allegedly dupe businessmen. The UP STF action was taken on a reference from the Enforcement Directorate (ED) which first began probing him. According to the ED, its probe has revealed that Sherpuria cheated several persons by portraying himself close to VIPs. The BMF initiative is aimed at making available to farmers high genetic merit heifers of cattle, and buffalo breeds. Under the scheme, the Centre provides 50 per cent capital subsidy (limited to Rs 2 crore) to the entrepreneur for construction of cattle sheds, equipment, procurement of elite bull mothers, etc. As per records of the Union Ministry of Corporate Affairs, YREF was incorporated on October 30, 2019. In its FIR, the UP Police has said the company is run by Sherpuria. As reported by The Indian Express earlier this week, the ED, in its prosecution complaint against Sherpuria, has said that industrialist Gaurav Dalmia gave him Rs 12 crore, including Rs 6 crore to YREF, in lieu of help promised by the 'conman' in an ED case. “ED investigation revealed that Sanjay Prakash Rai (Sherpuria) duped businessman Gaurav Dalmia and his family to the tune of Rs 12 crore by showing him fear of his arrest in an ongoing investigation conducted by ED… of the said Rs 12 crore, Rs 6 crore (was) received in the bank account of YREF in January 2023 from Dalmia Family Office Trust, wherein Gaurav Dalmia is trustee,” the ED said. “In addition…a sum of Rs 6 crore (was) received in cash by Sanjay Prakash Rai from Gaurav Dalmia which were subsequently layered and placed in the bank accounts of his sons Yash Sanjayprakash Rai and Sujal Sanjayprakash Rai in the form of accommodation entries from certain Delhi-based jewellers in the garb of sale of old jewellery,” it said.
