Srinagar, June 21 (IANS) Service benefits of over 200 employees of the Jammu and Kashmir Cooperative Supply and Marketing Federation (JAKFED) would be protected despite the state government's decision to wind up the loss-making Federation by the end of August.
The State Administrative Council meeting chaired by Governor Satya Pal Malik yesterday accorded sanction to the winding up of the Federation by August 31. JAKFED's cumulative losses stand at over Rs 67 crore.
Official sources said that the state government was working on a voluntary retirement scheme (VRS) for nearly 224 employees of JAKFED, whose livelihoods would otherwise be adversely affected by the decision.
"Service benefits of the employees of JAKFED would be protected," official sources said here.
The state government has authorised Registrar Cooperative Societies, J&K to conclude the closure of JAKFED under Section 74 of the Jammu and Kashmir Cooperative Society Act, 1989 by August 31.
All movable/immovable assets and financial commitments will be taken over by the state government.
It has also been decided that any pending financial commitments of JAKFED would be met by the sale of its assets.
JAKFED's major activities, included procurement and distribution of fertilisers, building material, LPG gas supply etc.
The Federation initially made profits, but plunged into losses after a few years due to malpractices by its management.