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Probe ordered

Staff Reporter

NEW DELHI: The Centre has ordered a CBI inquiry into extension of bank guarantees and grant of loans to "blacklisted" companies and individuals to conduct export-import business allegedly by the National Agricultural Cooperative Marketing Federation of India Ltd (NAFEDIL).

In reply to a public interest litigation levelling the charges against NAFEDIL, Under Secretary in the Union Agriculture Ministry D.B. Singh told the Delhi High Court earlier this week that the Department of Agriculture and Cooperative was extremely concerned over the gravity of the allegations levelled against NAFEDIL and had already initiated action in the matter by formally requesting CBI to inquire into the allegations.

Mr. Singh told the High Court that the Department had also requested the Comptroller and Auditor General to conduct audit of Price Support Scheme operations undertaken by NAFEDIL for 2005-2006.

"It is submitted that the Department is willing to facilitate and cooperate in any inquiry into all the allegations made in the petition," Mr. Singh said in an affidavit.

The petitioner, social activist Vikas Jain, through his counsel Sugriv Dubey alleged that NAFEDIL had given bank guarantees or extended loans to these firms and individuals without any collateral, moveable or immovable. The petitioner stated that NAFEDIL could not take a loan worth more than ten times its capital but it had stood guarantees for loans which were more than 15 times its capital.NAFEDIL also took loans from private and public sector banks and disbursed them to firms and individuals blacklisted by different banks, the petition alleged.

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