Fertilizer cooperative IFFCO has refunded Rs 2 crore to the govt as the CBI registered a case against one of its officials for alleged diversion of urea, reports PTI. The urea subsidized by the govt was meant for farmers in Kerala, the report adds.
Meanwhile IFFCO has suspended the concerned official and ordered an inquiry against him.
The fetiliser cooperative, however, says in a letter addressed to the govt the assumed loss of subsidy as per computations made by the Investigating Officer works out to Rs 1.98 crore only.
“In order to avoid any interest burden in the event of any subsidy being held to be refundable, IFFCO has decided to refund an amount of Rs 1.98 crore, being the loss alleged to have been occurred on account of diversion of IFFCO Urea/NP,” PTI quotes the IFFCO letter claiming.
The government has fixed the maximum retail price of urea at Rs 5,360 per tonne. The difference between the MRP and the cost of production is reimbursed to manufacturers by the government in form of subsidy.