IFB Agro Industries Approves Contributions to Political Parties in form of Electoral Bonds Subscription

IFB Agro Industries' board of directors has decided to approve contributions to political parties in the form of subscriptions to their electoral bonds totalling no more than Rs 40 crore for FY23. The bonds would be subscribed to in one or more tranches.

In fact, this is not the first time the company's board of directors has approved subscriptions to such electoral bonds. Citing the same issue, the company decided in October last year to approve contributions to political parties via subscription to electoral bonds in one or more tranches totalling not more than 25 crores for FY22. It did not, however, mention the name of the party.

In a recent filing to stock exchanges, the company mentioned earlier letters to stock exchanges in which it informed about excise-related issues confronting 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 decided, in the best interests of the company and all its stakeholders, to approve contributions to political parties by way of subscription to electoral bonds in one or more tranches totaling not more than 40 crore for the fiscal year 2022-23," the company said.

IFB Agro, which had a turnover of 1,693 crore in FY21, had previously informed the exchanges about an attack on its distillery in Noorpur, South 24 Parganas, West Bengal, in June 2020 by a group of more than 150 armed goons, which resulted in the distillery's "forced closure."

The necessary complaint was filed with the local police station, and operations at the distillery resumed on July 2, 2020, after local authorities provided police protection.

IFB Agro requests that the Kolkata government investigate the 'attack' on its Noorpur liquor unit. However, in a subsequent filing in December 2020, the company stated that "to date, no offenders have been brought to book."

"Furthermore, the company's alcohol business has been suffering and is under threat, as we have been singled out by certain excise officials for refusing to comply with their illegal demands; we have requested the Chief Minister of West Bengal and also the Finance, Commerce and Industry Minister of the State of West Bengal to look into/investigate the same," it said in its filing.