The National Agricultural Cooperative Federation of India (NAFED) has settled its debt worth ₹478 crore with eight lender banks, according to an Agriculture Ministry statement on Wednesday.
The cooperative procures oilseeds, pulses, copra and cotton for the government under a price support scheme. According to the statement, the government hopes the one-time settlement will help NAFED to undertake procurement operations more smoothly and effectively.
“The Federation had mired itself with a number of controversial businesses conducted with private parties when the borrowings made from banks were diverted to the private associates without proper collateral/securities,” said the ministry statement.
The settlement included cash payment of ₹220 crore and assignment of sale rights of one of NAFED’s prime properties at Lawrence Road in New Delhi.
