There is no fund for the national Federation of Labour cooperatives as its staffs go without salaries for months together. But one of its members from Uttar Pradesh, LACCFED became a multi-crore company in no time.
The Labour and Construction Cooperation Federation (LACCFED) involved in a multi-crore scam is under police investigation now.
There are serious allegations being levelled against the functionaries of the federation and several projects involving hundreds of crores of rupees are being enquired into by the police. All the allegations date back to the period when Mayawati was in power.
Talking to Indian Cooperative, the Managing Director of National Federation of Labour and Construction Cooperative Mr R M Pandey said t “though LACCFED is our member, we have no link to its business deals”.
The police investigation is mainly focused on finding out if the office of the federation operated from the premises owned by a political party or agency officials forged the papers for the purpose.
Initially, the federation was a minuscule entity handling a couple of lakhs but later the BSP govt. suddenly entrusted it with construction projects involving hundreds of crores of rupees. The sudden transformation of the federation arouses suspicion, police say.
While one of the accused a former GM of the federation was recently arrested but was soon let off on bail, some of the accused are still evading arrest.
Sources say some political heavyweights are involved in the scam and police investigations are indicating in the direction.
BSP, however, has expressed its vehement anger at the insinuation that it has anything to do with the scam.