Major scam in Goa dairy unearthed

The Goa State Co-Operative Milk Producers Union has been milked by its officials who have defrauded the co-operative of at least Rs 6 crore, said to Sudin Dhavlikar, Goa Co-Operation Minister.

Disclosing this at the inaugural function of the state level co-operative week, Dhavlikar promised to investigate the matter by handing over the case to the vigilance department.

This is yet another blow to the ailing Goa Dairy, which has suffered numerous problems in recent times, including plunging sales, a raid by a minister and an unprecedented ouster of its chairman in a no-confidence motion.

Stating that he had received information of the irregularities from some directors of Goa Dairy, Dhavlikar stated that there was truth in the claims and that those involved included some officials of Goa Dairy and government servants.

"I have discussed the matter with Goa Chief Minister Pratapsingh Rane regarding the future course of action," said Dhavlikar.

Defending the concerns raised by the minister, registrar of co-operative societies Mihir Vardhan promised that he would not hesitate to appoint an administrator to scrutinise the business of Goa Dairy.

Goa Dairy has regularly been in the news for the wrong reasons. In July 2005, Chief Minister Pratapsingh Rane criticised the quality of cattlefeed produced by Goa Dairy, stating it was both substandard and expensive in comparison to products of other parties.

Barely two months later, Animal Husbandry Minister Mickky Pacheco and the Food and Drug Administration (FDA) officials raided the Goa Dairy plant, following complaints regarding substandard milk.

The minister also received information that the cream was secretly being sold to ghee and butter manufacturers and the money was being siphoned of by the Goa Dairy officials.

In June this year, Vithoba Dessai was ousted as chairman of Goa Dairy in a no-confidence motion. He later challenged the decision in the high court and had obtained a stay.