The Kerala government has dissolved the Malabar Regional Co-operative Milk Producers’ Union, a regional body under the Kerala Co-operative Milk Marketing Federation (Milma), citing alleged financial and operational irregularities. The union’s chairman, KS Mani, said the decision was politically motivated and announced that it would be challenged in court.
The Dairy Development director issued the dissolution order on Friday, after which the deputy director of Dairy Development in Wayanad assumed charge as administrator of the union. Animal Husbandry Minister Bindhu Krishna said the decision followed complaints and prima facie findings involving the union’s functioning.
Krishna cited alleged graft involving lakhs of rupees in milk procurement, the purchase of low-quality milk and malpractices connected with various programmes. She said a detailed departmental inquiry would follow and denied that the action was politically driven.
“Numerous irregularities were found, such as graft involving lakhs of rupees in milk procurement, the purchase of low-quality milk and malpractices related to various programmes,” Krishna said. She added that the Dairy Development Department’s objective was to ensure the survival and smooth functioning of Milma.
Mani disputed the government’s justification and alleged that the mandatory procedure under Section 32 of the Kerala Co-operative Societies Act had not been followed. He said the union’s objections should have been sought before the action was taken, invoking the principle of natural justice.
“Natural justice is a right guaranteed by our Constitution. Before taking any action against anyone, their objections have to be sought. That procedure was not followed in this case,” Mani said.
He also denied allegations of corruption and said the union had cooperated with inquiries ordered by the authorities. Regarding allegations involving the Malabar Rural Development Foundation, Mani said it was an independent cooperative institution that had operated for nearly 25 years and whose accounts were audited annually by a chartered accountant.
Mani alleged that the dissolution was carried out hastily ahead of a general body meeting scheduled for September 23, where the audited report was expected to be placed before members. He further claimed that the government was attempting to gain control of Milma’s three regional unions and the federation through dissolution orders.
The dispute also involves an alleged theft of ghee worth around Rs 85 lakh from the Malappuram Dairy. Mani said the irregularity was detected during a stock verification by Milma officials, after which a police case was registered. He said the entire amount had been recovered and that the union had suffered no loss.
The Malabar decision follows the dissolution of the Thiruvananthapuram regional union by the government in July. That action is being challenged before a division bench of the Kerala High Court. The Ernakulam regional union currently has a United Democratic Front-led panel, while the Thiruvananthapuram union had been led by a Left Democratic Front panel.
Mani said the Malabar union would legally challenge the government’s order and establish its position before the court. Krishna said the departmental inquiry and further action would proceed according to the department’s legal procedures.
