The biggest fertiliser plant deal in India has started raising a stink. The sale of Oswal group?s fertiliser plant at Paradip in Orissa to Indian Farmers’ Co-operative Ltd (Iffco) for Rs 2,162.89 crore has cast a shadow on the role of both the companies as well as the Orissa government. Suppression of facts by the two companies and the ?dubious? role of the Orissa government, which cost the state exchequer Rs 280.80 crore, came to light after the fraud was detected by the Accountant General of Orissa.

Though the deal attracted stamp duty and registration fee totaling Rs 281.17 crore, the state government levied a paltry Rs 37.52 lakh for the purpose, the report said. Even though the state government claimed that the short levy was due to non-availability of complete information from the two companies involved, the involvement of some government officials cannot be ruled out, say sources.

Oswal Chemicals & Fertilisers Ltd (OCFL) entered into an agreement with Iffco in 2005 for sale of its DAP (di-ammonia phosphate) plant at Paradip for a consideration money of Rs 2,162.89 crore. Accordingly, a tripartite lease deed was signed between the Industrial Infrastructure Development Corporation (IDCO), OCFL and Iffco in June 26, 2006. As per the deed, IDCO permitted transfer of leasehold right from OCFL to Iffco in respect of 1,000 acre at Paradip on payment of Rs 3 crore as fee.

OCFL presented the lease deed and another document titled ??special power of attorney?? before the sub-registrar?s office. The office levied Rs 37.52 lakh as stamp duty and registration fee on the Rs 3-crore transfer fee. However, it ?blissfully? forgot to levy the stamp duty and registration fee on the consideration money involved in the transaction, say sources. Interestingly, in the power of attorney document, OFCL showed that the purchase consideration money as stipulated in the sale agreement for the sale and transfer of the DAP complex, including immovable properties, had already been paid by Iffco and physical possession handed over to them in October 2005.

??The levy had reportedly been calculated on the basis of two documents presented by Oswals??, said a senior revenue official. Since, there was no mention of the consideration money, the stamp and registration fee could not be levied, he added.

Following detection of the fraud by the Comptroller and Auditor General, Iffco has paid Rs 88.81 crore towards stamp duty and registration.