The NCCF Board meeting on 21st January, in which the Managing Director could not participate and the Board went ahead with its business as usual, has created a storm in the Consumer Affairs Ministry. Realizing that it has been marginalized by the cooperators the Ministry has issued a notice to National Consumer Cooperative Federation under section 22 of MSCS Act 2002.
The notice and the letter try to threaten the Chairman and Board members into submission by raking issues which are unrelated to the present issue but detrimental to the reputation of cooperators, said one of the Board members to Indian Cooperative.
Indian Cooperative has accessed the letter written by the Ministry to NCCF. Excerpts:
Signed by M S Ashokan, Director(Coop) in the Ministry the letter reads
1 I am directed to say that the Department of Consumer Affairs, Govt. of India have received a series of allegations/complaints against the Chairman of NCCF. A vigilance inquiry is pending against you on the basis of CBI’s recommendations. Further, several irregular decisions purportedly taken in the unauthorized Board meeting of 21-04014 in the absence of the Chief Executive and the Government Directors to decide vigilance and other disciplinary cases of NCCF employees in a Sub-Committee of Board, invites serious objections from chief vigilance Commission (CVC) which is also seized of the matter relating to the imported coal scam.
You are also violating rules of Government and directions of CVC by stating that all vigilance cases will be decided by a Committee headed by the non-official Vice Chairman. Without the knowledge and consent of the administrative Ministry and the Chief Executive of NCCF (i.e. Managing director appointed by the Government) irregular decisions have been adopted by a Committee comprising of members to decide vigilance matters. Discriminatory decisions were taken in the meetings especially in the BOD meeting held on 21.1.2014 convened without regular agenda. These include advertisement floated for filling up the post of MD, NCCF contrary to the Service Regulation nd against the interest of the serving employees as also re-appointment of retired officials without any valid reasons; handling of distribution of wheat and Atta from the Delhi Branch Office of NCCF under the OMSS of the Govt. of India in the absence of MD/Chief Executive; sensitive decisions for import of palmolein oil without following the due process were taken in the Business Committee while also proposing/signing on MoU with TN Civil Supplies Corporation.
2. NCCF is a multi-state Cooperative Society and Government holds 78% of its shares. The Managing Director as Chief Executive represents Government’s interest in NCCF. No decision can be taken in any Board meeting where the majority share-holder (i.e. the Government’s representatives- Managing Director and other Directors) are not present. Recently Bye-laws of NCCF have been amended to formally declare the MD as the chief Executive [(NCCF Bye-law No. 36(b) (i)]
Thus, under Section 51(2) of the MSCS Act – (i) MD shall be the member of the Board. For all purpose of meetings, he will be the sole member convenor and he enjoins power for day to daymanagement of business etc. including issuing of – (a) agenda/minutes for meeting; (b) appointment letters and other administrative and commercial letters of legal importance etc. All these, prima-facie proves that the Chairman of NCCF acted and continues to act in indiscriminately in violation of various provisions and sections of the MSCS Act and bye laws of NCCF.
3. Pending a further enquiry in the matter, Government directs the chairman (NCCF) to maintain status-quo on all the decisions taken in the meetings held on 21.1.2014 and (ii) Not to convene or hold any Board meeting/Executive meeting/Business Committee meeting henceforth until Government clears these issues. This direction is issued under section 122 of the Multi-State Co-operative Societies Act (MSCA), 2002.
4. Also, you are hereby called upon to clarify your position on the above allegation/irregularities taken place in the NCCF without the approval of the Government and Government’s representatives etc. This clarification may be furnished within a week’s time promptly. You are also given opportunity for personal hearing, for which you may seek appoint with appropriate authority on submission of your clarification.
5. The issues with the approval of the Competent Authority.
Following the notice the Board led by Chairman Birendra Singh rushed to court and challenged the same. Court will hear the matter on 16th April. It is obvious the cooperative organization is in for a long drawn battle.
