CBI books IFFCO, Indian Potash Ltd former bosses for 'irregularities' in fertiliser import

Former Managing Director and CEO of IFFCO US Awasthi, former Managing Director of Indian Potash Ltd Parvinder Singh Gahlaut and their sons, as well as two promoters of a Dubai-based company are among 10 people against whom the CBI has registered a case on charges of irregularities in the import of fertilisers and claiming subsidies.

After registering the case, investigators conducted searches at offices and residential premises in 12 locations linked to the accused, including Delhi, Gurugram and Mumbai.

Indian Farmers Fertilizer Cooperative Ltd (IFFCO) and Indian Potash Ltd have been importing huge quantities of fertilisers running into thousands of tonnes and raw materials for fertilisers from various foreign suppliers. These fertilisers are supplied to farmers by the Centre after providing subsidy so that they get it at reasonable rates.

The CBI FIR has alleged that the accused were claiming higher subsidies from the government by importing fertilisers at inflated prices and receiving commission from the supplier through sham transactions.

According to the CBI, IFFCO and Indian Potash Ltd officials have been importing fertilisers and raw materials through Kisan International Trading FZE, a subsidiary of IFFCO in Dubai ,and other middlemen at a "highly inflated rate covering the commission meant for the accused". The commissions were allegedly given to Awasthi and Gahlaut.

The money was allegedly transferred by the overseas suppliers to the accused through "sham transactions".

Amol, promoter of Catalyst Business Associate, and Anupam, promoter of Catalyst Business Solutions, are the two sons of Awasthi who have been named in the FIR. Gahlaut's son Vivek is another person involved in the case.

Pankaj Jain, of the Dubai-based Jyoti Group of Companies and Rare Earth Group, his brother Sanjay Jain, president of Jyoti Trading Corporation and a beneficial owner of other entities of the Jyoti Group, senior vice-president of Jyoti Trading Corporation, Amrinder Dhari Singh, and chartered accountant Rajiv Saxena, who is also the promoter of Midas Metal International LLC and other companies, have been named in the FIR.

An employee of Pankaj Jain, identified as Sushil Kumar Pachisia, and unidentified directors of IFFCO also find mention in the FIR as accused.