Coop Dept corrupt, alleges Bains - Says Ludhiana plant supplied synthetic milk; Milkfed MD refutes charge

Saturday, 12/07/2014

http://www.tribuneindia.com/2014/20140712/punjab.htm#12

Chandigarh : The independent MLA from Atamnagar (Ludhiana), Simarjit Singh Bains, today took on the Chief Minister Parkash Singh Badal, accusing him of ignoring corruption in the Cooperatives Department. Bringing to light “irregularities” in the functioning of Milkfed, the MLA alleged that synthetic milk was being supplied to the milk plant at Ludhiana, which “amounted to cheating the consumers”.

Demanding a CBI inquiry into the supply of “synthetic milk” by a supplier in Churu (Rajasthan), the MLA alleged that 8.60 lakh litres of milk was supplied to the Ludhiana milk plant even though the plant had no authorisation to buy the milk from the supplier, Ganesh Sewa Samiti.

“The supplier was contracted to supply milk for 15 days, from April 1 to April 15, 2011. But against rules, the supply continued the entire year. Churu does not have a large concentration of dairy farms to supply such huge quantities of milk. This shows that the milk coming from the Ganesh Sewa Samiti was synthetic milk.”

Producing documents, including audit reports and a special report pointing to “irregularities” in the purchase of milk, Bains said as the Ludhiana plant continued to buy milk from the supplier, this led to excess stocks and milk had to be converted into skimmed milk powder (SMP) and butter.

“This was later sold off at prices much lower than the price at which the milk was bought, thus causing a loss of Rs 1.30 crore. The matter was brought to the notice of the board of directors of the Ludhiana plant. But the managing-director of Milkfed, Alaknanda Dayal, wrote a note in favour of plant officials and submitted it to the directors at a board meeting on July 4,” he claimed.

The MLA alleged that the accounts show only a small quantity of milk sold by the Ludhiana plant. “This means that the money received for milk sold and not accounted for in the account books is siphoned off by some officials in the department who share the spoils with top officials in the Cooperative Department,” he alleged.

The department has rubbished these allegations. Principal Secretary to the Chief Minister, SK Sandhu, who heads the department, and the Milkfed MD said: “We have the state-of-the-art testing labs at all milk plants. The milk supplied is thoroughly checked for quality. Milkfed is a signatory to a deal signed between the Milk Plant, Mohali, and the Ganesh Sewa Samiti. Since regular milk supply to the Mohali plant was restored and we had already contracted the supplier, we diverted the supply to the Ludhiana and Sangrur plants.

“This excess milk was converted into SMP, but changes in the international market brought a fall in the prices of the SMP across the country and it was sold at a lower price. We have already given a reply to the audit department,” they said.

Addressing mediapersons here, Bains alleged bungling in the Jalandhar plant, saying money received from the Centre under a scheme was siphoned off by the plant officers. Sandhu said though the Jalandhar team had told him that there was no such mention in the audit report, he would get the case examined.

The allegations

The MLA said 8.60 lakh litres of milk was supplied to the Ludhiana milk plant by the Ganesh Sewa Samiti

That the plant had no authorisation to buy the milk from the supplier locate in Churu, Rajasthan

That the supplier was contracted to supply milk for 15 days (April 1 to April 15, 2011)

But the samiti continued to supply milk for the entire year

That Churu does not have a large concentration of dairy farms to supply such huge quantities of milk

That the supply from the samiti was synthetic milk