Delhi based National Federation of Farmers’ Procurement, Processing and Retailing Cooperative of India (NACOF) is currently involved in a legal wrangle because the cooperative lender NCDC has filed a case against it with the Central Registrar on the issue of default on its loan repayment.
The office of the Central Registrar has directed the Chairman of NACOF to be present on the next date of hearing (which is today 18.03.2020) along with their Chief Executive to submit a credible plan for repayment to NCDC. “Yes I am going to meet them today and would brief you once the meeting is over”, said Nacof Chairman Ram Iqbal Singh, who was earlier Chairman of NCCF also. Sweet tongued Iqbal is a familiar face in Delhi cooperative circuit.
The matter is related to non-repayment of loans given by NCDC to NACOF for procurement of cereals in the state of Jharkhand. It is reported that several hearings have taken place in the matter before the central registrar and the next hearing is due today on 18th March 2020. However, the NACOF management is seeking more time for the repayment.
NACOF Additional MD R K Ohja and GM (Admin) V.K. Kohli, who were present during the hearing stonewalled queries raised by Indian Cooperative.
Meanwhile, talking to Indian Cooperative NACOF Chairman Ram Iqbal Singh said, “Nacof has taken a loan of Rs 100 crore from NCDC two years back for the procurement work in Jharkhand. “We have already paid Rs 96 crore to NCDC. We seek more time for clearing the outstanding dues”, he informed sounding more forthright than his top officers.
It bears recall that NACOF has been fighting court cases against the Jharkhand govt and according to its Chairman, the court judgement has been in its favour. A partial payment for the paddy procured by Nacof has also been released by the state govt. “We have received Rs 20 crore so far for the paddy procurement entrusted to us”, Chairman Ram Iqbal said. “We are sure to get the rest of the money sooner than later and would repay every pai of NCDC loan”, he sounded confident.
Ram Iqbal admitted receiving a letter from the Central Registrar wherein NACOF has been asked to present a credible plan for repayment within three months of the entire amount due to NCDC”.
The last hearing on the matter was held on 24 February 2020. And the next hearing is scheduled for today.
The order sheet released on 21st January 2020 by the Central Registrar office reads, “In the last hearing both the parties (Nacof and NCDC) were heard and this authority had given direction that an amount of Rs 2.00 crore be paid as an initial amount to NCDC so that their intention for repayment is established. NACOF was also directed to present a credible plan for repayment within three months of the entire amount due to NCDC”, read the order.
Additional MD, NACOF has submitted that an amount of Rs 2 crore has been paid to NCDC as directed by this authority. Additional MD also submitted that due payment of agencies from Jharkhand state is still pending in spite of regular follow up. The officer requested that Nacof be given time at least up to 30th June 2020 for the repayment.
The letter from the Central Registrar reads, “The authority has considered the good intention of NACOF for repayment which has been established by payment of Rs 2 Crore to NCDC. However, without a credible plan of repayment, request for an open timeframe cannot be agreed. It is directed that on the next date of hearing Chairman, NACOF along with their Chief Executive shall remain present and submit a credible plan for repayment to NCDC”.