The Department of Fertilisers recently endorsed the bid to put the Indian Farmers Fertiliser Cooperative IFFCO under direct watch of the Central Vigilance Commission CVC.
The department issued the office memorandum on the day The Indian Express reported that IFFCO had illegally transferred the ownership and title of a Rs 50-crore bungalow to its managing director U S Awasthi,making him its absolute owner.
Vigilance activities of both multi-state cooperative societies IFFCO and KRIBHCO stand covered under administrative jurisdiction of the Department of Fertilisers, says the March 1 order,emphasising that the decision by members,office-bearers and employees of these cooperatives was covered under the CVC Act.
Documents show that the order came a month after the Department of Personnel amp; Training DoPT directed all ministries to take appropriate action against such cooperatives.
However,the Department of Fertilisers made no move to appoint its own chief vigilance officer even as CVC Pradeep Kumar sought a report from the CVO of the cooperative for reference to the CBI,if required.
That it came in the wake of media reports against IFFCO is borne by the fact that DoPTs order mentioned NAFED,KRIBHCO and similar societies and had not singled out IFFCO.
Multi-state cooperatives have been accused of indulging in malpractices but were escaping public scrutiny on the ground that since they did not receive funding from the government,their business affairs could not be reviewed by the CVC.
Last January,this ambiguity was removed after the Attorney General opined that these cooperatives were within the purview of the Prevention of Corruption Act and the CVC was empowered to exercise jurisdiction over them. The AGs view was endorsed by the Law Ministry.