Kribhco Managing Director B D Sinha has not long time ago declared rather proudly through the pages of Indian Cooperative that Kribhco needs no subsidy from government. But the board of Kribhco which was presided over by its Chairman Bagchi Bhai Patel on 27th July decided to retain government equity. Talking to Indian cooperative .com Bagchi Bhai said that the board has unanimously decided to retain govt share and we do need govt support for our activities.
Earlier, in the high court Kribhco won a legal battle wherein it could return share to government. But it developed cold feet soon. According to multi state society act 2002, a multi society cooperative is free to return share to the govt. But the Kribhco board has decided to keep 26 percent share of the government. It has presently about 49 per cent of government equity.
The government has also decided not to challenge court decision as it has concluded that getting share back from Kribhco is not a profitable idea. The cheque given to government has been sent for revalidation.
In a similar move Iffco, another cooperative giant has returned government share to the tune of 69.10 percent between April 2002 to June 2004. Government share in Kribhco was 67 percent in 2000-1. Gradually it has come down to about 49 per cent. Now the board has decided to keep it at 26 percent though the govt wanted to peg it at 35 percent.
The volte face by Kribhco in the backdrop of High Court decision is understandable.As Baghch Bhai says keeping government on right side is always a good idea. It has also decided to keep to government nominees on its board. The cooperative movement in Kribhco is yet to come off age.
