Ahmedabad, 31 January 2014

Dudhsagar dairy Chairman Vipul Chaudhary today failed to get any relief from the Gujarat High Court. Gujarat government’s cooperative department has initiated probe after allegations of corruption in Mehsana district dairy union. Chaudhary wanted court to stay the probe. Chaudhary also wanted court to quash FIR against him in this connection. However the High Court denied any relief to him.

It should be mentioned here that Accountant General Manager (AGM) and Managing Director of Dudhsagar Dairy both are arrested by Local Crime Branch of Mehsana district police in connection with alleged scam. Chaudhary and others have filed anticipatory bail plea to evade their arrests.

Background

Farmers associated with Mehsana Dairy, headed by Chaudhary, had approached the Gujarat high court with allegations of corruption in the district dairy union. The high court directed the state government to inquire into the allegations of corruption against Chaudhary and other board members in Mehsana Union while hearing public interest litigation (PIL) filed by Baldev Chaudhry and Mangal Patel, milk producers who are members of Mehsana’s Dudhsagar Dairy. In November last year, a division bench of Chief Justice Bhaskar Bhattacharya and Justice J B Pardiwala directed the state government to inquire into the allegations made in the PIL and submit report before them within three weeks.

In their PIL, the petitioners had alleged that there has been large-scale corruption at various levels by Chaudhary and his close aides.

The petitioners had alleged that misappropriation in production of cattle feed by Mehsana Union resulted in loss of Rs 200 crore to the union. They further claimed that Mehsana union was charging more for cattle feed from members.

The petition stated that Chaudhary declared donation of 22,500 metric tonnes of cattle feed from GCMMF to the drought-affected areas of Maharashtra. At that relevant point of time there was drought in Gujarat also, but for getting political mileage, Chaudhary donated Rs 22.5 crore worth of cattle feed to Maharashtra, without approval of the board of directors of the federation. Also, in financial year 2012-13, Mehsana union sold 7,000 metric tonnes of milk powder directly at the rate of Rs 162-164 per kilogram while the same powder was sold by GCMMF at Rs 205-210 per kilogram, the petitioners said in the PIL.It had also been alleged that Chaudhary was not acting as per the bye-laws of the union in appointment of officials. As per the bye-laws of Mehsana union, there is no post of vice-chairman but one Jalaben Desai has been appointed to the post and has been given two cars that are actually utilized by her husband, who regularly attends dairy’s office.

Chaudhary was removed from the post of Chairman of GCMMF following the allegations.