Will Amul sour Vipul's NDDB run? [DNA : Daily News & Analysis (India)]
(DNA : Daily News & Analysis (India) Via Acquire Media NewsEdge) "Ahmedabad: Within 15 months of taking charge as chairman of Gujarat Co-operative Milk Marketing Federation (GCMMF), the milk soured for Vipul Chaudhary, who is alleged to have committed irregularities to the tune of Rs1,864 crore at the Mehsana Milk Union (MMU).
On the basis of alleged irregularities, 80% directors of the GCMMF, i.e., 15 of the total 17 directors of the federation, on Thursday signed a letter of no-confidence against Chaudhary, sources close to the development said.
The Rs19,000-crore GCMMF, which markets Amul, is afraid that high debt against falling productivity may prove detrimental to Mehsana District Co-operative Milk Producers' Union Ltd. On Thursday, all directors, excluding the chairman of two district milk union co-operatives - Mehsana's Chaudhary and his friend from Anand, Ramsinh Parmar - have raised their voices and moved the no-confidence motion. Now, the federation has called a meeting of all directors on Saturday where the future course would be decided. Allegations are rife that bad administrative decisions by Chaudhary are at the root of the Mehsana dairy's ailment. GCMMF has found irregularities of more than Rs1,864 crore at the Mehsana Milk Union. Under the chairmanship of Chaudhary, Mehsana District Co-operative Milk Producers' Union Ltd has a staggering debt of Rs1,357 crore.
It is further alleged that in order to get closer to Union agriculture minister Sharad Pawar, Chaudhary has ordered the board members of GCMMF to donate cattle feed to Maharashtra, though other board members vetoed the proposal. He, nonetheless, went ahead with the decision of donating cattle feed worth Rs22.50 crore from the Mehsana union to the farmers of Maharashtra so that his interest in becoming chairman of NDDB is fulfilled.
According to a GCMMF director, only the state government can save the Mehsana milk union now. "Like in the past, the state government should interrupt and remove Chaudhary from the union. This is the only solution left for revival of the dairy. Or else, it will close down as a sick unit," he said.
The move is more political and less ethical, said Ramsinh Parmar, chairman of the Kheda milk union, who is the only one in the board who voted for Chaudhary. "Under political pressure, these people have removed Dr Verghese Kurien and BM Vyas in the past. There are no such laws in the books of co-operatives which talk of no-confidence or no-trust motion. It seems that Gandhinagar wants to rule the federation indirectly and so such things are happening," claimed Parmar.
When asked whether the alleged irregularities in Mehsana are true, Parmar said it is the Mehsana Union's issue.
"How can the GCMMF interfere in the Mehsana issue. Ethically it is incorrect," he said.
It is said that the Kheda milk union produces 16.41 lakh litres of milk every day and has a debt of Rs309.35 crore. Similarly, the Banaskantha union has a debt of Rs437.69.33 crore with productivity of 26.57 lakh litre per day, which is higher. But the Mehsana union, with a productivity of 16.35 lakh litres per day, has a debt of Rs1,357 crore.
That's not all. The most worrying factor for GCMMF is that in the past five years, productivity of the Mehsana union has fallen by 7.7% against 52% rise at the Banaskantha union, 31% rise at Kheda union and 18% at the Sabarkantha union.
Secondly, the Mehsana union expanded its capacity without taking the federation into confidence, nor was any expansion required when all its plants are running at 34% of the installed capacity. But Chaudhary's dairy still went ahead with its expansion plans incurring an investment of Rs300 crore.
It is also alleged that Chaudhary has bought a bungalow in Delhi's posh Chanakyapuri area for Rs18 crore and an office in Ahmedabad for Rs2.75 crore. Similarly, there are allegations about his spending an additional Rs164 crore unnecessarily and without intimating GCMMF.
Mehsana Dairy is on the verge of becoming a sick unit, said Mohan Bharwad, chairman of the Ahmedabad District Co-operative Milk Producers' Union Ltd. "The biggest worrying impact of these irregularities is that thousands of cattle farmers may lose their source of livelihood forever. We gave him (Chaudhary) chance to improve the situation - but sadly it only got worse. Now, we have decided to remove him from the post of GCMMF chairman to save the rest of the unions in the state," he said.
Chaudhary, on the other hand, did not answer phone calls and text messages.
(c) 2013 @ 2013 DILIGENT MEDIA CORPORATION LTD. ALL RIGHTS RESERVED
[ Back To Technology News's Homepage ]