NAFED’s Annual General Meeting at NUCI Auditorium in Delhi on Friday missed a stormy session by a whisker as delegates were prepared to voice their protest on the issue of share capital.

In a rarest of the rare cases delegates participating in the meeting forced the withdrawal of Agenda number-3.
Agenda number-3 was related to raising the share-capital price from Rs 40,000 to one lakh.

In an interview given to Indian Cooperative earlier, NAFED Chairman Bijender Singh had warned of disqualification in case of non-payment of the enhanced rate. Many of the delegates had also come, though reluctantly with a bank draft of Rs 60,000.

But the popular mood was against putting money in a sinking boat.

Indian Cooperative has learnt that there were backroom discussions between Nafed Chairman Bijender Singh and NCUI President Chandra Pal Singh Yadav in which the latter gave former an idea of restive mood of participants. Many of the directors also impressed upon the Nafed Chairman to understand the rebellious mood of delegates.

Some of the participants were prepared to raise their voice against the hike which might have led to an uncalled for situation. In a swift move the agenda was dropped before its turn came leading to wide applauds from the delegates.

Ram Kalebar Singh from Samastipur, Bihar who had raised the issue was quick to grab the mike and thanked the Chairman of staving off a storm.

Justifying their demand one of the delegates told Indian Cooperative that NAFED has not given us any dividend for a number of years. We have demanded to apply the new rate for new comers prospectively not retrospectively.

Speaking on the occasion Nafed Chairman Bijender Singh informed the delegates of steps taken by the Federation to recover the losses suffered by the agri-cooperative in tie-up business. The losses have accrued upto Rs 2000 crores, he informed.

Nafed has requested the government to give a bank guarantee of Rs 1200 crore to take care of the old loans and an amount of Rs 920 crores interest free loan for nine years, he added.

Bijender Singh also said that Nafed is taking all moves to recover the lost money with the help of investigating agencies including CBI. He promised to put Nafed back on the track with the help of governmental support.

Cooperative politics is very interesting as it witnesses the shift of power in a most unlikely manner. Virendra Singh, Chairman of NCCF must be thanking his stars for the windfall he got through the declining clouts of Nafed and its leadership.

Elected as Chairman , more than a couple of years ago, Virender Singh was taken hostage by his own Board dominated by his adversary Vishal Singh, the son of late Ajit Singh. The race for the top job was so intense that NCUI President Chandra Pal Singh had to intervene to bring truce between them.

It was rumoured that an arrangement of revolving powers has been worked out in which half the tenure of Chairmanship would go to Virendra Singh and the other half to Vishal Singh. True or not, Virendra Singh was spared the eventuality of this kind as the jinx of Nafed was on Vishal.

Bijender Singh, the strong man of Nafed and a member of the NCCF Board, always stood by Vishal. To top it,Chandra Pal Singh also nurtured fatherly affection for the young Vishal who lost his father when he was still a boy.

There were many occasions in the NCCF Board meeting when Virendra Singh would be reduced to a mere spectator while Vishal and his sympathizers would call the shots. once, a few people appointed by the Chairman as advisors were asked to quit and Virendra Singh could nothing.

But the Nafed jinx has not only weakened Vishal but also robbed Bijender Singh of much of his strength.

There are still issues that are vexing Birendra Singh. Some of the top ranking officials are also trying to have a go at the cooperative politics by siding with this or that group. They seem intent on their own selfish considerations while uncertainty surrounds the future of the cooperative leadership.

This has led to delay in many of the projects of NCCF in the past. Hope an invigorated Chairman would take calls, pressing urgently on the apex consumer cooperative body sooner than later.

The Nafed share-holders are in a fix and they do not know whether to continue their relations with the agri-cooperative or not. Their indecisiveness stems from the fact that the Nafed has turned out to be a sinking boat.

The Nafed board meanwhile has decided to raise the cost of share-price from Rs 40,000 to 1 lakh in one sweep. Though the steep hike was announced a couple of years ago, the board is insistent on its implementation with rigour now.

“Only those delegates are eligible to attend AGM who are ready to raise the stakes”, told Nafed Chairman Bijender Singh while talking to Indian Cooperative.com. It a decision taken by the board a couple of years ago and there is nothing new in it, Mr Singh added.

The question haunting the share-holders is –if it is worthwhile to invest further in a cooperative venture that shows no sign of improving In the aftermath of tie-up losses that the Nafed suffered, the government has stopped all aid to the agri-cooperative leading to a state of uncertainty.

Talking to Indian Cooperative the Nafed Chairman Bijender Singh said that the govt wanted to curtail Chairman’s powers and we conceded.

On the question why the government is not moving forward to help the pride of the cooperative sector come out of the present crisis, Bijender said “put this question to the government not to us”.

Indian Cooperative has reliably learnt that the government is waiting for the legal settlement of the issue of recovery of dues; the Court of Central Registrar had imposed on defaulters in the wake of Rs 1400 crore tie-up losses the Nafed suffered on account of wrong-doings by a few directors.

The share-holders are a confused lot. The dividend given by the Nafed is 5 to 7 per cent and this is hardly attractive enough for them to remain attached to the agri-coooperative, one of the share-holders told Indian Cooperative.

Nafed detractors meanwhile are busy fueling rumours such as the Nafed is trying to get rid of old delegates or the Nafed is trying to cover its tie-up losses through share-holders.

Bijender Singh dismissed such rumours as childish saying that the kind of losses suffered by the Nafed could never be recovered through share-holders. “The Government alone can bail the Nafed out”, he said emphatically.

The agri cooperative NAFED’s uncertainty continues as the central government and the agri-cooperative Board refuge to budge from their respective positions.

Indian Cooperative.com has gathered that the govt officials approached Nafed  with a package deal and wanted Nafed Chairman Bijendra Singh’s resignation as a part of the deal.

The Chairman Mr Singh is said to have had confabulations with the board members on the offer. The consensus that emerged from the meeting  was in favour of accepting the offer on condition that transfer of fund should precede resignation.  But the Ministry  officials rejected  the idea and insisted on  Mr Singh’s  resignation as a pre-condition.

Talking to Indiancooperative.com Bijender Singh Chairman of Nafed rubbished the news and said that no ministry officials ever contacted us or demanded resignation. “It is baseless as no offer of the revival package or the question of my resignation ever cropped up”, he added.

“We are demanding only Rs 600-700 crores for the future of Nafed and if the government agrees to this amount, not only me the entire board would resign”, he added. Only a year and an half of my tenure remains and I would not mind quitting if that brings Nafed back on track, he said.

The case of recovery of dues, meanwhile is progressing at a snail’s pace with the matter in appeal before the Additional Secretary Shri G C Pati in the Ministry of Agriculture. The next date of hearing is February 20th.

If the Additional Secretary Mr Pati disposes the matter and rules against the accused they would have the option to go for appeal in the High Court. The court of the Central Registrar, according to legal experts, has power equivalent to a trial court. The matter thus could go to the high court.

Many persons feel that the gap between what Nafed needs as a   revival package and the amount they  have to get from the people issued  recovery orders, is not big. Nafed could even do without a bailout if the recoveries are made, they argue.

The person who tops the list of dues is Homi Rajvansh who owes Rs 110 crore followed by Meena Singh and Vishal Singh,the  wife and  son of late Ajit Singh respectively. They owe Rs 64.09 crore each.

Third is Alok Ranjan, an IAS officer then  MD owes Rs 19.38 crore.

Majority of people who were in the business committee including the present Chairman Bijender Singh owe Rs 16.02 crore.

Sanjay Singh and ML Danga are the lucky ones with dues less than Rs 2 core.

But the recovery of dues is not easy, the legal course being notorious for delay and deferment in India. Once the matter reaches the High Court, the respondents may be asked by the court  to deposit a part of money as ordered by the recovery  notices prior to  a  hearing in the matter.

Indiancooperative.com has secured the amount of dues pending against each name in NAFED episode. On Monday we published only the names but now the alleged amounts are also known to this cooperative news portal.

The person who tops the list of dues is Homi Rajvansh who owes Rs 110 crore followed by Meena Singh and Vishal Singh, wife and son of late Ajit Singh respectively. They owe Rs 64.09 crore each.

Third topper is Alok Ranjan, an IAS officer who was MD at that time and owes Rs 19.38 crore.

Majority of people who were in business committee including the present Chairman Bijender Singh owes Rs 16.02 crore.

Sanjay Singh and ML Danga are the lucky ones with dues below Rs 2 cores served against them.

Details of “who owns how much” are given below against each name.

We produce below the names

1. Mrs. Meena Singh—— Rs 64.09 crore
2. Shri Vishal Singh——- Rs 64.09 crore
3. Shri C.B. Holkar——- Rs 16.02 crore
4.  Shri Bijender Singh—- Rs 16.02 crore
5. Shri G. Nagamarpally— Rs 16.02 crore
6. Shri R.S. Joon——- Rs 16.02 crore
7. Shri K. Srinivasa Gowda—- Rs 16.02 crore
8. Shri Mostafa Sardar— Rs 16.02 crore
9. Shri M.L. Danga— Rs 1crore 62 lakh
10. Shri S.B.Asthankar—-Rs one crore sixteen lakh
11. Shri Alok Ranjan— Rs 19.38 crore
12. Shri Homi Rajvansh– Rs 110 crore
13. Shri Sanjay Singh– Rs one crore fifty six lakh

The names of those against whom recovery orders have been served by the court of Central Registrar in NAFED episode are out. There are 25 persons in all, nine of them being high profile cooperative leaders and rest being the officials of NAFED.

It is a strange story of open loot in which cooperators connived with officials to maim a great cooperative institution to virtual death. And the entire cooperative fraternity of the country is looking aghast to a saga which calls for severest criticism. They must dissociate themselves from those who are found guilty in the case, for a movement is run by leaders not by government.

Voices are getting louder that those involved should quit all cooperative boards. They are citing section 43(1) (h) of MSCS Act, 2002. According to this Act no member of any multi state cooperative society or nominee of member society or a national cooperative society shall be eligible for being chosen as, or for being a member of the board of such multi state cooperative society or a national cooperative society or of any other cooperative society to which the multi state cooperative society is affiliated, if such member is a person against whom any amount due under a decree, decision or order is pending recovery under this act.

The top leaders whose name figure in the list are Meena Singh,an MP from Nitish Kumar’s JDU and wife of late Ajit Singh, during whose tenure the loot was perpetrated. Second name is that of Vishal Singh, son of Ajit Singh who presently holds board membership of not one but two multi state cooperatives—NAFED and NCCF. He has also secured a seat in the governing council of apex cooperative organization NCUI by sideling a timid NCCF Chairman Birendra Singh.

C V Holkar is the third name in the list. Holkar was vice chairman at the time tie-up business were being struck. He continues to be on the board of NAFED till date. The fourth name is that of Bijender Singh, the present Chairman. Mr Singh is a high profile cooperator who also happens to be Congress MLA from Nagloi, a West Delhi constituency. He is Chairman of National Federation of State Cooperative Bank (nafscob) as well as Chairman of Delhi State Cooperative Bank.

Two other names in the list about whom Indiancooperative.com is not sure are alleged to be former Ministers of  Karnataka cabinet.

Seventh name in the list is that of Sriniwasa Gowda who is member of board of cooperative giant IFFCO. Recently IFFCO lost an opportunity to represent India at ICA Board due to Gowda being tainted in NAFED affairs. The international forum asked the tainted leader to quit the race causing serious embarrassment to IFFCO in particular and India in general and IFFCO in particular. IFFCO sources confided to Indiancooperative.com that Gowda did not share his secrets with it.

There are many other names of cooperative leaders as well as IAS official such as Alok Ranjan and IRS officer Homi Rajvansh against whom recovery dues have been ordered. There are many nafed officials at the level of branch manager and account officers who are also in net. In the case of officials, law would indeed take its course as Homi Rajvansh was earlier arrested from Agra.

But this is high time cooperators should soul-search and brain-storm on how a credible cooperative movement is possible in the country underlining honesty and selflessness.

Credit goes to Dr Sunil Singh, former Chairman of Biscomaun and a Director at KRIBHCO who through a RTI, secured the list of those against whom recovery orders have been issued by the Central Registrar.

Detail of “who owns how much” was, however not made available citing some clause by the Ministry. Talking to indiancooperative.com Sunil Singh vowed to pursue the matter till the entire truth is out.

We produce below the names

1. Mrs. Meena Singh, W/o Late Shri Ajit Kumar Singh, ex-chairman, NAFED
2. Shri Vishal Singh, S/o Late Shri Ajit Kumar Singh, ex-chairman, NAFED
3. Shri C.B. Holkar, the then vice chairman & member, Business committee, NAFED
4. Shri Bijender Singh, the then Local Director/Member Business Committee, NAFED
5. Shri G. Nagamarpally, the then Member, Business Committee, NAFED
6. Shri R.S. Joon, the then Local Director/Member  Business Committee, NAFED
7. Shri K. Srinivasa Gowda, the then Member, Business Committee, NAFED
8. Shri Mostafa Sardar, the then Member Business Committee, NAFED
9. Shri M.L. Danga,  the then Member, Business Committee, NAFED
10. Shri S.B.Asthankar, the then Member, Business Committee, NAFED
11. Shri Alok Ranjan, the then Managing Director, NAFED
12. Shri Homi Rajvansh, the then AMD, NAFED
13. Shri N.N Subramaniam, the then Branch manager, NAFED, Chennai
14. Shri K. Subramaniam, the then Branch Manager, NAFED, Hyderabad
15. Shri R.P. Gaba, the then Branch Manager, NAFED, Ahmedabad
16. Shri S.K. Maggu, the then Accounts Officer,  NAFED
17. Shri S. Sunder, the then Branch Manager, NAFED, Pune
18. Shri K.M. Ramamurthy, the then Branch Manager, NAFED, Hyderabad/Bangalore
19. Shri Sanjay Singh, the then AM-II , NAFED
20. Sh. Kunwar Singh, the then manager (tie-up) NAFED
21. Sh. Ashok Kanwar, the then Manager NAFED
22. Shri D. Masih, the then AAO, NAFED
23. Shri R.S. Negi, the then AM-II, NAFED
24. Shri M. Ram Mohan Rao, the then Regional Manager(SZ) NAFED, Chennai
25. Shri S.N. Solanki, the then Branch Manager, NAFED, Azadpur, Delhi

As is obvious from the list, 9 to 10 of the names are those of cooperative leaders.There are two high ranking government of India officials; one is Alok Ranjan who is an IAS and another is Homi Rajvansh who is an IRS officer and was recently arrested from Agra where he served as Income Tax Commissioner. Rest of them belong to NAFED cadre.

The banking operations of State Cooperative Banks and district cooperative banks across India would come to standstill today on December 8. Nafscob, the apex body of state cooperative banks is on collision course with the government on the issue of income tax exemption.

When resolutions and delegations have failed to bear any fruit, we decided to call strike  on 8th of December on all India level, said MD of Nafscob  Mr B Subrahmanyam to Indiancooperative.com.

Subrahmanyam further said  that we have also requested urban cooperative banks numbering about 1700 to participate in the strike in our support.

Nafscob has asked all member State Cooperative Banks and all District Central Cooperative Banks to close operation for a day on 8th December for demanding restoration of tax exemptions

Income tax exemption was in vogue till 2006-07. However, with the amendment to Finance Act, 2006 this provision was done away with.

As a result of the said amendment, the income earned by the SCBs and DCCBs has become taxable with effect from the financial year 2006-07. NAFSCOB including the entire Cooperative Banking Structure has been unsuccessful in persuading Government of India  to revisit the said provision of the Act.

The Board of Directors of Nafscob in their meeting held at Bangalore on October 15, 2011 once again reviewed the efforts of Nafscob and the entire Cooperative Banking Structure in this regard and resolved not to carry out their banking business by resorting to one day Strike on December 08, 2011 as a protest  towards non-acceptance of the demand to restore the tax exemption.

Nafscob has also planned to send appeals from November on wards on continuous basis till the Union Budget is presented for the exemption to Union Government.

By Manoj Kushwaha

Speaking on the occasion of 58th All India Cooperative Week Prof  Abhijit Sen, Member  Planning Commission said that 12th five year Plan will push  cooperatives at the Centre stage.

In today’s fast changing world and stiff competition,  role of cooperatives for the marginalized and downtrodden segment needs no emphasis.  There are several  models  which are working on the principle of cooperation. Self-help group is a case in point which is empowering  women of the country through micro credit, he added.

Mr Sen also accused  cooperatives of failing this country even though agriculture, rural development and rural infrastructure need cooperative management for higher GDP.

At the time of crises of Indian economy, cooperative sector has stood like bulwark to the ill effect of recession and enabled sustain livelihood and provide rural purchasing power.

He emphasized that  cooperatives is a must for all form of business and among various kinds of cooperative organisations in the country.

Shri Shivaji Rao G. Patil, Chairman, National Heavy Engineering Cooperatives and Chairman, High Powered Committee on Cooperation said that cooperatives are the vital instrument for inclusive growth as it has the capacity to serve the small and marginal farmers and un-skilled and disadvantageous group of the economy.  He desired that role of cooperatives is important in the era of liberalisation to provide the protective shield to the ”Aam Aadmi”.

Shri Bijay Kumar, IAS, Managing Director, National Horticulture Board, Government of India emphasised the unique ownership pattern of cooperatives which places members of cooperatives in a better position in the market economy.  He said that value based business cooperative models are need of the hour as it give strength to the common masses who do not have enough capital in the market infusion, and said that cooperatives should enjoy the full autonomy without any interference for their functioning.

Dr. A.B. Shukla, Registrar Cooperative Societies of Government of NCT of Delhi said that the concept of cooperatives did not come from foreign shore but was part and parcel of Indian ethos and culture.  When we look at the functioning of the cooperative, he emphasised that Office Bearers should own the responsibility as also the success of their cooperatives and adhere to cooperative values and ethics as this is an ingredient for success of cooperatives.

Dr. Bijender Singh, Chairman, NAFED who was presiding over the inaugural function said that 58th All India Cooperative Week is held at a time when United Nation has declared 2012 as an International Year for Cooperatives. This will give ample opportunity for the cooperatives to promote their brands and visibility in the country.

Vote of thanks was proposed by Shri Ashok Dabas, Member of Governing Council of NCUI to the participants and the representatives of Cooperative Societies, Teachers and students of various schools and institutions who participated in the function.

Dr. Dinesh, Chief Executive, NCUI read out the messages received from VIPs and dignitaries on the occasion of 58th All India Cooperative Week.

Central Registrar Mr R K Tiwary has virtually lobbed a bombshell by sending recovery order to Chairman and several directors of NAFED in Rupees 4000 thousand crore tie-up scam. Some of the names of present and former Directors whom recovery notices have been served with are Mr Bijender Singh, present Chairman, Mr C V Holkar, present Director, Shri Niwas Gauda,former Director,Nagar Dalli, former Director,Mr Makker former Director  from Punjab. There are two former ministers from Karnataka in the list.

There are 29 officials of Nafed also in the list who have been served with recovery notices.

Talking to Indiancooperative.com Congress MLA and senior cooperative leader Bijender Singh confirmed the receipt of the letter. “Order is at best vague and I have been asked to deposit one percent of 30 percent”, said Mr Singh. Bijender was not able to make much out of it but Ministry sources put the figure around Rs12 crores.

Vishal Singh, son of former Chairman Ajit Singh during whose tenure the scam took place has reportedly been served with a notice of depositing about Rs 65 crores. Talking to Indiancooperative.com Vishal denied receiving any letter from Central Registrar so far and argued that he was a minor when the whole scam unfolded. Vishal later was elected to the Board of NAFED.

Ajit Singh’s mother and wife of cooperative doyen Tapeshwar Singh Indu Devi has been exonerated of all charges given her severance of relation with Ajit Singh in 2004 after he joined JDU. The court of Central Registrar ruled that Indu Devi has not acquired any movable or unmovable properties since the scam broke out.

Homi Rajvansh, the then additional MD has reportedly been served with notice of depositing Rs 132 crores. The list includes many big names and its release has created quite a flutter in political circle.

People are wondering as to how did an easy going Central Registrar issue earth shattering order? Ministry sources confirm that it was the steely decision of Secretary Basu who prevailed not only on Tiwary but also on Minister Sharad Pawar to take stern action against the guilty.

Political circles are abuzz with some gunning for transfer of Central Registrar too. Leaders cutting across party lines, it is said, have risen up against the order with murmurs emanating from AICC also.

Nafed scam is being investigated by Central Bureau of Investigation also and the Agency has arrested Homi Rajvansh and a few private contractors earlier.

Earlier high profile former Lokayukta of Karnataka Santosh Hegde had recommended that the State government should request Centre  to take action against NAFED in the case of llegal mining.

In a Chapter titled ‘Illegal export by NAFED’, Santosh Hegde has said that NAFED has been involved in dubious transactions and transport of iron ore to various ports.

Readers may recall that the business committee of Nafed in 2003-4 entered into tie up business with many private parties leading to huge loss to Nafed. Top officials with their “notorious tie-ups” with some private businesses allegedly made Nafed extend counter guarantees on loans taken by them without any security, with the connivance of a few board members.