Sangam Dairy brought under AP Dairy Development Corporation

The State government has issued a withdrawal order bringing the Sangam Dairy under the AP Dairy Development Corporation. The Sub-collector of Tenali has been named as the person in charge with the responsibility of overseeing the smooth and uninterrupted operation of the unit.

“In order to ensure that there is no further depletion of assets created with support of Government and public monies and having regard to state of affairs and the investigation taken by ACB, the government deemed it appropriate to direct that the day to day activities of the unit shall continue unobstructed with the existing staff and employees, the sub collector, Tenali division, Guntur district, shall be present in the premises of the unit to ensure smooth and uninterrupted operation of the unit including procurement, processing, marketing and all allied activities and in the event of any deliberate stoppage or obstruction of day to day activities by any employee or any person, the sub collector, Tenali is authorised to take such action as it deemed fit and appropriate. The said arrangement shall be for a period of three months,” said the order.

In a G.O. issued on April 27 by the Special Chief Secretary, Poonam Malakondaiah, the government contended that the present unit at Vadlamudi is the same feeder dairy whose management was transferred to the Guntur District Milk Producers Cooperative Union Limited, Sangamjagarlamudi, but the ownership had always remained with the APDDC.

The order followed the arrest of Sangam Dairy Chairman and former TDP MLA Dhulipalla Narendra on April 23 by the Anti-Corruption Bureau on charges of financial irregularities, including raising of huge loans from the National Dairy Development Board.

Citing violations related to the misuse of the dairy assets and machinery under the Guntur District Milk Producers Cooperative Union Limited, prima facie evidence of connivance between the then chairman of GDMPMACUL and the MD, and fraudulent raising of loans from NDDB, the government has withdrawn G.O. Ms. No. 515, Forests and Rural Development (Cooperation) Department, issued in 1978, transferring the management of the feeder/balancing dairy to the union.