The Central Bureau of Investigation (CBI) has registered a case against the Managing Director and CEO, of Indian Farmers Fertilizer Co-operative Ltd (IFFCO) and MD of Indian Potash Ltd. (IPL) on the charges of importing fertilizers and raw materials at highly inflated rates to claim higher subsidy from the government.
The CBI has been conducting also searches at the office and residential premises of the accused in 12 locations including Delhi, Gurgaon, Mumbai etc.
According to a case registered by the CBI on complaints of the Ministry of Chemical and Fertilizer,
U S Awasthi, MD & CEO, Indian Farmers Fertilizer Co-operative Ltd and Pravinder Singh Gahlaut, MD, Indian Potash Ltd colluded with a handful of private companies and their promoters to import fertilizers and raw materials through Kisan International Trading FZE in Dubai (a subsidiary of IFFCO) and other middlemen at highly inflated rates covering the commission meant for Awasthi and Gehlot.
The commission was then paid to these officials through sham transactions involving overseas suppliers.
IFFCO and Indian Potash Limited have been importing huge quantities of fertilizers running into several thousands of tones and raw materials for fertilizers from various foreign suppliers. The government offer fertilizers to farmers at a subsidized rate.
Other accused named in the FIR include Vivek Gahlaut, son of Pravinder Singh Gahlaut, Pankaj Jain of Jyoti Group of Companies and Rare Earth Group, Dubai, and Sanjay Jain, brother of Pankaj Jain, president of Jyoti Trading Corporation and beneficial owner of other entities of Jyoti Group, etc.
