Garhwal Post Bureau
Dehradun, 7 Jul: In major action against the alleged misappropriation of government funds and fraud under the Uttarakhand Integrated Cooperative Development Project, the Cooperation Department has initiated proceedings to register two separate criminal cases against the National Federation of Farmers Procurement, Processing and Retailing Cooperative of India Ltd (NECOF) under relevant legal provisions. The department has also begun the process of blacklisting the organisation across India and recovering the government funds.
The Uttarakhand Integrated Cooperative Development Project aims to enhance farmers’ incomes through cooperative societies and curb migration from the state’s hill regions. As part of the initiative, the Maugi Deerghakar Multipurpose Cooperative Society Ltd in Tehri Garhwal proposed a joint cooperative farming project by leasing 70 acres of unused land. NECOF was selected as the project’s handholding support agency.
Following approval of the project, the cooperative society received financial assistance of Rs 1,28,43,860, of which Rs 71,90,319 was transferred to NECOF for implementing various project activities. However, it is alleged that despite the passage of five years, the organisation neither executed the project nor returned the government funds.
As a result, the cooperative society failed to generate any income from the project, while interest liabilities on the government funds continued to increase. The Project Office and the society repeatedly requested NECOF to complete the project or refund the amount along with interest, but the organisation allegedly continued to provide only assurances. The farmers associated with the project have expressed strong resentment and demanded strict action against the organisation.
The investigation has further revealed alleged irregularities and fraudulent use of government funds under the EMCP Scheme, involving nine cooperative institutions across Uttarakhand. Under the scheme, each institution received Rs 8,42,520, taking the total amount under scrutiny to Rs 75,82,680.
The institutions involved are: MPACS Garur, Bageshwar; District Cooperative Development Union, Chamoli; Fruit and Vegetable Cooperative Purchase and Sale Society, Chakrata (Dehradun); Tanakpur Purchase and Sale Society Ltd., Champawat; Seemant Cooperative Union Ltd., Chamoli; DCDF, Dehradun; Manglaur Purchase and Sale Society, Haridwar; District Herbal and Cooperative Development Union Ltd., Tehri Garhwal; Central Consumer Store, Uttarkashi.
Considering the seriousness of the matter, the case was placed before the Secretary, Cooperation, who directed that NECOF be blacklisted at the national level, recovery of government funds be ensured, and strict legal action be initiated against those responsible under the applicable provisions of law.
In compliance with these directions, the Nodal Officer has submitted a complaint to Nehru Colony Police Station, Dehradun, seeking registration of two separate criminal cases alleging misappropriation of government funds and fraud. The police have initiated legal proceedings in the matter.
Project Director of the Uttarakhand Integrated Cooperative Development Project, Anand Shukla, said, “Action has been initiated to register criminal cases against NECOF for the alleged misuse of government funds and fraud. A proposal is also being sent to blacklist the organization across the country. Misuse of public funds and any form of fraud or negligence affecting cooperative institutions will not be tolerated under any circumstances. Strict legal action will be taken against organizations that fail to perform their responsibilities or misuse government funds in accordance with the law. The Government’s highest priority is to ensure that every project directly benefits farmers and cooperative societies, while guaranteeing transparent, accountable, and purpose-driven utilization of public funds.”
He added that the Cooperation Department is following a zero-tolerance policy towards the misuse of government funds and that stringent action against erring organisations and responsible officials will continue in every such case.
