JAKFED to be wound up next month
Srinagar: The State Administrative Council (SAC) which met under the chairmanship of Governor, Satya Pal Malik accorded sanction to the winding up of Jammu and Kashmir Cooperative Supply and Marketing Federation (JAKFED) by August 2019.
The process of winding up of the Federation will be concluded by the Registrar, Cooperative Societies, J&K in terms of Section 74 of the Jammu and Kashmir Cooperative Society Act, 1989 by 31.08.2019.
SAC directed the Cooperative Department to constitute a Committee which will coordinate the winding up of JAKFED. The Cooperative Department, under the guidance of the Committee will come up with a detailed winding up plan, including an appropriate VRS for employees of the Federation by 31.07.2019.
All the movable/immovable assets of JAKFED shall be taken over by the State Government and financial commitments, if any, shall be met by the Cooperative department through sale of these assets and the State Government shall not bear any financial liability whatsoever on this account.
It is noteworthy to mention that JAKFED, registered under the Jammu and Kashmir Cooperative Societies Act, 1989, is an apex level institution in the Cooperative Sector. The major activities of the federation included procurement and distribution of Fertilizer, building material, domestic gas etc.
JAKFED, initially a profit earning organization could not maintain its tempo on account of malpractices which were probed by a High Level Committee (Pillai Committee) and, thereafter, by the Joint House Committee of Legislative Council.
It was observed that Federation has strength of 224 employees. The Federation is suffering annual recurring loss of around Rs 2.75 Crore and has overall liabilities to the tune of Rs 67 Crore.
After careful analyses of all the pros and cons and in view of the very limited scope for revival, decision to wind up JAKFED has been taken.
by INS Desk