NAFED siphoned off farmers' fund

CNN-IBN Special Investigation Team exposes how NAFED diverted Rs 3,600 crore of taxpayers' money to import petroleum products and minerals. They also take a look at how deep-rooted corruption is in the Government-owned cooperative.

In Lok Sabha the question on the diversion Rs of 3,600 crore was raised in July 2004.
Agriculture Minister of State Kanti Lal Bhuria had categorically denied any such corruption within the NAFED then.

But the CNN-IBN has evidence that proves that Agriculture Minister of State Kanti Lal Bhuria was not correct.

This Memorandum Of Understanding between NAFED and Earthtech enterprises is specifically about the import of petroleum products.

When CNN-IBN tried to find out why NAFED gave loans to private companies, the trail led straight to the offices of Whitewood Pvt Ltd in South Delhi.
Whitewood Pvt Ltd is owned by Manish Aggarwal, son of O P Aggarwal. Incidentally O P Aggarwal owns Earthtech, the company that secured loans from NAFED to import petroleum products.

His employees argued that they work for M K International and not for Whitewood or Earthtech. After that they attacked the CNN-IBN team.

But our team finally persuaded Manish to give his version.

CNN-IBN: You own Whitewood Pvt Ltd?

Manish Aggarwal: Absolutely.

CNN-IBN: People are saying Whitewood is owned by your father O P Aggarwal.

Manish Aggarwal: No it's my company. Nothing has been issued to me from anywhere.

CNN-IBN: There are stories that your father has been involved in some of the issues of NAFED and his companies have been blacklisted. Are you in any way linked in any financial issues with your father?

Manish Aggarwal: Well, he is my father and I am his son. But as far as business and finances go, we are not related at all.

However, this photocopy of a bounced cheque worth Rs 82 lakhs is a giveaway. Despite disowning his father this signature shows that Manish is an authorized signatory of Earthtech.
Moreover, CNN-IBN Special Investigation Team discovered that the Additional Managing Director of NAFED, Homi Rajvansh, who has signed several dubious deals with private firms, drives a sleek Ford Endeavour (DL 3C AJ 3567), which is registered in the name of Whitewood Private Limited.

Rs 3,600 crore — this huge sum of the taxpayers’ money is the size of corruption within NAFED.