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LATEST NEWS UPDATES | Central Vigilance Commission lens on cooperative societies

Central Vigilance Commission lens on cooperative societies

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published Published on Mar 12, 2013   modified Modified on Mar 12, 2013
-The Times of India

The government will appoint chief vigilance officers (CVOs) for 21 multi-state cooperative societies including the controversy ridden Iffco, in the wake of the Central Vigilance Commission regaining its supervisory role over them.

The reinstatement of CVC's supervisory role over the societies comes at a time when Iffco (Indian Farmers Fertiliser Cooperative) is accused of illegally transferring houses worth several crores to its managing director and joint managing director in two posh localities of Delhi.

Sources said in the wake of CVC regaining its supervisory role over these societies, it is also examining the gift of these two expensive houses to the top brass of Iffco. Several other decisions of multi-state cooperative societies could also now come under the scrutiny of CVC, sources said.

The CVC regained its supervisory role based on an opinion given by the attorney general in January. The AG had shot down the argument given by these cooperatives that since they were not receiving any aid from the central government, they shouldn't be covered under the CVC Act.

The CVC's role in overseeing decisions of these societies had ended some four years ago. The standoff between the societies and CVC boiled over when Kribhco, one of the societies, took over a urea plant of Oswal Industries. When the matter reached the high court, Kribhco questioned the supervisory role of CVC to render advice and scrutinise the deal.

The AG's opinion on the issue was the fallout of this court case.

Sources said with the department of personnel and training issuing orders to all ministries with such societies under them to take appropriate action, the ball has been set in motion to bring in CVC oversight. The first step would be to appoint CVOs in each of these societies.

Sources said CVC would also start accepting complaints, both anonymous and otherwise, against these societies and its various decisions.

Various ministries have started the process of notifying CVC oversight over societies under them. On March 1, the department of fertilizers notified that the decisions of members, office-bearers and employees of both Iffco and Kribhco would be covered under the CVC Act.


The Times of India, 11 March, 2013, http://timesofindia.indiatimes.com/india/Central-Vigilance-Commission-lens-on-cooperative-societies/articleshow/18915406.cms


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