K.S. Mani vows legal challenge after Kerala Dairy Development Department dissolves governing board over alleged procurement and financial lapses.
A major governance conflict has erupted within Kerala’s cooperative dairy apparatus following the state government’s sudden dissolution of the Malabar Regional Co-operative Milk Producers’ Union (MRCMPU). As reported by the Deccan Chronicle, the Dairy Development director issued the dissolution order on Friday, appointing the deputy director of Dairy Development in Wayanad as temporary administrator. In response, Milma Chairman K.S. Mani sharply condemned the action as politically motivated, declaring that the governing committee will challenge the administrative order before the Kerala High Court.
The official dissolution order issued by state authorities cited multiple operational and financial irregularities. Animal Husbandry Minister J. Chinchu Rani (reported as Bindhu Krishna) justified the intervention by pointing to prima facie evidence of graft involving lakhs of rupees in milk procurement, the purchase of low-quality milk, and financial mismanagement across various union schemes. Among specific complaints raised were losses tied to a contaminated inter-state milk consignment in Kasaragod, an alleged theft of ghee and dairy products valued at approximately ₹85 lakh from the Malappuram Dairy depot, and audit procedural lapses concerning the Malabar Rural Development Foundation.
Rebutting the charges, Chairman K.S. Mani argued that the government bypassed statutory principles of natural justice and failed to follow mandatory procedural requirements under Section 32 of the Kerala Co-operative Societies Act. Mani emphasized that no formal show-cause notice was served nor were objections solicited from the elected board prior to passing the supersession order. Regarding specific operational allegations, Mani maintained that the ghee irregularities at Malappuram Dairy were uncovered by internal Milma stock audits, a police case was lodged, and the full ₹85 lakh was successfully recovered without financial loss to the cooperative.
Mani further alleged that the state government acted hastily to preempt the union’s annual general body meeting scheduled for September 23, where statutory audited reports were slated for formal presentation to member delegates. The chairman framed the move as part of a wider administrative effort by the ruling Left Democratic Front (LDF) to seize institutional control over Milma’s apex state federation and its regional milk unions. The Malabar dissolution follows the earlier supersession of the Thiruvananthapuram regional cooperative union in July—an action currently being contested before a Division Bench of the High Court—leaving only the UDF-led Ernakulam regional union under elected leadership.
The administrative showdown carries substantial implications for primary dairy producers across northern Kerala. The Malabar union serves as the commercial backbone for thousands of dairy farmers across Palakkad, Malappuram, Kozhikode, Wayanad, Kannur, and Kasaragod districts, managing extensive procurement routes, chilling centres, and retail packaging networks under the Milma brand. As the dispute transitions into protracted legal proceedings, dairy industry observers warn that administrative turbulence risks unsettling routine procurement planning, farmer welfare payouts, and long-term capital investments across one of South India’s most vital cooperative milksheds.
Source: Deccan Chronicle
You can now read the most important #news on #eDairyNews #Whatsapp channels!!!
🇮🇳 eDairy News ÍNDIA: https://whatsapp.com/channel/0029VaPidCcGpLHImBQk6x1F
