Trouble for the AEPC plagued with charges of corruption and maladministration has been brewing for long since CAG submitted its inspection report. The latest controversy in a never-ending list is regarding the appointment of the current Chairman of AEPC, Ashok G. Rajani, due to selective relaxation granted to AEPC by Ministry of Commerce (MoC) to subvert its own guidelines, ironically issued to all Export Promotion Councils (EPCs) through FTP – 2015-2020 for ensuring transparency, democracy and good governance.
The AHEA (Apparel House Exporters Association) has expressed serious objections regarding his appointment as a ‘selective’ dilution of the rule on the implementation of Para 2.92 of the handbook of procedures of FTP (Foreign Trade Policy) to favour a particular group during the election of the Chairman of AEPC, through the route of election of Vice Chairman. AHEA representatives met top officials of Ministry of Textiles (MoT) and DGFT in this regard, who agreed in principle about the violation and were of the view that action required, if any, has to be taken by the Department of Commerce. AHEA’s delegation has sought time and is soon to approach the Ministry of Commerce & Industry to seek action on violation of FTP guidelines by AEPC by either quashing the election of the Chairman AEPC or to compel AEPC to be compliant of FTP on or before 1.4.2016.
The AHEA claims that Senior Vice Chairman, AEPC Ashok G. Rajani’s tenure as one of the three Vice Chairmen expired in December 2015, but since it was necessary to elect the Vice Chairman through the general electorate in an electronic voting system, who could take charge as Chairman of AEPC after the term of the then Chairman gets over, a novel way was evolved by the powerful coterie ruling AEPC for over 3 decades. They further claim that Rajani technically resigned and promptly filed his nomination to contest the election of the Vice Chairman, with none else in the fray as part of the understanding and the design of the ruling coterie. Accordingly, Ashok G. Rajani was re-instated as Vice Chairman even after the handbook of procedure for the period 2015-2020 was put in place on 7th December 2015, wherein Shri N. Ramakrishnan, Deputy Secretary, Ministry of Commerce & Industry issued a letter to all EPCs regarding implementation of Para 2.92…… where inter-alia, amongst other issues, it is conveyed that any member having held the post of Chairman or Vice Chairman in any case comes back as Vice Chairman in the same Council only after a gap of four years. But this provision was diluted immediately after issue of these guidelines by the same Deputy Secretary of Ministry of Commerce within a week based on a request sent by the then AEPC Chairman Virender Uppal.
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AHEA expressed their disappointment and utter disbelief at the turn of events informing Apparel Online, “This is a blatant violation of FTP guidelines, why has such relaxation been permitted to the AEPC alone in surreptitious manner just before the elections to the Vice Chairman and that too merely after a week of issuing the general guidelines to all EPCs. It is a setback to the efforts to bring transparency and good corporate governance in AEPC.”
In a reply received by AHEA’s Chairman, it has been gathered that on 11th December, 2015, Virender Uppal, the then Chairman of AEPC, sought a clarification whether an Executive Committee member, who has been elected as Vice Chairman in the year 2013, 2014, and 2015 without e-voting process, is eligible for offering himself for the post of Vice Chairman through e-voting.
In reply to this clarification sought, Ministry of Commerce & Industry very swiftly replied by diluting its general guidelines issued on 7th December 2015 that there is no bar for members, who have held the post of Vice Chairman in the past to contest for the post of Vice Chairman in 2015-16 under the Para 2.92 of the handbook of procedure of FTP 2015-2020. However, this provision would come into play for all prospective elections after the current one by e-voting.
Even the Undersecretary to the Ministry of Textiles, who was appointed as ‘Observer’ for the said elections to Vice Chairman of AEPC, neither raised the issue nor mentioned about this violation in his report.
AHEA objects to the fact that the details regarding the retirement of the Vice Chairman and reinstating him again was not even disclosed to the Ministry in Virender Uppal’s letter which is blatantly wrong. They claim that being a major violation in case of election of the present Chairman of AEPC, who was Vice Chairman just before being elected as the Chairman without adhering to the preambles of Para 2.91 of handbook of procedures, makes the entire process a mockery of the guidelines issued by the Ministry of Commerce for transparency and good governance.
Either the Ministry of Commerce should not have issued the directives in FTP 2015-2020 followed by further guidelines dated 7th December 2015, or should not have granted such flexibility selectively in its own FTP provisions meant for all EPC’s to AEPC alone. “Shockingly, this relaxation was surreptitiously conveyed only to AEPC and destroys the confidence of small and medium exporters fighting for true democracy, transparency, participation and good governance in AEPC,” said Rajiv Kapoor who lost the election to the executive council of AEPC in December 2015. Rajiv has already challenged the election of executive council held in December 2015 before the Delhi High Court and is confident about the outcome.
It is alleged that the AEPC is under the control of the present Management through a rotational system of its coterie for appointment of its Chairman. The council has already been charged by CAG of indulging in host of illegal activities and financial impropriety on which there has been very slow action by the Government agencies. Even ATDC under the same Management has faced charges of bungling ISDS funds as per the enquiry report of the Ministry of Textiles. In such times, this relaxation facilitating the election of one of the same coterie’s Member is certainly a shocker and raises many eyebrows.
AHEA demanded that MoT and MoC must intervene and ensure that FTP guidelines are adhered to in letter and spirit without any favour by issuing a show cause notice to the AEPC as to why its RCMC (Registration-cum-Membership Certificate) should not be cancelled after 1.4.2016 being the date on which AEPC need to be compliant of the guidelines unless AEPC elects its next Vice Chairman and Chairman in a fresh elections de novo before 1.4.2016.
Rajiv said he will not rest till small and medium exporters get their due share and recognition in AEPC. He further said he will keep his fight against the corruption and arbitrary attitude of AEPC towards small and medium exporters till he succeeds.
