The Delhi High Court directed the Comptroller and Auditor General (CAG) to probe alleged financial irregularities of Rs.900 crore in the functioning of the National Agricultural Marketing Federation of India (NAFED).
Chief Justice Dipak Misra and Justice Sanjiv Khanna directed the CAG to appraise the court whether the accounts of NAFED from 2001 onwards have been audited or not.
The court observation came while hearing a public interest litigation (PIL) filed by Vikas Jain.
The matter will be now heard May 25.
Jain’s counsel Sugriva Dubey said that NAFED had diverted around Rs.3,700 crore meant for farmers to its other businesses.
‘As per their own estimation, NAFED has to recover Rs.1,600 crore from persons who were given loans by it,’ Dubey said.
The Supreme Court had earlier set aside the high court order directing a Central Bureau of Investigation (CBI) probe into the alleged financial irregularities by NAFED officials in various activities, including the procurement of mustard seeds.
The high court had directed the investigating agency to register a case against erring NAFED officials.
NAFED has filed an interim application demanding the court vacate its stay on selling properties in posh locations across the country and said that it is reeling under a financial crisis and demanded government’s help to overcome this.