Centre recommends CBI probe into corruption in NAFED

New Delhi, July 24 (UNI) The Centre today submitted before the Delhi High Court that it had recommended a CBI inquiry into the alleged swindling of more than Rs 3,600 crore in the National Agricultural Cooperative Marketing Federation of India (NAFED).

In an affidavit, the government stated that the Department of Agriculture and Cooperation (DAC) was extremely concerned with the gravity of allegations levelled against NAFED and "it had aready initiated action by formally requesting the CBI to inquire into these allegations." The Government has requested the Comptroller and Auditor General (CAG) to conduct audit of price support scheme operations undertaken by NAFED between 2005-06, said the affidavit.

The affidavit said the Centre had neither provided any budgetary support nor any stake in the share capital of the multi-state cooperative society which was governed by the MSCS Act, 2002.

Besides, it was also not privy to any tie-up businesses entered by the society, it added.

It submitted that the Union government's role was just limited to the Price Support scheme operations for certain commodities like procurement of 14 varieties of oilseeds and pulses whenever the prices fell below the minimium support price (MSP).

''The procurement is continued by NAFED until the prices are stablised and is over the MSP. After the procurement, the NAFED disposes the procured stock at the best realisable price. The losses on such price support operations are borne by the Government,'' the affidavit stated.

Replying to a PIL, the government also denied having given any consent to NAFED for extension of services of retired personnel.

The petition filed by a social activist Vikas Jain through Counsel Sugriv Dubey had alleged that NAFED had extended loans to the tune of Rs 3,500 crore to various individuals and firms without verifying their antecedents and without ensuring proper security.

"Those individuals and firms stood guarantee or surety for about Rs 3,500 crore and also NAFED took loans from different nationalised and private banks and extended loans to those individuals and firms who did not have any credibility," the petition said.

Many of the people and firms who had taken loans from NAFED were blacklisted by the nationalised banks and did not even return the money, said the petitioner.

UNI PAT PA RK2021