The recently delinked NCCT is facing a major financial crisis in the wake of cases pending in the court. The co-op body has not received any fund from NCUI since April leading to a sense of despair among its staff-members.
“The second quarter has started from July even while we are yet to receive the fund for the first quarter starting from April”, said a NCCT staff member on condition of anonymity. “Salaries are coming but till when it would do so is weighing on our mind, he added.
NCCT, which spearheads co-operative training across India through its ICMs and RICMs gets fund of roughly Rs 8 to 9 crore in each quarter. There are close to 280 staff-members. The backlog of one quarter is already showing in many of its activities, said those working with the Organization.
NCCT get funds from the interest accruing from the Corpus Fund. More than 80% of the NCCT funding is met by NCUI through Corpus Fund and the remaining 20% is met by the govt grant on an average, said an insider.
Calling the Delink order of the Ministry a violation of the MSCS Act 2002, NCUI termed it an “erroneous order” and knocked on the door of the court. The matter is to come up for its second hearing on 26th July.
Besides, there are issues of RICMs and ICMs which are run by respective state co-op unions. There are several state unions who do not like the idea of being controlled by the Central govt. The Union govt also cannot have its way here as cooperative is a state subject, argued cooperators who are privy to the laws governing cooperative affairs.
Peeved as it is by the govt action NCUI has expressed its inability to give fund to NCCT citing the court case and calling it a matter subjudice . Indian Cooperative has learnt that the then Additional Secretary Upama Srivastava (who has been transferred since) wanted NCUI to release fund to NCCT. But NCUI stuck to its guns.
Indian Cooperative has also learnt that, as a tit for tat measure even the Ministry stopped grant to NCUI for its field projects and related expenditures. While NCUI gets Rs 6 crore from the Ministry, it releases close to Rs 28 crore annually to NCCT.
Though NCUI is also suffering but it has many other ways of overcoming its financial crunch, said an insider. It gets rent from several tenants who operate from its prime property on August Kranti Marg in Delhi, they added.
The real issue is not the fund but the weakening of the co-operative movement in the fight between the government and the apex co-operative body in the country, opined many cooperators.
