Signs of internal unrest have surfaced at the country’s second-largest fertilizer cooperative, KRIBHCO, following the repeated cancellation of a scheduled Board meeting. The crucial meeting slated for March 31 has once again been called off, indicating that the organisation may be passing through one of its most challenging phases.
Reliable sources confirm that the Ministry has advised the management not to hold the meeting. The development is significant, as the Board is mandated to meet at least once every quarter.
Under the Multi-State Cooperative Societies Act, 2002 (amended in 2022), Section 50 stipulates that the Chief Executive must convene Board meetings at the instance of the Chairperson or upon requisition by a majority of Board members, with at least one meeting every quarter. Further, Section 45 empowers the Central Registrar to supersede a Board in cases of persistent default, negligence, or actions prejudicial to the interests of the society or its members.
It is pertinent to note that the newly elected Board has met only once since the elections of the Chairman and Vice Chairman, during which the issue of appointing a new Managing Director (MD) emerged. S.S. Yadav was eventually appointed after prolonged deliberations within the Board.
Earlier, the MD had attempted to convene a Board meeting about six weeks ago, but it is learnt that the office of the Central Registrar of Cooperative Societies (CRCS) intervened and directed its cancellation. That meeting had been scheduled within the stipulated timeframe. However, the latest cancellation means the Board has now failed to meet within the mandated three-month period, leaving the interpretation of the situation contingent upon the CRCS’s stance.
The ramifications could be significant. If the situation is interpreted as a statutory default, it could potentially lead to the dissolution of the Board. This would necessitate fresh elections, an exercise completed only last year when 11 Board members were elected unopposed. Such a development would not only entail financial costs but could also impede KRIBHCO’s growth trajectory, given its stature in India’s cooperative sector.
Sources indicate that the crisis stems from a rift between Chairman Sudhakar Chaudhary and a majority of the Directors. Many Directors are reportedly opposed to Chaudhary, with some alleging that his elevation was influenced by connections in higher corridors of power.
Further, both factions have lodged complaints against each other with the Ministry. While Chaudhary has named former Chairman Chandra Pal Singh Yadav in his submissions, the latter has raised allegations of irregularities involving companies linked to Chaudhary. The Ministry is currently examining both sets of complaints.
It is also learnt that the CRCS office has formally advised postponement of the Board meeting pending the outcome of the inquiry into these allegations.
Although no official statement has been issued by KRIBHCO or the CRCS, the ongoing developments point to a phase of instability within the cooperative, raising concerns over governance and decision-making at a critical juncture for the fertilizer sector.