JAKFED formally wound up

SRINAGAR: The State government on Wednesday ordered winding up of ailing Jammu and Kashmir Cooperative Supply and Marketing Federation (JAKFED) Limited after thirty years of operation.
The Registrar, Cooperative Societies, J&K issued an order for winding up the federation.
"In exercise of power vested under sub-section (1) of section 47 of the Jammu and Kashmir Cooperative Societies Act, 1989, sanction is hereby accorded to the winding up of JAKFED registered under the provisions of Jammu and Kashmir Cooperative Societies, 1989," the order from the Registrar said.
JAKFED was a profit earning organization, however, it could not sustain the same on account of malpractices which were probed by a High Level Committee (Pillai Committee) and, thereafter, by the Joint House Committee of Legislative Council.
The Federation is suffering annual recurring loss of around Rs 2.75 Crore and has overall liabilities to the tune of Rs 67 Crore.
The government had in 2017 constituted a managing committee to look into the affairs of ailing JAKFED, which recommended its winding up.
“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,” a government spokesman had said earlier this year when the State Administrative Council had decided to wind up the organisation.
The service benefits of over 200 employees of JAKFED would be protected despite the state government's decision to wind up the loss-making Federation.
The government has worked out a voluntary retirement scheme (VRS) for nearly 224 employees of JAKFED, whose livelihoods would otherwise be adversely affected by the decision.