The SAC today 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 beconcluded by the Registrar, Cooperative Societies, J&K in terms of Section74 of the Jammu and Kashmir Cooperative Society Act, 1989 by 31.08.2019.
SAC directed the Cooperative Department to constitute a Committeewhich will coordinate the winding up of JAKFED. The Cooperative Department,under the guidance of the Committee will come up with a detailed winding upplan, including an appropriate VRS for employees of the Federation by31.07.2019.
All the movable/immovable assets of JAKFED shall be takenover by the State Government and financial commitments, if any, shall be met bythe Cooperative department through sale of these assets and the StateGovernment shall not bear any financial liability whatsoever on this account.
It is noteworthy to mention that JAKFED, registered underthe Jammu and Kashmir Cooperative Societies Act, 1989, is an apex levelinstitution in the Cooperative Sector. The major activities of the federationincluded procurement and distribution of Fertilizer, building material,domestic gas etc.
JAKFED, initially a profit earning organization could notmaintain its tempo on account of malpractices which were probed by a High LevelCommittee (Pillai Committee) and, thereafter, by the Joint House Committee ofLegislative Council.
It was observed that Federation has strength of 224employees. The Federation is suffering annual recurring loss of around Rs 2.75Crore and has overall liabilities to the tune of Rs 67 Crore.After careful analyses of all the pros and consand in view of the very limited scope for revival, decision to wind up JAKFEDhas been taken, a government spokesman said.