State government should immediately seize the milk processing facility of Kamdhenu Enterprise in Porbandar and transfer it to Porbandar District Milk Producers Union as the former is being benefited at the cost of local milk producers, demanded former state Congress chief Arjun Modhwadia on Friday.

He also sought immediate action against former state Agriculture and Cooperatives Minister Babu Bokhiria and the government officials involved in a deal between the union and the company as well as dissolving the union and appoint an administrator.

Modhwadia said the state government, the BJP leader and the Amul management are together destroying the cooperative structure in dairy sector in Gujarat by reintroducing middlemen.

Gujarat Cooperative Milk Marketing Federation (GCMMF), which markets food products under Amul brand, had given permission to Porbandar Milk Producers Union to set up a milk processing plant. But instead the union outsourced the work to KamdhenuEnterprise, a partnership firm established just weeks before the contract was given. The union would provide about Rs five lakh per month to the company for processing milk. Even as Kamdhenu did not have money, the union gave it Rs 11.91 crore, enabled a loan of Rs 24 crore from State Bank of India (SBI) by giving a bank guarantee and forego a grant of Rs 12 crore from central government (if the union had set up the facility on its own). "This way they have siphoned Rs 48 crore from local farmers and set up a private unit with no track record and at the risk of local farmers," said Modhwadia.

He also demanded that action is initiated under Anti Corruption Act against Bokhiria, registrar of cooperatives, concerned officials in the state as well as the abolition of Porbandar Milk Producers Union and appoint a government administrator in the interest of the farmers. Modhwadia also quoted audit reports of Porbandar Union by government auditor and the auditor of the union, which have highlighted the wrong-doings.

THE GRIEVANCES

Congress leader has alleged loss of Rs 48 crore to district coop milk union and says action should be taken under Anti Corruption Act against Bokhiria, registrar of cooperatives, concerned officials in the state as well as the abolition of Porbandar Milk Producers Union.