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IFB Agro Industries approves contributions to political parties by way of subscription to electoral bonds

BL Kolkata Bureau | Updated on: Apr 04, 2022

Board approves contributions aggregating not more than ₹40 crore for FY23; says in filing that decision was taken “in the best interest of the company and all its stakeholders”

The board of directors of IFB Agro Industries has decided to approve contributions to political parties by way of subscription to their electoral bonds for an amount aggregating not more than ₹40 crore for FY23. The subscription to the bonds would be made in one or more tranches.

Incidentally, this is not the first time that the company’s board has approved subscription to such electoral bonds. The company had, in October last year, decided to approve contributions to political parties by way of subscription to electoral bonds in one or more tranches aggregating not more than ₹25 crore for FY22, citing the same issue. It, however, did not mention the name of the party.

In a filing to stock exchanges recently, the company mentioned its earlier letters to stock exchanges wherein it had intimated about excise related issues being faced by and affecting the company.

“We write in continuation to our earlier letters to the stock exchanges; the board of directors, in its meeting dated March 31, 2022, considered such issues and in the best interest of the company and all its stakeholders decided to approve contributions to political parties by way of subscription to electoral bonds in one or more tranches aggregating not more than ₹40 crore for the financial year 2022-23,” the company said.

Distillery attack

IFB Agro, which clocked a turnover of ₹1,693 crore in FY21, had earlier informed the exchanges about an attack on its distillery situated in Noorpur, South 24 Parganas, West Bengal, in June 2020 by a group of more than 150 armed goons, resulting in “forced closure” of the distillery. The necessary complaint was made to the local police station and operations at the distillery resumed on July 2, 2020, after police protection was provided by local authorities.

However, in a subsequent filing in December 2020, the company said “till date no offenders have been brought to book”.

“Further the alcohol business of the company has been suffering and is under threat, as we have been singled out by certain excise officials for not succumbing to their illegal demands; have requested the Hon’ble Chief Minister of West Bengal and also from Hon’ble Finance, Commerce and Industry Minister of the State of West Bengal to look into/investigate the same,” it said in its filing.

Published on April 04, 2022
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