Special House Committee begins probe into allegations against Visakha Dairy

The Special House Committee was appointed by Assembly Speaker Ch. Ayyanna Patrudu.

The Special House Committee, appointed by Assembly Speaker Ch. Ayyanna Patrudu, to probe into the allegations of irregularities by the management of Visakha Dairy held talks with dairy farmers and representatives of the management on Monday.

Later, addressing media persons, the committee chairman Jyothula Nehru and Gajuwaka MLA Palla Srinivasa Rao said that they held elaborate discussions with both the management representatives and the dairy farmers. The ‘inconsistent’ replies of the dairy management had only increased their suspicions that irregularities could have taken place in the utilisation of funds. One more round of discussions would be held to get clarity on the issue before arriving at a conclusion.

Mr. Nehru said that after the cooperative dairy was brought under the Company Act, the dairy was ignoring the benefits due to the dairy farmers. Experts familiar with the Company Act, Cooperative Act, Finance and other departments would be roped in to assist the committee. “Our task is to safeguard the plant. We will submit a detailed report to the house after conducting a full-fledged inquiry into the allegations,” he said.

Mr. Srinivasa Rao said that while the dairy farmers say that the dairy management had decreased the milk procurement price, the latter was making claims to the contrary. The management has refuted the charge that unqualified persons were given senior positions, while ignoring qualified employees. The farmers’ money goes into a Trust but the management says that it has nothing to do with the Trust.

The other members of the House Committee are: Bonda Umamaheswara Rao, Velagapudi Ramakrishna Babu, Gouthu Sirisha, R.V.S.K.K. Ranga Rao and Datla Subba Raju.

‘Increase procurement price’

Meanwhile, CPI(M) leaders B. Ganga Rao and R.K.S.V. Kumar met the House Committee Chairman and handed him over a memorandum seeking protection of the interests of the dairy farmers and increasing the milk procurement price, which was allegedly reduced by the management recently. They said that around three lakh dairy farmers from the combined Visakhapatnam, Vizianagaram and Srikakulam districts were supplying milk to Visakha Dairy through cooperative milk societies. They alleged that the dairy management was indulging in corrupt practices and pushing the dairy into losses.