The Central Vigilance Commission is looking into complaints of alleged corruption against Managing Director and Joint Managing Director of Indian Farmers Fertilizer Cooperative (IFFCO).
The charges includes two illegal contracts for cornering a posh bungalow worth crores in the national capital from the society's fund and prevailing "lawlessness" in IFFCO, the Government said today.
"CVC has received complaints against U S Awasthi, MD, IFFCO and (Rakesh) Kapoor, Joint MD, IFFCO," Minister of State for Personnel, Public Grievances and Pensions V Narayanasamy told Rajya Sabha in a written reply.
The complaints including subsidy frauds by opening Kisan International Trading, a 100 per cent subsidiary in Dubai, earning huge illegal commission in imports of raw materials and finished fertilizers thereby creating huge loss to society and manipulation of election of the board of IFFCO and prevailing lawlessness among others are being looked into by the CVC, he said.
The complaint of alleged transfer of IFFCO property worth several crore in Hauz Khas, Vasant kunj, New Delhi in their name is also being looked into by the CVC, the Minister said.
CBI has not registered any complaint against the two top executives of IFFCO, he said.
To a question whether officers of IFFCO are covered under CBI and CVC to probe corruption charges, the government cited an opinion from Attorney General of India saying multi state cooperatives including IFFCO were under jurisdiction of both the agencies.
"Attorney General of India, on a reference made by the Government has opined that the members, office bearers and employees of the multi-state cooperative societies would fall within the purview of Section 2 (c) of the Prevention of Corruption Act and the CVC is duly empowered to exercise jurisdiction over such societies under Section 8 (1) of the CVC, Act, 2003. IFFCO is also a similar society," he said.
CBI conducts investigation against the public servants as defined under Section 2 (c) of PC Act, 1988, he said.
The Section defines category of a public servant who could be covered under the PC Act.
The Ministry of Personnel had in February this year issued an order, saying the CVC was duly empowered to exercise jurisdiction over multi-state cooperative societies which includes National Agricultural Cooperative Marketing Federation of India Ltd (NAFED), Krishak Bharati Cooperative Ltd (KRIBHCO) and IFCCO among others.
