Vijayawada: Assembly Speaker Ayyanna Patrudu has announced the setting up of a House Committee to probe irregularities in the Visakha Dairy after Agriculture Minister K Atchannaidu made a proposal to this effect.
A heated discussion took place in the assembly on Wednesday on the ongoing financial scandal involving the Visakhapatnam Dairy. Several legislators raised allegations against the management.
Telugu Desam MLA Palla Srinivasa Rao criticised the “transformation of Visakh Dairy from a cooperative to a corporate entity.” This shift has led to rampant corruption, he said.
The dairy, which claims a turnover of Rs 2,000 crore, is suffering significant losses due to malpractices. "Billions are being embezzled by hurting the livelihood of two and a half lakh dairy farmers," he said.
Srinivasa Rao said the chairman, vice chairman and directors were all from the same family. “They are misusing funds raised through a trust they had established. They are unjustly purchasing milk at lower prices and marketing it at high rates. Those who benefited from government subsidies under the cooperative sector have manipulated the 2006 Companies Act to misappropriate assets,” he said.
"Funds meant for farmer welfare have been diverted for electoral expenses. They collected Rs 300 from each farmer and built luxurious properties in Chennai and Bengaluru," he said and called for a thorough investigation by the CID or by a judicial commission or a house panel.
Another TD legislator, Velagapudi Ramakrishna Babu, made strong remarks against the dairy management. “The Visakha Dairy scam is larger than even the sand scam involving Jagan Mohan Reddy. The government must reclaim land worth Rs 400 crore that was misappropriated by these people from the farmers,” he said.
Minister Atchannaidu weighed in on the issue, stating, "In 2004, the cooperative tribunal ruled against the company, and a case is ongoing in the high court."
Atchannaidu proposed the setting up of a committee and this was approved by the Speaker. “The house panel must conduct a detailed probe into the irregularities,” the speaker stressed.
